North American Network Operators Group

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Re: More on Vonage service disruptions...

  • From: John Levine
  • Date: Wed Mar 02 12:43:02 2005

> Yeah, I forgot about the regulation thing.  I suppose I'd give the
> ISP a call first, but I'd expect it to be working within a few
> hours.  But now that cable modem providers themselves are providing
> VoIP/dialtone, wouldn't those be regulated by the FCC?

The phone service is, the ISP isn't.  Cableco phone service is not the
same as what Vonage provides.  Vonage style VoIP is unflatteringly but
accurately called parasitic, it sits on top of someone else's network
connection without supporting that connection at all, competing with
any other IP traffic on the connection, with traffic going back to a
switch wherever the VoIP company is.

Cableco services use dedicated bandwidth on the cable separate from
your normal Internet connection to connect back to their own switch
which is typically on the cableco's own network.  It's engineered as
phone service and is designed to have performance and reliability much
more like regular phone service than often-flaky VoIP.

The particular case that Vonage has been complaining about is
apparently an ISP owned by a small rural telco.  Rural telcos tend to
have very low rates (since your local calling area is small) but high
costs (since they have few customers spread over a large area), with
the difference made up by universal service funds.  A large part of
the USF money is "access" fees on each minute of incoming or outgoing
phone calls, so if you use VoIP rather than POTS, the revenue they
lose is a lot more than the $20/mo or whatever the local phone rates
are.  The quality of management at those telcos varies a lot (mine is
pretty good, but others can barely find their own shoelaces) and it's
not at all surprising that one of them would panic and block
applications that are siphoning off "their" access minutes.

The solution is to rationalize USF so it's paid at reasonable rates to
whoever is providing service to high-cost customers, but the political
obstacles to doing so are high.  Western Wireless after a lot of
arguing got USF money to provide cell service to underserved or
unserved rural areas, but I've never heard of VoIP going that route.
Since you first have to admit you're a phone company to apply for the
USF gravy train, you can see why parasitic VoIP providers might feel a
little conflicted.

Regards,
John Levine, [email protected], Primary Perpetrator of "The Internet for Dummies",
Information Superhighwayman wanna-be, http://www.johnlevine.com, Mayor
"A book is a sneeze." - E.B. White, on the writing of Charlotte's Web