I just received this Media Advisory from the Competitive Enterprise Institute. Somewhere in between my cascading deadlines, I thought I'd share. Here goes:

SBC Buyout of AT&T Helps Consumers

Washington, D.C., January 31, 2005 — Statement of Braden Cox, Technology Counsel, Competitive Enterprise Institute:

SBC Communication Inc.’s offer to buy AT&T, announced today, is a pro-competitive development in a rapidly changing industry. In an environment where cable, telephone and wireless companies all compete against each other, the combination of these two providers is the natural progression of a communications market working for consumers.

While some critics will no doubt fall back on the same antitrust and consumer welfare rhetoric used to attack every other industry merger, the bigger news is why this sale should not incur strict regulatory scrutiny – intermodal competition. The increasing ability of consumers to substitute different modes – landline telephone, wireless, Voice over IP – for another means an expanding marketplace that transcends the public utility model of the telecommunications industry. Network integration, such as we will see in a combined SBC/AT&T, is a requirement in order to compete effectively with other communications networks.

This merger may be just the beginning of the changes we need to see in the telecom world of higher bandwidth and digital content delivery. As we revisit the 1996 telecom act, there may be even more shakeups. Regulators need to reassess the role of antitrust in the modern tech world and allow market institutions rather than yesterday’s regulatory policy to guide tomorrow's tech world.

CEI bills itself as a non-profit, non-partisan public policy group dedicated to the principles of free enterprise and limited government. For more information, check out the Competitive Enterprise Institute online.

Sylantro Systems Corporation has announced that VoEx, Inc., a VoIP services and enhanced managed services provider based in Grand Rapids, Michigan, and STS Telecom a South Florida-based telecommunications service provider have integrated Sylantro's applications feature server and hosted communications applications as part of their comprehensive new service strategies to deliver richer, differentiated alternatives to Unbundled Network Element Platform (UNE-P) service offerings. UNE-P has been the foundation for many competitive providers' offerings over much of the past decade; however, recent rulings have brought major changes to the UNE-P program.

Today’s announced deployments represent Sylantro's growing base of U.S. customers that are shedding the restrictions of UNE-P by offering highly scalable Voice over IP (VoIP) services for their consumer and business customers.

STS Telecom, a forward-looking service provider, has deployed Sylantro servers and applications as part of the new EVOLUTION enterprise VoIP offering that will be initially deployed in 30 major U.S. markets. STS plans to migrate more than 10,000 existing business and residential customers to the Sylantro platform as part of an end-to-end solution that includes advanced calling features, local/long distance, bandwidth, equipment and installation.

VoEx has deployed Sylantro's applications feature server as the basis for its IP Centrex and IP Mobility services. VoEx serves large, communications-intensive enterprise customers and delivers value-added VoIP applications for CLECs and data backbone service providers throughout the world.

To learn more about the migration from UNE-P to VoIP, check out the ongoing series in Internet Telephony magazine entitled A Service Provider’s Survival Guide to a Successful VoIP Migration. The series makes its debut in the February issue with an article entitled Is There Life After UNE-P? and will continue through June. To subscribe to the magazine, please visit our sign-up page.

Also, make plans to join us in Miami, from February 22-25 for Internet Telephony Conference & EXPO, where we are proud to announce the UNE-P to VoIP Summit – a day-long conference track dedicated to educating CLECs and other service providers on the key issues affecting their very survival.

Niagara Falls!

Slowly I turn… step by step… inch by inch….

VoIP!

Slowly I grow… step by step… inch by inch…

A newly published report from Dell'Oro Group reveals that IP PBX shipments will reach 28 million lines in 2006, surpassing TDM shipments. According to the Dell’Oro Group IP Telephony Enterprise 5-Year Forecast Report, IP Telephone shipments have entered a period of sustained growth. Dell’Oro tells us that the IP Telephone market will expand from simply a PBX handset business into emerging IP Centrex and Residential Voice-over-IP (VoIP) markets. Consumer wireless LAN (WLAN) phone introductions in 2005 will stimulate IP Telephone sales to residential VoIP subscribers.

According to Steve Raab, Director of IP Telephony Research at Dell’Oro Group, “The transition from PBX to IP PBX is happening faster than the transition from Traditional Key Systems to PBX.”

In other positive news this week, AltiGen announced in its earnings report that the company posted record revenues for Q1 05.

And, discussing this week’s earnings announcement from Avaya, and the fact that much of the company’s profits may have come from companies it acquired recently, analysts suggested that lower sales in the company's traditional telephone business could be offsetting higher revenue from Internet telephone systems.

Let’s review: HIGHER REVENUE FROM INTERNET TELEPHONE SYSTEMS.

So, step by step, inch by inch, the enterprise telecom market is becoming the enterprise IP telephony market.

Speed. A hallmark of a truly successful competitive company is the speed with which it can innovate and take advantage of opportunities as they present themselves.

Volo Communications, a carrier's carrier that offers wholesale broadband voice, advanced hosted application services, and a whole lot more, is stepping into the freshly created void formed by Level 3’s announcement this week that it is retreating from the hosted IP Telephony space.

Level 3 announced they were ceasing to offer their (3)Tone Business, its wholesale hosted-PBX service. Tom Keating mentions it in his blog here.

Volo is moving fast. Here’s a copy of the release I got from Volo this afternoon:

Volo Offers Level 3 Hosted PBX Customers Safe Landing

Volo to Provide Level 3 Customers Same Terms; Complete Service and Features
Plus One Month's Free Service

Orlando, Fla., Jan. 27, 2005: Volo Communications, a leading nationwide wholesale provider of advanced voice and data services, made a bold offering today to all service providers using Level 3's (3)Tone Hosted IP-PBX services who are being dropped by Level 3. Volo is offering to transition all Level 3 (3)Tone Business customers to its VoiceOne hosted IP voice service, offering them the same terms and conditions they had with Level 3, along with one month's free service. Level 3 recently announced it is eliminating its wholesale hosted IP-PBX service called (3)Tone Business, which is sold by approximately 100 phone companies and resellers who provide voice service over the Internet. Volo will enable these telephone companies and resellers to seamlessly transition their business customers to its next generation VoiceOne™ network, providing a high-quality VoIP service to their customers, with the most advanced features and services in the industry today.

"Volo's aggressive move today is another example of how they're stepping over the competition by giving ex-Level 3 customers an offer they can't refuse. It would be hard-pressed for any of these companies to find a better deal as good as this one. What we're seeing from Volo today only lends greater credence to their commitment to becoming the leader in the digital media services space," said Sean Badding, President and Senior Analyst of The Carmel Group.

Volo Communications, who owns its own technologies, advanced MPLS VoiceOne network, billing systems and provisioning has been in the voice and data solutions business for three years, providing wholesale broadband VoIP, hosted application services such as IP-Centrex and IP-PBX, and origination and termination services that enable carriers, CLECs, IXCs, cable operators, ISPs, and resellers to provide carrier-quality voice and data services to businesses and consumers.

Shawn Lewis, Volo Communications Founder and CEO who wrote the patents for the first softswitch and the first SS7 Media Gateway, said, "As a carrier's carrier, we offer world-class quality throughout all of our VoiceOne service offerings - from every aspect of our network, all the way to the devices at the end customer's location. Most importantly, unlike others in the industry, we own our technology, billing, provisioning support services - - so we can adapt to market trends and always offer best of breed solutions."

"Service providers that are using the Level 3 service have an immediate replacement solution with the VoiceOne network," Lewis added. "Not only can the service provider transition their customers rather immediately, but they will have a richer set of features as well as the ability to create their own features and services through our service creation environment. Customers also receive the follow support systems: XML-supported phone number support system, Web-based system for consumers, privately branded with their logo, Web-based phone number approval process, Web-based phone number assignment, Web-based customer data updates, phone number block requests, and support for both hardware and software clients.

Customers who want to sign on to Volo's VoiceOne broadband solution should call 407-389-3232, or visit www.volocommunications.com.

In a recent column, The Problem With VoIP Phones , PC Magazine’s resident ‘technopinionist’ John Dvorak has his way with VoIP. He points to the quality of service issues that still exist, and that one solution is the traditional “throw-bandwidth-at-it-and-it’ll-work” approach. I have no argument with Dvorak on this point: With a T1’s worth of bandwidth you can pretty much guarantee good quality voice. And you can keep the squirrels at bay.

He writes, “…the idea that VoIP is going to push aside land lines any time soon is wishful thinking.”

“Any time soon…”

Dvorak isn’t saying that VoIP will never happen: he couches his statement with the phrase “any time soon.” Again, it’s a difficult premise to argue. He's right. For now.

Dvorak’s comments are geared to consumer VoIP, that segment of the market that’s getting all the headlines lately courtesy of Vonage, AT&T, etc… And while there are still some technological kinks to be worked out, you can’t argue with the fact that people are signing up for VoIP services at a breakneck pace.

My only problem, and this probably stems from my role as a proponent of this industry, is the dismissive nature with which mainstream folks — magazine columnists and laypeople alike — treat our nascent industry. I know I should just accept the fact that we as a group are relatively young, and maybe the old-timers simply want us to go to bed, so they can continue their partying.

“Shoo Kid! You bother me!”

But it’s difficult to sit quietly in the corner when we have such a successful story to tell. For a young industry, we’ve already made some pretty heady strides across the landscape.

Service providers clearly see the need to switch out old circuit-switching gear for newer packet-based technology. It lowers the cost of transport and increases the ease of creating and deploying new revenue-generating applications.

Enterprises are increasingly seeing the benefits of IP-based PBXs. They understand the value of productivity increasing applications based on VoIP and presence technology, and the ability to link far-flung remote offices and traveling employees. And as these systems continue to evolve, there is no stopping the transition taking place in enterprises across the U.S.

So it’s back to consumer VoIP. And here, I again find it hard to argue too much with John Dvorak when he states, “the day when all calls are free is still a long way off.”

And yet, there it is again.

“A long way off…”

Exactly how long a way is ‘a long way?’

I’m frustrated by such dismissals that mask the fact that VoIP is steadily getting entrenched out there in the real world. The day is coming when the total minutes of voice carried over IP will outstrip the total minutes of voice traffic over traditional circuit-switched lines. (And frankly, few outside of our industry will either notice or even care when that day comes.)

People tend to forget that the VoIP revolution is more of an evolution, based on lower costs, increased choices for consumers, and the promise of services that will make our lives more productive. VoIP is simply a better, more efficient, less expensive way to transport calls, and oh, by the way, since it’s IP you have that ever-present applications promise.

When people tell us, “Go to bed… Drink your milk… Eat your vegetables,” we need to nod politely and go about our business of building an industry. And one day, when no one’s paying attention, we’ll reach that magic place “a long way off.” As teenagers who become adults, so too will plain old telephony morph into Internet telephony.

I'm sure some old-guard PSTN supporter will shoot me an acid-tinged response, but it's impossible to deny Internet telephony it's eventual ascendance. The Kids are alright. We're growing up. We're coming. Accept it.

Oh by the way, the youngsters are having a kegger on the beach! Actually we're having a trade show in Miami, but you probably already knew that. For more info on the upcoming Internet Telephony Conference & EXPO, please go here.

I recently had the chance to chat with Philip Asmundson, who was recently promoted to national managing partner of Deloitte’s U.S. Technology, Media and Telecommunications (TMT) industry practice.

GG: Please describe the role of Deloitte’s Technology, Media & Telecommunications Group.
PA: The TMT Group is composed of service professionals who have a wealth of experience serving technology, media and telecommunications companies throughout the world in areas including cable, communications providers, computers and peripherals, entertainment, media and publishing, networking, semiconductors, software, wireless, and related industries. These specialists understand the challenges that these companies face throughout all stages of their business growth cycle and are committed to helping them succeed. Deloitte is a leader in providing strategic, financial and operational assistance to its technology, media and telecommunications clients

GG: What areas in telecom should my readers keep an eye on in the coming year?
PA: In our predictions reports , we identify three key trends that your readers may want to watch for 2005:

1.) Two billion cellular users by EOY
By the end of 2005, there will be nearly 2 billion cellular mobile subscriptions worldwide and in excess of 100 percent market penetration in some markets. Subscriber growth will be strongest in developing countries (including Asia and Latin America). The most compelling and lucrative mobile content will continue to revolve around phone personalization, such as ring tones, real tones, wallpapers and basic games.

2.) Strength in PSTN, VoIP and Broadband
In 2005, the vast majority of voice calls will still originate and terminate on the PSTN (Public Switched Telephony Network) due to superior call quality and overall reliability. PSTN operators will reduce prices. Key convenience features, such as stored number dialing, text messaging and conference calling, will stimulate call volume over fixed lines. Meanwhile, VoIP call volume and the user base will increase significantly among consumers and businesses, but adoption and growth will be limited by shortfalls in VoIP’s quality, consistency and reliability and the resulting slightly negative image in the marketplace. Broadband penetration will continue to grow in 2005, with broadband connections finally outnumbering dial-up in many countries.

3.) RFID: Zero to 10 billion tags by EOY
In 2005, RFID will finally make it out of the lab and into the commercial world. The combined influence of major retail chains, defense contractors, automotive manufacturers and others – all of whom are requiring suppliers to use RFID — will prompt a massive increase in RFID adoption, starting from essentially zero. By the end of the year, billions of RFID tags will have been sold and used.

GG: VoIP is an industry on a tear. To what do you attribute the recent growth spurt of this technology?
PA: We believe VoIP’s call volume and growth has been fueled by the proliferation of broadband and growing public awareness. VoIP’s call volume and user base will increase significantly among consumers and businesses alike, but few enterprise customers will migrate completely. Although we believe that VoIP is inevitable, it will remain a niche product in 2005, but its importance to the global voice market will grow substantially.

GG: What are some of the hurdles facing the industry that would impede its success?
PA: Although VoIP quality will continue to improve, for many it will still fall short of expectations. New features will partially offset the quality issues, but those functionality advantages will often go unexploited as vendors and customers continue to focus on price. For enterprises, cost savings may well be less than anticipated, slowing wider adoption. Instead of taking a chance on VoIP, many enterprises will focus instead on getting more value from the PSTN, hiring a professional negotiator or enforcing governance to drive costs down. An even greater number of companies will opt for a hybrid approach, using VoIP for internal communications and the PSTN for external traffic. Another barrier to VoIP adoption will be the rise of VoIP spam, made possible by low-cost VoIP calls that are not subject to current telemarketing regulations. Although VoIP spam will be a limited trend in 2005, there will be a perception of this new threat to users. Finally, the regulatory framework has to date, taken a hands off approach to VoIP but as VoIP grows we expect regulatory scrutiny to focus on VoIP services.

GG: What are your thoughts on the news that FCC Chairman Michael Powell is stepping down from his post at the agency?
PA: Chairman Powell has led the FCC during a period of extreme turbulence for the industry. He has struggled to get his policies passed and has suffered from an inability to get a coalition among the 4 other commissioners. In addition, the FCC has been relegated to the backseat in some areas, as the courts have been drawn into not only interpreting policy but in some cases writing it. As a result, very little has been clarified during his administration and the new FCC chairman will face an increasing need to establish regulatory policy in an increasingly complicated environment. Look for the new chairman to come from outside the FCC and for further turnover at the commissioner level of the FCC.

In Moldova’s never-ending quest for truth, justice, and VoIP performance management solutions, today is a good day. You see, Brix Networks just announced an expansion of its international distribution channels with new value-added reseller agreements with BCT Group of Moscow and Schoeller Network Control (SNC) of Vienna.

Under the terms of the agreements, BCT Group and SNC are authorized to offer the Brix family of hardware and software products, collectively called the Brix System, to carriers and enterprises in the Commonwealth of Independent States (CIS) countries and Austria and Hungary, respectively.

Nations in the CIS include Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Republic of Moldova, Russian Federation, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan.

The Brix System consists of a family of distributed, hardware and software Verifier test points running specialized VoIP performance tests, all managed by either the BrixWorx (service provider) or BrixMon (enterprise) centralized management, analysis, and reporting software engine.

The Brix System provides VoIP service testing across three key areas that impact users' experience of quality, namely:
• Signaling quality (call setup performance)
• Delivery quality (media path network performance), and
• Call quality (overall voice clarity and call experience).

Speaking of Resellers, don't forget that the upcoming Internet Telephony Conference & EXPO in Miami is featuring Reseller Solutions Day, on Wednesday February 23, 2005.

Sessions will include:
• How To Make Money Selling VoIP
• Selling Services: The IP Carrier Agent Opportunity
• Profiting As Resellers of VoIP Solutions

This educational experience for resellers is being sponsored by the Enterprise Communications Association and is free to all who pre-register for a Resller Solutions Day pass.

How to register, you ask? Just click right here.

This week’s Telecom update from Merrill Lynch features a list of potential surprises that the analyst firm thinks might potentially impact telecom services stocks. The report carries the usual disclaimers about investing based on this information, and frankly anyone risking their money in the markets has to realize that the key word there is “risk.”

The list is being billed as low probability/high impact, which I guess is a suitable and appropriate hedge. After all, who knows what lies around the bend?

Anyhow, here are the predictions. I’m not sure how to react to VoIP’s absence from this list. Do they mean that VoIP’s growth is a given, and that nobody should be surprised by it? And what’s with the first entry? Sheesh! Today is depressing enough.

(I bolded the entries I thought were most germane to the usual topics discussed in this blog.)

(1) Economic growth slows unexpectedly.
(2) U.S. rate hikes lead to substantially higher GEM debt spreads and lower GEM equity valuations.
(3) Data revenue growth reaccelerates.
(4) Videoconferencing catches on.
(5) The long-haul data market stabilizes.
(6) “Third pipe” broadband access technologies (fixed wireless and/or BPL) gain momentum.
(7) Regulators look for ways to help telcos.
(8) Wireless competition turns tough.
(9) Smart phones become a mass market product.
(10) 3G mobile data applications catch on.

CompTel/ASCENT CEO H. Russell Frisby Jr. had this to say on the occasion of Michael Powell's resignation:

“We wish Chairman Powell well in his future endeavors. The Chairman has been a strong advocate for the principles in which he believed.

"CompTel/ASCENT looks forward to working with Chairman Powell’s successor. The year ahead is filled with many critical issues that must be addressed promptly and appropriately to ensure that competition between all types of telecom service providers is allowed to flourish. The FCC and its new chief must meet the challenge to encourage competitive broadband deployment, which will result in more choices, new services, and lower prices for U.S. consumers and businesses. In doing so, the Commission must continue its support for the facilities-based, intramodal competition that has resulted amazing technological growth since the passage of the 1996 Telecom Act.”

CompTel/ASCENT was formed in November 2003 by the merger of two trade associations in the competitive telecommunications industry, the Competitive Telecommunications Association (CompTel) and the Association of Communications Enterprises (ASCENT).

Shawn Lewis, CEO of Volo Communications comments on the departure of Chairman Powell:

"Chairman Powell has been a great advocator for VoIP and the associated technologies. He has been a catalyst with his forward-thinking views and he has put the U.S. consumer at the forefront of why the United States needs a competitive telecom market.

"Although unpopular at times, he has maintained his convictions about the future of the telecommunications industry and what it will take to make the latest technologies available to the U.S. consumer.

"We can only hope these views remain within the FCC, as the future for the consumer will rely heavily upon the advancements in this technology."

It's being widely reported today that FCC Chairman Michael Powell will step down from his post.

As promised, here is yet another comment from an industry thought leader regarding this news.

William Wilhelm, partner in the legal firm Swidler Berlin Shereff Friedman, LLP and Regulation Watch columnist for Internet Telephony magazine weighed in regarding the Chairman's departure from the FCC:

"Most VoIP providers will be quite sad to see the Chairman leave. It was under his leadership that the FCC issued its unanimous Vonage Order as well as the other key decisions. These rulings set a clear path to free VoIP from traditional regulatory underbrush.

"The FCC's IP Enabled proceeding remains outstanding and the next Chairman, who ever that may be, will have to answer the many questions that this order presents. It's absolutely critical that VoIP providers and suppliers extend every effort to meet with and educate the new Chairman so as to ensure that he or she shares the same enthusiasm about VoIP as Chairman Powell did."

FCC Chairman Michael Powell is set to announce that he will step down from his post today.

As promised, I will continue to publish comments from industry thought leaders regarding this news.

Here's what Neal Shact, CEO of CommuniTech had to say regarding Powell's resignation.

"Chairman Powell has been a shining beacon of government restraint and has been very supportive of the government nurturing a young VoIP industry that challenges the status quo. It is a sad day when such an enlightened government official departs. Normally you only get this level of interest and caring as a result of lobbyists and special interests spending a lot of money.

"Chairman Powell will go down in the history books as one of the founding fathers of a new generation of communications services. All of us in the VoIP industry owe him our thanks."

Neal Shact was founder and chairman of The International VoIP Council. He is a noted industry expert as well as the CEO of Communitech Services and Clarisys.

In 2004, Michael Powell emerged as the leading voice in government against the regulation of IP telephony. With the news that he may be stepping down today, you can bet that the pundits will begin prognosticating as to who will replace the outgoing Chairman.

Of the many names already being bandied about as a possible replacement for Powell, several stick out as legitimate possibilities. While too early to call, as far as I can see it, one name that jumps off the page is that of former chairman of the Texas Public Utility Commission (PUC) Rebecca Klein.

Ms. Klein is currently the managing partner of Loeffler Tuggey Pauerstein Rosenthal LLP, a national law firm founded by former Congressman Tom Loeffler (R-TX).

Ms. Klein has more than 16 years of experience at the state and federal level, including extensive legal, regulatory and government affairs expertise in energy and telecommunications. She was appointed by Governor Rick Perry to the Texas PUC as a Commissioner and later became the Commission's Chairman. Prior to her years at the PUC, Ms. Klein served as a Policy Director for Governor George W. Bush, with particular focus on telecommunications, energy, housing, technology and banking issues.

She also served as Associate Director in the White House Office of Presidential Personnel under President George H.W. Bush.

A Major in the U.S. Air Force Reserve, she was awarded the National Defense and Southwest Asia Service Ribbons for her service in Saudi Arabia during Desert Shield/Desert Storm.

Ms. Klein graduated from Stanford University with a B.A. in Human Biology, obtained her Masters in National Security Studies at Georgetown University and earned her JD at St. Mary's University in San Antonio. She is admitted to the state bar to practice in Texas.

They say it's who you know that determines your path in life. Ms. Klein has the opportunity and the connections to add to an already distinguished career. No stranger to serving her country, there's a good chance that once again Rebecca Klein might be asked to serve.

This morning's report from The Wall Street Journal, that FCC Chairman Michael Powell was set to step down from his post today, set off a flurry of activity throughout the blogosphere (here) (here) and the online community.

As a service to my readers, I plan to publish observations from the leading voices in our industry as they respond to my call for commentary.

First up, Michael Khalilian, chairman and president of the International Packet Communications Consoritum, a leading VoIP forum, checks in with his thoughts:

“Chairman Powell leaves behind a positive legacy. As a proponent of competition, Michael Powell’s FCC rulings were encouraging for both ILECs and CLECs. Perhaps most important was Chairman Powell’s initiatives to ‘leave VoIP alone’ allowing service providers to focus on deploying the technology and allowing it to mature rather than get bogged down focusing on the regulatory issues at hand.

“I hope that Powell’s replacement will continue to pursue policies that will enhance competition in the industry and foster further development of packet telephony. The objective should be to create an environment where service providers, vendors, and consumers work cohesively to transition to a new generation of packet communications replete with all the features and functions for use in our daily lives.”

Keep an eye on this space all day as the comments keep rolling in.

I received this news earlier today, and having just put the wraps on our February issue I thought I’d share. You see, the February issue features a cover story on Triple Play. And so, with that in mind, I offer today’s news from Endavo.

Endavo, a digital services aggregator, enables small IP-service providers (voice, data, video) to diversify their offerings to their clients by plugging into the Endavo EcoSystem. Not only does the EcoSystem provide the technology for Endavo partners to add those services, but it also handles billing and account management.

I’ve pasted the release below.

The Digital Linchpin: Endavo Wins Race for ‘The Last Mile’

Utah-based Digital Services Aggregator Levels the Playing Field for Voice, Data and Video Providers

SALT LAKE CITY, UT – Jan. 20, 2005 – Endavo Media and Communications today announced its ownership of the elusive ‘last mile’, connecting consumers to a full range of digital service and content options - no matter where in the country the consumer resides.

“We have successfully completed what many see as ‘the last mile’ in digital entertainment and distribution, direct delivery to the home,” said Endavo CEO Paul Hamm. “Through partnerships with local governments, school campuses, independent service providers and real estate developers, Endavo is now delivering on what many see as the promise of Internet Protocol TV (IPTV), as well as improved, cost-effective digital services from anywhere in the world – geography is no longer a barrier.”

Endavo partners fuel the Endavo EcoSystem, a unique content delivery mechanism that provides an accounting and distribution framework for independent providers of IP-based products and services, including VoIP (voice over Internet protocol), networked gaming, content and applications.

These providers can ‘plug’ their services into the Endavo EcoSystem and immediately expand what they offer to customers, as well as expand their own customer base – without paying to develop their own additional infrastructure. Once linked in to the Endavo EcoSystem, the services become immediately available to the entire Endavo subscriber base. Local video content partners, as well as previously announced IPTV partner, FTTH Communications, are key participants in the Endavo EcoSystem.

“The connection between local communities, service providers and real estate developers is key – the partnerships we own literally lay the groundwork for the future of digital entertainment,” said Hamm. “The leadership model that Endavo is providing to that end translates into true consumer empowerment, the likes of which no one has seen to date.”

In an article for TMCnet.com yesterday, our own Johanne Torres reported on Comcast’s announcement that the company will launch an Internet telephony service by the end of this year. According to Johanne, Comcast is targeting residential customers with what seems to be the priciest of all VoIP-enabled calling service plans.

It’s interesting to me that VoIP remains extremely price-sensitive. Or rather that people remain very sensitive to VoIP's pricing. I mean, price is always the first thing people notice about VoIP. “It’s cheaper than regular phone service,” they say. “It’s a less expensive alternative.”

Maybe I’m jaded, or maybe I’m just too deep in the VoIP forest to notice any trees, but to me VoIP is about more than just lower prices. I have always maintained since we launched Internet Telephony magazine in 1998 that the real benefits of VoIP are all the potential services that are enabled by the technology. In the enterprise space, those services and applications are easier to identify. For the consumer market, it gets a bit cloudier, and perhaps that is why the conversation always comes back to price. And without getting into it here and now, the standard services being offered by almost every VoIP provider are already miles ahead of what people were used to with standard POTS.

Comcast is clearly asking more for their VoIP service that the competition. However, they are also offering more, and they will promote their service not as an alternative to the Packet 8’s and Vonage’s of the world, but rather as an alternative to the more traditional phone companies. And if Comcast is able to advance their offering as “service heavy,” then it is worth the premium.

Let’s be honest. I’m sure that the company that has been trialing VoIP to its customers since as far back as 2002 has also taken some time to do a little market research. If their customers feel comfortable buying voice from their cable provider, if they feel a benefit from paying a single bill (as opposed to writing multiple checks each month to multiple providers, in multiple envelopes…), if Comcast can convince the market that they can deliver a higher level of service quality and reliability, then people will pay more.

Other VoIP plans may be cheaper, but Comcast, by pursuing a slightly higher price may be setting up on the right side of an age-old argument: At the end of the day, many people truly believe that in life, you get what you pay for.