To: Jibacoa who wrote (661 ) 12/11/2003 1:58:34 PM From: dawgfan2000 Respond to of 1011 So is Qwest... Qwest launching Net phone service By Karren Mills The Associated Press MINNEAPOLIS — Qwest said yesterday it has begun offering Internet phone service to some customers in the Minneapolis-St. Paul area, marking the firmest embrace by a Baby Bell of a technology that could undermine the traditional phone business. Denver-based Qwest said it would expand the service to other parts of its 14-state area — which includes Washington state — in the first half of next year. The company would not provide price details. "The future of voice communications will be based on the Internet, and Qwest is excited to lead the way for customers," said Richard Notebaert, Qwest's chairman and chief executive. The technology, known as voice over Internet protocol, or VoIP, lets users make calls with a special phone or a regular phone connected to an adapter device. The phone or adapter is connected to a DSL or cable modem at the customer's home. In a traditional phone call, calls are converted to electronic signals that traverse an elaborate network of switches. Regional carriers get paid for calls that pass through their switches. Internet protocol converts a call into small packets of data — about 50 packets for every second of conversation — scatters them across the Internet, and reassembles them into sound on the other end of a call. The process can remove some network-access charges from the equation, leading to cost savings. Long-distance carriers and big companies increasingly use VoIP to route calls. And several companies are offering consumers VoIP service, sometimes with unlimited calling plans at monthly prices $20 and more below the competition, not including the cost of high-speed Internet service. But perhaps the biggest reason the technology threatens the Bells is that cable-TV companies are beginning to use it to offer phone service, enlarging the "bundles" they can sell to customers. Time Warner Cable announced such a plan Monday in conjunction with Sprint and MCI to fuel phone service in 31 markets — including Minneapolis-St. Paul. USB Warburg analyst John Hodulik described Qwest's move as "inherently defensive" and predicted that Qwest would see some of its traditional customers switch to the newer technology. "They're going to self-cannibalize, but the goal is to maintain the customer," he said. "So you'd rather make less money on a given customer but keep that customer versus having that customer switch providers." Hodulik said he expects other phone companies, including AT&T, Verizon and SBC, to make similar announcements soon. Because VoIP can link phone calls with other data, it makes several kinds of new services possible. Qwest said its VoIP customers would be able to: • Go to a Web site and view a call log of missed, incoming or outgoing calls as well as dial with the click of the mouse; • Specify call-forwarding locations for different groups of callers; and • Schedule calls to automatically forward to an alternate number during designated times and days of the week. Qwest also said customers eventually would be able to view and listen to voice-mail messages online. The Federal Communications Commission has named a task force to study whether Internet calls are subject to the same taxes and regulations as calls using conventional telephones. A federal judge in Minneapolis ruled in October that states should not be allowed to regulate Internet phone companies the same as traditional phone companies because doing so would conflict with federal law and could slow growth of the new technology. story.news.yahoo.com