TITLE

VOIP Service Providers Face Tough Options

AUTHOR(S)
Kuehn, Richard A.
PUB. DATE
May 2005
SOURCE
Business Communications Review;May2005, Vol. 35 Issue 5, p66
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
The article reports on some of the challenges faced by voice over IP service providers. Much of the activity in Washington stems from the service providers" desire to use regulation as a competitive weapon, to write the rules in a way that gives them an advantage. Specifically, that voice via circuit-switched technology was priced on the basis of time (duration of a call) and distance (how far away the caller and called parties were). By contrast, VOIP renders time and distance moot, and that pricing will be based instead on the amount of bandwidth consumed and the nature of the application being transmitted. If that's right, however, some interesting questions come to the fore. Even though voice already is increasingly classified as an "application," pricing hasn't changed very much. As for bandwidth, it's certainly true that the game has changed. Tax avoidance is an area, where VOIP pricing is radically different than traditional circuit-switched voice. The various government-imposed and often telco-supported fees and taxes make up as much as 30 percent of monthly phone bills.
ACCESSION #
16971679

 

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