Ten Ways to Niche the IEC Voice
Revenue to Effect Change in
Datacom Services… especially
rapid internet access.
Gordon Bell
10 May 1998
New World
Wireless is likely to be “the solution” to the
lack of available bandwidth. It's the
technology that is most open to
competition.
There is now more bandwidth then there
are people, so regulatory arguments
based on scarcity are simply invalid.
-- Simson Garfinkle
Reducing voice revenue is the
only avenue for changing the
LEC controlled access
infrastructure!
Time x distance charging must be
changed to...
???
Ten avenues for overthrowing
bandwidth limiting incumbent IECs
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64 Kbps quality audio vs telephony quality
Wireless of all forms including video
Cable for Internet evolving rapidly to voice over IP
CLECs aka Competitive LEC suppliers
Newcos (e.g. Covad): IP service with xDSL plus voice
Startup IP based telephony companies
Large users by-pass LECs and use IXCs and IP for interorganization telephony
• Fax services over Internet undermines base
• Bellcore plan for ISPs to provide “telefony”
• Maintain FCC support FCC for voice over IP without
FCC/PUC interference
Telephone Quality Voice
is an Oxymoron!
• A fundamental analog to digital change is
occuring, except within telephony!
• E.g. a 6 Mhz TV channel can deliver about six
higher DVD quality digital channels
• IECs use 64 Kbps channels to supply
approximately 8 kbps, low-quality voice
• New channels can offer higher quality audio
using >33 kbps.
• Datacom must drive to offer scalable
bandwidth quality, including stereo using
various bandwidths from a 2kbps - 500kbps
Attack plan for ISPs to deliver
voice
•According to the rules, ISPs cannot offer
telephony if it looks like a telephone
•Thee ways that make IP telephony NOT be a
telephone:
•Increased quality… use all the bandwidth
that can be obtained e.g. 33, 56 or
whatever to provide high, not telephone
quality voice
•It is a videophone
•It is a computer and conference device
How a New Player or ISP can Attack
Incumbents e.g. LECs*
• Dial Me Up, Faster and Faster!!!!
Voice over IP at 7.3 Kbps
Using Modems
LEC
*Courtesy of Bellcore
IXC
Telafony
Gateway
ISP+
Internet
Backbone
Plan for Pipes and Wires
ATM
Switches
LEC
Network
IP
Routers
LECs are free pipe and wire access providers.
IP over ATM lets competitors buildout a network
FCC’s 4/10/98 Report to Congress:
How long will it remain?
If you use IP to transmit and store information,
including telephony (unless it looks like a plain
old telephone call), its Information Services.
If you use circuit switching (no storage) its
Telecommunications (and FCC/PUC
controlled)
IP Telephony has to look different!
Bet:
This will hold until 1/2001.