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 • • • • • • • 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.