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There's no such thing as a free lunch, apparently. But many of you have been circumventing BT's charges by making use of upstart technology such as Skype. Free telephone calls routed over the internet to anywhere in the world; there are millions taking advantage of fabulous savings. By 2010, 30 per cent of U.S. homes will use only cellular or internet telephony says analyst firm Gartner Inc., and Skype now boasts over 230 million downloads of its software and 4 million users online at any time. But the complimentary meal will have to end. Worldwide, the incumbent telephony companies are fighting back by installing software and equipment that differentiates between different types of network use, and ISPs are feeling the pinch of a tightening market. According to Narus – vendor of software used to show operators the volumes and types of data traffic – between 8 and 25 per cent of telephone calls are being bypassed with VoIP. "The core business of traditional telephony providers is being threatened," it says. In response, the United Arab Emirates, Panama and Mexico, have all blocked internet voice calls to protect the national operator. Yet blocking is not the only option. Varying rates can be charged for VoIP, data or for different types of messages between applications. The multi-tier, multi-rated internet is definitely coming. Network-infrastructure vendor Cisco manufacture equipment for networks running data, voice and video – known as a converged network – and for creating business models based on the variety of data being transported. Because voice data must be delivered promptly, so conversations do not breakdown, it sometimes requires managers to boost VoIP delivery in isolation of other types of data. Likewise, for maximising quality of VoIP, Nick Frost, consultant at the Information Security Forum (ISF) recommends organisations install dedicated voice networks, or if not possible, virtual networks (vLANS) that can be configured for voice. Partly, the motivation is to improve call quality to compete with public networks (PSTN). "We take it for granted, but it [PSTN] is extremely resilient, something that VoIP can not currently deliver," says Frost. "But it is inevitable that VoIP will take over as the voice service of choice, bringing with it these additional new security risks." But the technology also enables new methods for charging. David Harney, Cisco marketing manager, says, "We provide the mechanics for an ISP to make a direct correlation between the application [being used] and the user, and they can bill appropriately. It's up to them to build a business model based on the facility and charge in a flexible way." For example, an ISP might provide a basic broad band for £12.99 a month, and a premium VoIP enabled broadband for £15 a month. Harney explains how, increasingly, ISPs are looking beyond flat rate models and charging for premium services. He sees this as a growth area for Cisco since a maturing broadband market is putting downward price pressure on ISPs. "They must either find economies of scale," he says, "or differentiate between data types." In the UK at least, these developments are occurring without the interference of regulation. Ofcom are keeping their distance from what is considered to be a very early, immature industry. Stephen Carter, Ofcom chief executive, said, "Broadband voice services are a new and emerging market. Our first task as regulator is to keep out of the way.” Nonetheless, Ofcom has released guidelines for VoIP service providers, and will table regulation in due course. Depending on how it views the market place – and Contractor UK was told it was not possible to make predictions at this stage – the regulator might even help to crystallise movement to a multi-tier charging structure. Wouldn't that be fair enough if ISPs had to invest in special equipment or guarantee levels of service? Probably, but it would also be an excuse to end the free lunch many of us have been gorging on, and just when we were becoming dependent. William Knight Jan 11, 2006 Email this article Printer friendly page Previous Page
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