Pyramid Research, a USA-based consultancy firm, has released a report on Portal VoIP services and fixed telco operators, "VoIPocalypse Now: How Google, Skype, and Yahoo! Will Change Fixed Telcos Models". While unable to get a copy of the full US$1,490 report, below are some comments on the recommendations for fixed telcos in the free report excerpt made available by Pyramid.
--- Francis Ford Coppolas Apocalypse Now brought the pernicious themes of Joseph Conrads Heart of Darkness into a then modern-day but similar context of imperialism as a brutally corrupting force and the hypocrisies inherent in its justification. The violent madness of Marlon Brandons character, Kurtz, while revealed as being closely linked to imperialism is also posited as a relative state of being. Ultimately, Coppolas film and Conrads novella comment on the condition of being removed from social infrastructure (the light of civilization) and the resulting excesses of unchecked power in the absence of a higher authority. Which of course leads us to the issue of fixed line incumbent telcos and the need for regulation. It is apt that Pyramid Research chose to appropriate this imagery for a recent intelligence report, VoIPocalypse Now: How Google, Skype, and Yahoo! Will Change Fixed Telcos Models. Priced at US$1,490, the publication is beyond the means of our research resources budget. However, the promotional material provides a glimpse into the strategies to maintain the empire, at least for now, in face of the unstoppable tide of new technologies and services that will force fixed telcos to rethink their revenue strategies. The first of five strategies is a commonsense one: **** "Highlight VoIP vulnerabilities. Compared with PSTN calling, VoIP can be considered a less robust medium for voice. Call quality can be impeded by other data traffic, calls may have difficulty connecting, and in power outages calls will not be possible at all. For subscribers, these may be persuasive reasons to retain an old fashioned copper wire to the home." **** This is an important point for regulators too. Quality of service, emergency services, directory assistance, and itemised billing these are important consumer-related considerations and should be subject to regulatory conditions. **** "Cultivate subscriber lethargy. Tactics can be introduced that increase the degree of friction required to switch operators, such as impeding number portability, fixed term contractual commitments, providing inclusive hardware, and discounting for long-term subscribers. At best, such activities temporarily slow churn. At worst, they may alienate existing subscribers and deter prospects." **** I can only speculate that the full report also provides strategies for couching such tactics in a promotional language: incentives rather than friction; stability rather than impeding; etc. The next point requires no additional comment: **** "Interfere withor even blockVoIP packets to affect QoS for third parties. Narus, a San Francisco based company, has been at the forefront of developing network analysis technology specifically designed to monitor and isolate VoIP data packets. The software either directly blocks third-party VoIP calls made over operator networks, or introduces interference, lowering the overall quality of conversations. Such practices are at the mercy of regulatory interventionshould net neutrality be enforced in the US, operators would not be able to prioritize operator-owned data over third-party data. However, in countries where incumbent operators remain closely aligned with the government in power, protection of PSTN revenues can be maintained. Operator VoIP in such markets could also be priced at a premium, since quality can be guaranteed to be better than third-party equivalents." **** Finally, while contentious, at least not an illegal strategy in most countries: **** "Lobby for the ability to interfere with/block VoIP packets. The regulatory environment in most developed countries will aim to provide a level playing field and competitive environment. Since IP technology has altered the rules of the game, allowing new entrants to directly compete with established players at a fraction of the expense, fixed operators may find regulatory support in proposals that would allow preferential treatment for data owned by the network operator since they are paying for the underlying network. Alternatively, tariffs could be levied for third-party data sent over an operators network. The arguments for and against net neutrality warrant extensive examination in their own right, but it is certain that VoIP will be one of the core motivating factors for both sides of the debate." **** The final sentence in the above paragraph is the most sensible one in the promotional download. There isnt much to add here that isnt already obvious. As Pyramid Research itself comments in its VoIPocalypse Now brochure, this is an unstoppable tide. Underhanded tactics to resist revenue cannibalism may save the CEOs of today, but wont build an information economy for tomorrow. -------------------------------------------------------------------------------- Pyramid Research will host a free Webinar on VOIPocalypse Now: How Google, Yahoo, Skype and others plan to dominate telcos at 11:00 EST on 29 August, 2006. Register at Pyramid's website. -- Amy Mahan LIRNE.NET Learning Initiatives on Reforms for Network Economies <www.lirne.net> World Dialogue on Regulation <www.regulateonline.org> _______________________________________________ DIGITALDIVIDE mailing list DIGITALDIVIDE@mailman.edc.org http://mailman.edc.org/mailman/listinfo/digitaldivide To unsubscribe, send a message to [EMAIL PROTECTED] with the word UNSUBSCRIBE in the body of the message.
