Rulings on VoIP All Over the Place

Peter : On Rad's Radar?
| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

Rulings on VoIP All Over the Place

So we have a ruling against MagicJack and Ymax that AT&T won that supposedly will just require some tariff changes for MagicJack to be back in the game - collecting its $5M.  There was also a VoIP traffic ruling against PAETEC in favor of CommPartners that basically said that an all-VoIP stream was not subject to access fees, which might be the same ruling in this case.

The FCC held a meeting about Inter-Carrier Comp last week. No ruling or order followed. Why would it? Any ruling will tie it up in Court for years - and they had a shutdown looming, so blame that. If the FCC would just say end-to-end VoIP is not subject to ICC and access fees, we would be done.

Almost all voice is VoIP at some point since most of the LD traffic is carried over an IP network. Hence, why they mean end-to-end. If it starts as VoIP and ends as VoIP, we are good to go. And since U-Verse, FiOS and all th ecable voice is some form of SIP, that would help out about two-thirds of the ICC.

In similar news, wholesale VoIP has a few new players and a couple have merged, but the funny thing about all of this is that voice is a flat pie. It isn't growing domestically. Globally more and more peoples have access to voice services via Skype and cellular than they did before (especially in Africa, LATAM and Asia), so global voice is growing. But domestic voice in the US just shifts from player to player. It's TDM then VoIP. It's on Level3 then it's on Qwest then it's on AireSpring. Price pressure, litigation over access fees, inter-carrier comp, and traffic pumping all add up to an  unstable market. Wholesale is about scale, fractions of pennies, operational efficiencies and collecting revenue due on time. Even some retail service providers have the exact same model for their business. It doesn't play out well, does it SunRocket?

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