| This story is one of those | | | | with the loss of power that your cable system |
| too-good-to-be-true tales that actually might | | | | needs, or the loss of cable service itself. |
| be real. The acronym VoIP stands for Voice | | | | If the packet switching gear isn't |
| Over Internet Protocol; that's the technology | | | | functioning properly, phone calls have |
| for making telephone calls over the web. | | | | dropped segments in them like cell phone |
| Several companies have introduced services | | | | signals cutting in and out. |
| that utilize this technological capacity and | | | | |
| they are making a commercial success of it. | | | | Still, harnessing the Internet to challenge |
| That's why major cable operators are now | | | | Ma Bell is an audacious and impressive |
| "bundling" cable service, high speed Internet | | | | endeavor - and it's working. Right now, the |
| access and telephone service in a package. | | | | companies offering the service allow you to |
| They can provide all three products over the | | | | plug your phone into your computer and make |
| single coaxial cable wire that comes through | | | | your calls at a vastly reduced rate than |
| your wall at home. | | | | you'll see from your local phone provider. |
| | | | They aren't stopping there either. One of |
| Telephone service over cable blows right past | | | | them already has a Wi-Fi phone out that will |
| the "level playing field" that antitrust | | | | allow you to drop into a wired internet |
| decisions have sought to achieve in order to | | | | café and call anywhere in the world. |
| provide competition for phone service on a | | | | |
| local level. The telephone companies' | | | | So the question becomes, "Can a $4.95 per |
| switching systems and all those copper cables | | | | month worldwide phone service survive?" The |
| on all those poles have been totally | | | | simple answer would be "How could it fail?" |
| subverted by another Internet service. In the | | | | The true issue here is how the phone |
| words of Peter Sisson, a former Bell Labs | | | | companies respond. They are a powerful |
| researcher, "Telephone service used to be | | | | political and economic force. If they can |
| based on a huge infrastructure of high-priced | | | | saddle the cable operators offering VoIP with |
| equipment...and now it's just software." | | | | common carrier status, that would bring them |
| | | | into the regulatory realm. |
| VoIP is technology that accesses | | | | |
| underutilized bandwidth to move voice | | | | VoIP services could become enormously |
| communications over cable systems. "Packet | | | | popular, and that will inevitably drive |
| Switching" technology moves audio signals | | | | prices up. Just as with the video portion of |
| along the same coaxial and fiber cables that | | | | cable, once we had to have it the rates went |
| carry Internet traffic and cable TV | | | | on a steady climb that continues year after |
| programming. The technology has been | | | | year. But the beauty of the Internet is that |
| developed to compress video signals and to | | | | you can switch to another VoIP provider with |
| more efficiently move data bits for email, | | | | a half hour's worth of clicks and one |
| web browsing and audio conversations along | | | | cancellation call to the cable company. With |
| shared bandwidths by isolating the | | | | no infrastructure required other than the |
| information into "packets" and sending them | | | | usual bevy of servers, there are going to be |
| downstream like boxes on a conveyor belt. | | | | a lot of aggressive new firms that try to |
| | | | make themselves into the phone companies of |
| The down sides for this product concept | | | | the new millennium. |
| include the loss of phone service concurrent | | | | |