Year in review: VoIP's voice gets stronger
year in review After nearly a decade in gestation, Net phone service became the telecom story of the year.
VoIP's voice gets stronger
Internet telephones broke through the mass market in 2004, after nearly a decade in gestation, and became the telecom story of the year.
Once just for ham radio operators looking for new geek chic, phones that rely on the Net rather than the traditional phone network found their way into nearly a million homes in 2004.
Net-based service allow users to get or make calls using any kind of phone: landline, cell or Wi-Fi. Unlimited local and long-distance dialing usually costs 20 percent to 30 percent less than with traditional plans, and an ongoing price war is creating even more savings.
The players? Vonage, which has more than 300,000 subscribers, is the undisputed king of commercial voice over Internet Protocol (VoIP) providers. But it's unclear how long its reign will last. Cable companies blanketing TV and radio with advertising about their "triple play" packages--which include voice, video and high-speed data service--have closed the considerable subscriber lead Vonage once had. More than 250,000 people now get their phone service from cable provider Cablevision, and 200,000 get it from Time Warner Cable, which says it is adding 10,000 new phone subscribers every week.
VoIP providers have also managed in the last 12 months to quell a backlash among state utility regulators, which want VoIP providers to fund public services, as every other telephone company does. Enter the Federal Communications Commission. Within the last 12 months, there have been two major FCC decisions that are considered pro-VoIP, and they have stalled until at least January, perhaps much longer, any efforts by states to slap price-rising regulations on Net phone calls.
It was this regulatory-free status that persuaded cable operators to finally jump into the market. Once sitting on the fence, most cable companies chose to declare VoIP ready for prime time in 2004, then began aggressive rollouts. Time Warner now sells telephone service in 30 of its 31 markets, while Cablevision has blanketed its Northeast markets, including the lucrative New York City area, with voice services. Traditional phone companies made good on their intentions to move into mass-market VoIP services as well, with AT&T, Verizon Communications and other major local phone companies extending their VoIP services nationwide in 2004.
VoIP's success overshadowed other notable developments for cell phones, which are now owned and used by more than half of the American population. In one of the more promising developments of the year for wireless operators, long-suffering wireless data offerings like messaging, online games and ring tones morphed into a billion-dollar-a-year revenue makers.
The field of major U.S. cell phone service providers shrank by one, with Cingular Wireless buying an ailing AT&T Wireless for $41 billion. With 46 million subscribers, Cingular Wireless has supplanted Verizon Wireless as the new No. 1 cell phone service provider.
The year's biggest telecom losers were AT&T and MCI, the once-high-flying local phone companies that have now ceded the local phone market to BellSouth, Qwest, SBC and Verizon, which collectively own the telephone infrastructure extending into nearly every U.S. home. The retreat was the result of an FCC ruling that gave significant control over the local phone networks, which no longer have to open up their local phone networks to competitors at government-set rates.
--Ben Charny
Feds back wiretap rules for Internet
FCC Chairman Michael Powell says giving police access to broadband networks and VoIP calls is "essential."August 4, 2004
Cox: VoIP ready for prime time
The firm still has a place for old-fashioned circuit switches, but it's rallying behind Net telephony, which is improving in quality, it says.May 18, 2004
SBC joins the Net phone party
The local phone giant will go after the "young and wireless" crowd in 2005 with a VoIP plan.November 16, 2004
Verizon's Net phone service takes wing
Launch of VoiceWing makes Verizon largest traditional phone company yet to enter growing VoIP market.July 22, 2004
States, feds headed for VoIP clash
Large U.S. states are moving ahead with Net-phoning rules, forcing an inevitable tussle with federal regulators over jurisdiction.May 20, 2004
Cities try last-minute grab for Net phone taxes
A day before federal regulators are expected to free VoIP providers from state taxes, two California cities want their cut.November 8, 2004
FCC further deregulates Net calls
States are now barred from imposing telecommunications regulations on Net phone providers.November 9, 2004
Feds claim control over VoIP, leave tax issue open
FCC seizes control of Internet telephony from states but leaves details like fees and 911 compliance for the future.November 15, 2004
Minnesota backs down on VoIP rules--for now
Regulators suspend attempt to impose their old fashioned telephone rules on Internet phone service Vonage.December 1, 2004
Phone fray attracts cable industry
Cable companies hope they are up to the task of competing with the nation's local phone carriers.June 21, 2004
Till death do you part (from your phone company)
How much would you pay for a lifetime of unlimited phone calling? Try $1,000 on for size, says a New England firm.December 6, 2004
For the U.S., a 3G wake-up call in Cannes
When it comes to third-generation wireless broadband services, Europe and Japan rule, say execs gathering for next week's 3GSM Congress.February 20, 2004
Conflicting technologies may stall cell mergers
The Cingular-AT&T Wireless deal puts merger pressure on carriers, but incompatible technologies could cause problems.February 18, 2004
For cell phones, it's TV to the rescue
Cell phone executives say new data-oriented services such as TV will help bolster an industry in a precarious state.October 25, 2004
Bell tolling for DSL?
Legal rulings taking effect remove regulations controlling how local phone carriers rent their networks to rivals.June 15, 2004
VoIP's voice gets stronger
Internet telephones broke through the mass market in 2004, after nearly a decade in gestation, and became the telecom story of the year.
Once just for ham radio operators looking for new geek chic, phones that rely on the Net rather than the traditional phone network found their way into nearly a million homes in 2004.
Locating local internet providers
Net-based service allow users to get or make calls using any kind of phone: landline, cell or Wi-Fi. Unlimited local and long-distance dialing usually costs 20 percent to 30 percent less than with traditional plans, and an ongoing price war is creating even more savings.
The players? Vonage, which has more than 300,000 subscribers, is the undisputed king of commercial voice over Internet Protocol (VoIP) providers. But it's unclear how long its reign will last. Cable companies blanketing TV and radio with advertising about their "triple play" packages--which include voice, video and high-speed data service--have closed the considerable subscriber lead Vonage once had. More than 250,000 people now get their phone service from cable provider Cablevision, and 200,000 get it from Time Warner Cable, which says it is adding 10,000 new phone subscribers every week.
Locating local internet providers
VoIP providers have also managed in the last 12 months to quell a backlash among state utility regulators, which want VoIP providers to fund public services, as every other telephone company does. Enter the Federal Communications Commission. Within the last 12 months, there have been two major FCC decisions that are considered pro-VoIP, and they have stalled until at least January, perhaps much longer, any efforts by states to slap price-rising regulations on Net phone calls.
It was this regulatory-free status that persuaded cable operators to finally jump into the market. Once sitting on the fence, most cable companies chose to declare VoIP ready for prime time in 2004, then began aggressive rollouts. Time Warner now sells telephone service in 30 of its 31 markets, while Cablevision has blanketed its Northeast markets, including the lucrative New York City area, with voice services. Traditional phone companies made good on their intentions to move into mass-market VoIP services as well, with AT&T, Verizon Communications and other major local phone companies extending their VoIP services nationwide in 2004.
VoIP's success overshadowed other notable developments for cell phones, which are now owned and used by more than half of the American population. In one of the more promising developments of the year for wireless operators, long-suffering wireless data offerings like messaging, online games and ring tones morphed into a billion-dollar-a-year revenue makers.
The field of major U.S. cell phone service providers shrank by one, with Cingular Wireless buying an ailing AT&T Wireless for $41 billion. With 46 million subscribers, Cingular Wireless has supplanted Verizon Wireless as the new No. 1 cell phone service provider.
The year's biggest telecom losers were AT&T and MCI, the once-high-flying local phone companies that have now ceded the local phone market to BellSouth, Qwest, SBC and Verizon, which collectively own the telephone infrastructure extending into nearly every U.S. home. The retreat was the result of an FCC ruling that gave significant control over the local phone networks, which no longer have to open up their local phone networks to competitors at government-set rates.
--Ben Charny
Feds back wiretap rules for Internet
FCC Chairman Michael Powell says giving police access to broadband networks and VoIP calls is "essential."August 4, 2004
Cox: VoIP ready for prime time
The firm still has a place for old-fashioned circuit switches, but it's rallying behind Net telephony, which is improving in quality, it says.May 18, 2004
SBC joins the Net phone party
The local phone giant will go after the "young and wireless" crowd in 2005 with a VoIP plan.November 16, 2004
Verizon's Net phone service takes wing
Launch of VoiceWing makes Verizon largest traditional phone company yet to enter growing VoIP market.July 22, 2004
States, feds headed for VoIP clash
Large U.S. states are moving ahead with Net-phoning rules, forcing an inevitable tussle with federal regulators over jurisdiction.May 20, 2004
Cities try last-minute grab for Net phone taxes
A day before federal regulators are expected to free VoIP providers from state taxes, two California cities want their cut.November 8, 2004
FCC further deregulates Net calls
States are now barred from imposing telecommunications regulations on Net phone providers.November 9, 2004
Feds claim control over VoIP, leave tax issue open
FCC seizes control of Internet telephony from states but leaves details like fees and 911 compliance for the future.November 15, 2004
Minnesota backs down on VoIP rules--for now
Regulators suspend attempt to impose their old fashioned telephone rules on Internet phone service Vonage.December 1, 2004
Phone fray attracts cable industry
Cable companies hope they are up to the task of competing with the nation's local phone carriers.June 21, 2004
Till death do you part (from your phone company)
How much would you pay for a lifetime of unlimited phone calling? Try $1,000 on for size, says a New England firm.December 6, 2004
For the U.S., a 3G wake-up call in Cannes
When it comes to third-generation wireless broadband services, Europe and Japan rule, say execs gathering for next week's 3GSM Congress.February 20, 2004
Conflicting technologies may stall cell mergers
The Cingular-AT&T Wireless deal puts merger pressure on carriers, but incompatible technologies could cause problems.February 18, 2004
For cell phones, it's TV to the rescue
Cell phone executives say new data-oriented services such as TV will help bolster an industry in a precarious state.October 25, 2004
Bell tolling for DSL?
Legal rulings taking effect remove regulations controlling how local phone carriers rent their networks to rivals.June 15, 2004