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