SBC VoIP Tariff Scare

According to several sources, SBC plans to file a new tariff with the Federal Communications Commission that aims to increase the fees paid by Internet service providers for calls completed on the company's local-phone network. In other words, if you use VoIP and terminate on SBC's PSTN network you're going to pay up. If the interpretation of this tariff filing is correct, this would mark the first time that a RBOC or phone company has tried to levy a fee on VoIP providers. It's not "exactly" a correct interpretation, but I'll get into that in a minute.

As most people using VoIP know, VoIP calls avoid the traditional public-telephone network usually until the "last mile" when the call is then completed to the PSTN number dialed. News of the filing came as SBC recently announced it would make Internet phone service available by early next year to around five million residential subscribers of its high-speed Internet.

This move has resulted in cries of "foul play" by VoIP advocates, including FCC Chairman Michael Powell, which just a couple of weeks ago deemed Internet-based phone companies exempt from state regulation, making Voice over Internet to fall under federal jurisdiction. According to FCC officials, they said said Mr. Powell is concerned about SBC's plans.

SBC officials defended the new tariff, saying that FCC and industry officials are misinterpreting it. In fact, upon further investigation I learned that SBC is planning to introduce something called True IP to PSTN (TIPToP) service by filing a tariff with the Federal Communications Commission (FCC).

According to SBC, TIPToP service is simply a traditional TDM telecommunications service featuring the same old switched circuit interfaces but specifically designed for use by a VoIP provider to connect traffic from its IP end users to end users of the circuit-switched network. They also stated that TIPToP service is not a mandatory offering but voluntary. Internet phone providers who choose not to purchase the TIPToP service can simply use their existing PSTN call termination setup, which already is under current FCC guideliness, regulations, and tariffs.

Ok, so if I interpret this correctly, SBC is offering this TIPToP service to Internet phone providers such as Vonage, Packet8, AT&T CallVantage, etc. and they are going to charge them money for it? Well, there must be some sort of value add in order for SBC to believe the Internet phone providers are going to pay them this money. Time to dig a little deeper.

According to SBC, they were quoted as saying it is "confident that VoIP providers that are interested in offering a compelling VoIP service to their customers will recognize TIPToP's benefits."

According to Advanced IP Pipeline, TIPToP Service provides two types of switched circuit port interfaces (one-way and two-way) designed to provide seamless functionality between the Time Division Multiplexing (TDM) based voice network and VoIP-based network. The interfaces incorporate choke trunks, Transport, SS7 connectivity, and call related database query capabilities to the tandem or end office switch in which these interfaces are installed.

SBC claims that TIPToP service provides more efficient connectivity for VoIP providers and their customers who want to send calls to, and receive calls from, the circuit-switched network. FCC officials has asked SBC to put the "voluntary" promise into writing to ensure the company wouldn't in the future cut off alternative ways to connect.

Phew! I think the VoIP industry can breathe a sigh of relief. No mandatory access charges for VoIP service providers -- let's hope it stays that way.

| 3 Comments | 6 TrackBacks

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6 TrackBacks

SBC VoIP Tariff Scare TrackBack URL: http://blog.tmcnet.com/mt/mt-tb.cgi/446

I can't believe I missed this yesterday when I was looking through my RSS Feeds. Om Malik's entry on how SBC is using their monopoly powers to snuff out the VoIP competition is absolutely spot-on. Any of the ILECs could... Read More

A shot across SBC's bow from Deep Thoughts by Dan Ryan on November 28, 2004 7:33 AM

FCC Chairman Michael Powell took a shot across SBC's bow on Friday by warning the carrier that its recently tariffed TIPToP offering should not be "interpreted to force a set of compensation relationships on VoIP providers and their connecting carriers... Read More

A shot across SBC's bow from Deep Thoughts by Dan Ryan on November 28, 2004 7:36 AM

FCC Chairman Michael Powell took a shot across SBC's bow on Friday by warning the carrier that its recently tariffed TIPToP offering should not be "interpreted to force a set of compensation relationships on VoIP providers and their connecting carriers... Read More

A shot across SBC's bow from Deep Thoughts by Dan Ryan on November 28, 2004 7:41 AM

FCC Chairman Michael Powell took a shot across SBC's bow on Friday by warning the carrier that its recently tariffed TIPToP offering should not be "interpreted to force a set of compensation relationships on VoIP providers and their connecting carriers... Read More

SBC VoIP Woes from VoIP Blog - VoIP News, Gadgets on December 7, 2004 2:39 PM

I recently wrote this blog entry: SBC VoIP Tariff Scare Well someone posted a comment to my blog that if true is very very interesting. It would mark the first time that I have heard of that a U.S. company... Read More

SBC VoIP Woes from VoIP Blog - VoIP News, Gadgets on December 7, 2004 2:45 PM

I recently wrote this blog entry: SBC VoIP Tariff Scare Well someone posted a comment to my blog that if true is very very interesting. It would mark the first time that I have heard of that a U.S. company... Read More

3 Comments

I'm a 32 year old white male. SBC banned my father from calling me, because I have Packet8 service! They've already "Tarrifed" my family. SBC sent my dad a threatening letter stating that they will terminate his phone service if he didn't stop calling my phone because I use a VOIP service. He doesn't have DSL, but I do (SBC DSL in fact!) We both live in California. We both pay Federal taxes on our phones, and now we've been denied our freedom of speech to use our phones to call each other and say hi! I called Packet8 and they said they have never heard of this type of action and are interested. It also feels like I've been discriminated against simply because I have VOIP. I suppose I'm "not worthy" to talk to SBC customers like other Americans, and I should be shunned and cut off from society? What's ironic is that 2 months ago, SBC sabatoged our phone line at my house when I told them I was thinking of switching over to VOIP. Suddenly both our internet and phones were dead. We called SBC and they said a person they called "Stephanie" cancelled our phone service for us. It took us 2 months to get it back, and then the day is was supposed to be re-activated, they said there was no record of our order. This happened 2 times before our phone finally came on, and then 3 times before our internet finally came back on! If this isn't corporate bullying I don't know what is.
I supposed this is off the Tarrif issue but now I'm getting a fuller picture of what SBC is up to.

Disgusted SBC DSL and Phone Customer,
Tim

I'm a 32 year old white male. SBC banned my father from calling me, because I have Packet8 service! They've already "Tarrifed" my family. SBC sent my dad a threatening letter stating that they will terminate his phone service if he didn't stop calling my phone because I use a VOIP service. He doesn't have DSL, but I do (SBC DSL in fact!) We both live in California. We both pay Federal taxes on our phones, and now we've been denied our freedom of speech to use our phones to call each other and say hi! I called Packet8 and they said they have never heard of this type of action and are interested. It also feels like I've been discriminated against simply because I have VOIP. I suppose I'm "not worthy" to talk to SBC customers like other Americans, and I should be shunned and cut off from society? What's ironic is that 2 months ago, SBC sabatoged our phone line at my house when I told them I was thinking of switching over to VOIP. Suddenly both our internet and phones were dead. We called SBC and they said a person they called "Stephanie" cancelled our phone service for us. It took us 2 months to get it back, and then the day is was supposed to be re-activated, they said there was no record of our order. This happened 2 times before our phone finally came on, and then 3 times before our internet finally came back on! If this isn't corporate bullying I don't know what is.
I supposed this is off the Tarrif issue but now I'm getting a fuller picture of what SBC is up to.

Disgusted SBC DSL and Phone Customer,
Tim

He should have asked me, I would have given him a copy of My award winning course on
Starting a Record Label
over at

http://www.TheUltimateRecordLabel.com/bp

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