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RE: VOIP Peering Questions



At 08:37 PM 6/1/2004, Dan Wing wrote:

> Like Duh :-)  If the call is IP end to end why would there be a
> per minute billing model?

I know you intended that as a rhetorical question, but the reason
is scaracity.  If there is a scarce resource:

Wing-San !!! so to answer your proper question what is the scarce resource.. obviously PSTN termination is a scarce resource however artificially defined that is by regulation.



* ports on a PSTN switch

granted


* water, gasoline, natural gas

well humm .. you are arguing the usage based model here which for SMPT and HTTP and FTP applications on IP has been proven not to work. Transit-Peering is more cost efficient then reciprocal comp any day of the week.


  * IP bandwidth
  * IP bandwidth of quality sufficient for realtime voice or
    video communications

bandwidth for VOIP is IMHO trival ..bandwidth for Video is not ergo buy more bandwidth. If we could only get Golbal IP Sound CODEC adopted more globally .. Its the default in SKYPE .


* ports on a DSLAM

dropping on a cost basis by the hour if my Chinese friends are accurate.



then it's legitimate to bill (or tax) for that resource *in some manner*.

PSTN resources yes... as I have pointed out to you several times the margins on DMS 500 or 5ESS are at least equal to Cisco 12000.. as unbelievable at that may be and due to the hollywood accounting so prelevent in the telecom industry. Its amazing how many times those assets can be depreciated.



The difficulty is in identifying what resources are, in fact, scarce and
will remain so, and building a business around it.  Everything points to IP
bandwidth being a non-scarce resource, but we aren't _quite_ to having
everything point to quality IP bandwidth being a non-scare resource.


Humm .. there we may differ ..what is "quality IP bandwidth" what you might say is best efforts..I could certainly argue that bandwidth expansion is easy so the argument you make is moot The Japanese YahooBB in particular have proven that as well as FREE.FR ..the opposite view is that carriers want to artificially restrict bandwidth or muck with the packets in order to charge a price differential for QoS I dont think that is going to fly too far tthough that is a view popular in Cable circles.

But who knows ..


> If the call must terminate on the PSTN then
> yes there is a legitimate reason for a "billling event"
...

-d


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>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Richard Shockey, Senior Manager, Strategic Technology Initiatives
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