Year in review: VoIP finds its voice
The arcane technology had its coming-out party in 2003, going from geek chic to major telephone industry disruptor.
VoIP:
Disruptive technology finds its voice
Internet telephones had their coming-out party in 2003.
Once just for ham radio operators looking for new geek chic, phones that use the Internet rather than a traditional phone network found their way into millions more homes and offices in 2003.
People flocked mainly to free dial-up services, including Free World Dialup or Skype, created in 2003 by the file-swapping folks at Kazaa. Free services let anyone use computers and a broadband connection to chat with other users who are similarly equipped. Skype says software needed to use its service has been downloaded nearly two million times already.
But tens of thousands of others signed up for VoIP subscription services from major cable companies and independent VoIP providers such as Vonage and 8x8. These services allow users to get or make calls using any kind of phone, whether landline, cell or the small number of Wi-Fi phones. Unlimited local and long-distance dialing usually costs 20 percent to 30 percent less than traditional plans, and an ongoing price war is creating even bigger savings.
VoIP's commercial popularity has sparked a regulatory backlash among U.S. states, which want VoIP providers to fund public services just as every other telephone company does. Minnesota was the first to draw blood, telling Vonage that it had to apply for a telephone license and pay the same state fees as traditional telephone operators. Despite a judge's ruling blocking Minnesota's regulatory effort, states including New York and California have been working to come up with their own VoIP regulations.
VoIP providers counter that they aren't against regulation, but that the current set of state rules were designed for telephone networks created more than a century ago and would be impossible to follow given the way the technology works. They'd prefer federal regulators to step in and stop the states from creating a patchwork of different rules and regulations.
They got their wish in late 2003, when the Federal Communications Commission began to examine in earnest what to do about VoIP. By February, the FCC expects to make known its VoIP regulatory position.
But by that time, its likely most of the major broadband providers, especially cable operators, will ="5106133">greatly expand their own VoIP offerings. Though some launched commercial services in 2003, most cable companies continued to sit on the VoIP fence. That's true even though they have most to gain by using VoIP to challenge the Bells' dominance of the local phone market. Most now promise a debut of a major VoIP service in 2004 or even later. Meanwhile, traditional phone companies all announced intentions to slowly move into mass-market VoIP services as well, with AT&T expecting to launch its service in the first quarter of 2004.
--Ben Charny
VoIP--a Tower of Babel?
The services can differ in price or quality, but one thing is constant: Subscribers of different services often can't talk to each other. Free World Dial-Up is pushing to change thatJuly 17, 2003
Free ride over for VoIP?
A cheap, Net-based alternative to traditional phone service is facing a regulatory backlash that could slow adoption of the technology, raise prices and put a stop telephone start-ups.Aug. 25, 2003
Why VoIP is music to Kazaa's ear
Company co-founder Janus Friis explains why some of the same people who shook up the music industry are now tuning up for the traditional telephone industry.Sept. 17, 2003
Judge suspends Vonage order
A federal judge orders Minnesota regulators to stop forcing the Internet phone provider to abide by state telephone operator rules.Oct. 7, 2003
VoIP firms battle California regulators
Internet telephony companies are fighting efforts by the California Public Utilities Commission to apply traditional telephone rules and taxes to their services.Oct. 24, 2003
VoIP providers face price war
The race for customers is leading some companies into a risky game of chicken. But how low can they go--and for how long?Nov. 4, 2003
FCC to begin VoIP inquiry
The Federal Communications Commission is set to start a yearlong investigation into the "appropriate regulatory environment" for Internet-based phoning services.Nov. 6, 2003
Cablevision adds VoIP to broadband menu
The cable provider is offering Net phone service to its broadband customers, giving it one of the largest potential markets for commercial voice over Internet protocol service in the United States.Nov. 11, 2003
California regulators ponder VoIP
The state's public utility regulators will meet in a much-anticipated showdown with Internet phone providers.Nov. 12, 2003
Verizon details Internet phone plans
The company will begin selling Internet telephony services to broadband customers early next year, a Verizon spokesman confirms.Nov. 18, 2003
AT&T to offer Internet calling
The long-distance provider announces a new service it says will be available to consumers early next year.Dec. 11, 2003
Cox Communications dives into VoIP
The cable provider launches its first Net-based phone service, part of a focus on smaller markets, where it wouldn't be cost-effective for Cox to offer its more traditional phone setup.Dec. 15, 2003
VoIP:
Disruptive technology finds its voice
Internet telephones had their coming-out party in 2003.
Once just for ham radio operators looking for new geek chic, phones that use the Internet rather than a traditional phone network found their way into millions more homes and offices in 2003.
Locating local internet providers
People flocked mainly to free dial-up services, including Free World Dialup or Skype, created in 2003 by the file-swapping folks at Kazaa. Free services let anyone use computers and a broadband connection to chat with other users who are similarly equipped. Skype says software needed to use its service has been downloaded nearly two million times already.
But tens of thousands of others signed up for VoIP subscription services from major cable companies and independent VoIP providers such as Vonage and 8x8. These services allow users to get or make calls using any kind of phone, whether landline, cell or the small number of Wi-Fi phones. Unlimited local and long-distance dialing usually costs 20 percent to 30 percent less than traditional plans, and an ongoing price war is creating even bigger savings.
Locating local internet providers
VoIP's commercial popularity has sparked a regulatory backlash among U.S. states, which want VoIP providers to fund public services just as every other telephone company does. Minnesota was the first to draw blood, telling Vonage that it had to apply for a telephone license and pay the same state fees as traditional telephone operators. Despite a judge's ruling blocking Minnesota's regulatory effort, states including New York and California have been working to come up with their own VoIP regulations.
VoIP providers counter that they aren't against regulation, but that the current set of state rules were designed for telephone networks created more than a century ago and would be impossible to follow given the way the technology works. They'd prefer federal regulators to step in and stop the states from creating a patchwork of different rules and regulations.
They got their wish in late 2003, when the Federal Communications Commission began to examine in earnest what to do about VoIP. By February, the FCC expects to make known its VoIP regulatory position.
But by that time, its likely most of the major broadband providers, especially cable operators, will ="5106133">greatly expand their own VoIP offerings. Though some launched commercial services in 2003, most cable companies continued to sit on the VoIP fence. That's true even though they have most to gain by using VoIP to challenge the Bells' dominance of the local phone market. Most now promise a debut of a major VoIP service in 2004 or even later. Meanwhile, traditional phone companies all announced intentions to slowly move into mass-market VoIP services as well, with AT&T expecting to launch its service in the first quarter of 2004.
--Ben Charny
VoIP--a Tower of Babel?
The services can differ in price or quality, but one thing is constant: Subscribers of different services often can't talk to each other. Free World Dial-Up is pushing to change thatJuly 17, 2003
Free ride over for VoIP?
A cheap, Net-based alternative to traditional phone service is facing a regulatory backlash that could slow adoption of the technology, raise prices and put a stop telephone start-ups.Aug. 25, 2003
Why VoIP is music to Kazaa's ear
Company co-founder Janus Friis explains why some of the same people who shook up the music industry are now tuning up for the traditional telephone industry.Sept. 17, 2003
Judge suspends Vonage order
A federal judge orders Minnesota regulators to stop forcing the Internet phone provider to abide by state telephone operator rules.Oct. 7, 2003
VoIP firms battle California regulators
Internet telephony companies are fighting efforts by the California Public Utilities Commission to apply traditional telephone rules and taxes to their services.Oct. 24, 2003
VoIP providers face price war
The race for customers is leading some companies into a risky game of chicken. But how low can they go--and for how long?Nov. 4, 2003
FCC to begin VoIP inquiry
The Federal Communications Commission is set to start a yearlong investigation into the "appropriate regulatory environment" for Internet-based phoning services.Nov. 6, 2003
Cablevision adds VoIP to broadband menu
The cable provider is offering Net phone service to its broadband customers, giving it one of the largest potential markets for commercial voice over Internet protocol service in the United States.Nov. 11, 2003
California regulators ponder VoIP
The state's public utility regulators will meet in a much-anticipated showdown with Internet phone providers.Nov. 12, 2003
Verizon details Internet phone plans
The company will begin selling Internet telephony services to broadband customers early next year, a Verizon spokesman confirms.Nov. 18, 2003
AT&T to offer Internet calling
The long-distance provider announces a new service it says will be available to consumers early next year.Dec. 11, 2003
Cox Communications dives into VoIP
The cable provider launches its first Net-based phone service, part of a focus on smaller markets, where it wouldn't be cost-effective for Cox to offer its more traditional phone setup.Dec. 15, 2003