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To: Frank A. Coluccio who wrote (1304)9/16/1998 8:27:00 AM
From: Stephen B. Temple  Respond to of 3178
 
Bell Atlantic puts out welcome mat for 'Net voice

September 16, 1998

Network World via NewsEdge Corporation :
While other local carriers want to squeeze as
much money as they can out of competitors
that sell IP telephony, Bell Atlantic has ta
ken a step toward keeping the service
low-priced.

Last week, Bell Atlantic agreed to make it
easier for IP telephony vendors to complete
calls on the company's regular voice network
via a new IP gateway service.

ITXC, an IP voice carrier that is piecing
together a worldwide IP voice network using
the Internet, private lines and multiple affil
iates, is the first Bell Atlantic customer to
use the gateway service that links IP nets to
Bell Atlantic's circuit-switched network .

Potential savings

Incoming international IP phone calls from
ITXC's network will be terminated at a Bell
Atlantic IP gateway in New York. The
gateway will dial up the destination phone
number on the public phone network and
patch the call through.

Before, ITXC had to maintain its own
gateway and access Bell Atlantic's network
over leased lines, according to Mary Evslin,
vice pr esident of marketing for ITXC. It
costs ITXC less in staffing and hardware to
hire Bell Atlantic to run the gateway, she
says.

Because Bell Atlantic's business is based on
providing reliable phone service, the
company is well qualified to run the
gateway, E vslin says. "They're better at
running a voice network. They know how to
do commercial phone calls, " she says.

In addition, the service lets ITXC focus on
the IP end of phone calls, which is ITXC's
main business. "We're trying to establish an
IP voice network where currently there is
none," Evslin says.

The service handles only inbound calls
destined for Bell Atlantic's network, not
those originating from phones within the
company's network.

But Bell Atlantic is considering such an
origination service, according to Hardy
Moebius, director of business development
for Bell Atlantic's carrier services division.

The goal will be to price the service
somewhere between the access fee IP
telephony vendors pay now - nothing - and
the full 2 to 3 cents-per-minute access fee
the regional Bell operating companies charge
long-distance carriers.

While BellSouth is trying to apply the same
access regulation to IP telephony vendors
that it applies to long-distance carriers, Bel l
Atlantic recognizes that IP telephony is
different from traditional long distance, and
is working on an alternative way to charge
access, Moebius says.

The service Bell Atlantic has in mind would
route calls onto IP networks and give the IP
telephony vendor call information needed fo r
billing, he says. The IP telephony vendor
would pay for that service.

"Now we have to deal with, 'How do we
charge for this?'" Moebius says. He could not
say how close Bell Atlantic was to answering
the question, but the company is studying
various pricing models.

RBOCs want to charge ISPs an access fee
primarily because data calls to ISPs tie up
RBOC networks far longer than typical voice
cal ls. But so far, the Federal
Communications Commission says RBOCs
cannot charge an access fee for those data
connections.

However, the FCC says it sees no distinction
between a circuit-switched voice call and an
IP voice call. The FCC has fallen short of
explicitly sanctioning access fees for IP
voice service providers.

<<Network World -- 09-14-98, p. 16>>

[Copyright 1998, Network World]



To: Frank A. Coluccio who wrote (1304)9/16/1998 11:39:00 AM
From: Stephen B. Temple  Read Replies (3) | Respond to of 3178
 
Anyone: So what's so difficult about coming up with a solution that all can live with?

If you consider letting the LD's have all "Local-LongDistance-Telephony" operations, the RBOC's have it all
"Local-LongDistance-Telephony" operations, and the ITSP's have it all "Local-LongDistance-Telephony" operations. (easier said than done?)

There are "reciprocal compensation" boundaries for all....right?

If the RBOC's tap into IP via ITSP's, then the LD's using ISP's will show their support for an open switch-packet market, without restraints!

The FCC should not dare "hint" at other possibility like the one currently churning: "we will charge ITSP's on a case-by-case basis".

That statement only serves to "fueling the IP fire"

ST