That is pulling the plug on POTS. You know that little jingly thing your mother and grandmother still use at lifeline rates? Yes its still out there but dwindling by the day. So what happens? –

In response to a Notice of Inquiry released by the FCC to explore how to transition to a purely IP-based communications network, AT&T has declared that it’s time to cut the cord. AT&T told the FCC that the death of landlines is a matter of when , not if, and asked that a firm deadline be set for pulling the plug.

AT&T tells the FCC that supporting traditional POTS landlines is impeding investment in broadband, VoIP, and wireless services.AT&T said in its response to the FCC that “with each passing day, more and more communications services migrate to broadband and IP-based services, leaving the public switched telephone network (”PSTN”) and plain-old telephone service (”POTS”) as relics of a by-gone era.”

It also stated “It makes no sense to require service providers to operate and maintain two distinct networks when technology and consumer preferences have made one of them increasingly obsolete.”

Is AT&T right? Yes. The fact is Central Office based systems have long lead times and nearly as long tax treatment. Most of the majors were using 19/20yr MACRS or ACRS depreciation on the capital investment as that was agreed to by both the industry and the IRS as appropriate, circa 1950’s. Little has changed on that front ever since. But that poses a problem for say Version who just put a new CO remote in 5 years ago. (Rare as that is.) So how would that install be treated? Under the current rules an accelerated recapture would take place for junking the equipment. That’s a major hit when you consider that even today CO investments are in the billions. So the Telcos would push for tax relief if devaluation ever happened.

My gut says not so fast. Even though what AT&T says is true I have the tingly feeling in the back of my head that it won’t work out that way. AT&T would take the revised recapture relief to the bank, not do any more R&D/advanced services/VOIP/network upgrades, then cry poor mouth all the way into the CEO’s pocket. I am not against AT&T, its just how these guys have operated for years. I have been in the belly of this beast to know better.

There of course is another fly in the ointment to a devaluation of CO networks. I call it the other 1200. That is approximately how many phone companies there are in this country. Most are small operators, functioning as COOPs in rural territory that none of the majors even want to touch. At a minimum there would have to be some sort of relief offered to these companies. At a minimum most would require a DSLAM to get their customers on to VOIP. Most likely SBA enhanced funding would have to be offered at 0% interest to these companies. To date I have not heard of any plans to do so.

Devaluing the POTS network has to happen. We need to realize that as soon as possible. We also need to make sure that in the switch serious profit taking does not occur. Compensation where needed, support where required, but in the end it should be a net-net wash.

Linky.

eBay’s plan to spin off Skype with an initial public offering in 2010 is being threatened by a dispute with the VoIP service’s co-founders, who still own a key part of the software.

Bloomberg reports Skype’s founders Niklas Zennstrom and Janus Friis have accused eBay of breaching a licensing deal and are threatening to yank the technology, which would disable the popular voice over internet service.

In return, eBay is suing Joltid, the company operated by Skype’s founders, in a London court to prevent the shutdown.

The Skype founders apparently retained the service’s peer-to-peer sharing technology when they sold to eBay for $2.6bn in 2005. (Which, of course, begs the question why eBay would pay all that money without ensuring they own the entire platform).

Well smart business people always work to sell the cow but license the right to the milk it produces. That appears to be what is happening here with a legal scuffle between Skype founders and eBay. So when Meg Whitman, who was the CEO that brokered that deal, plunk down the money she did not read the fine print on what she was really buying? Certainly appears that way regardless of the outcome of the lawsuit.

Would be a real blow to eBay if they lose. The value of the Skype property that they are trying to spin off would be worth less if the buyer has to pay royalities to the two gents owning the technology. Any buyer worth their salt would know this and only pay accordingly. For what they would really be buying is just the customer accounts and IT infrastructure.

There are still some fun things to watch in the IT biz.

Linky.

Yes, it is not like when they were riding high Skype could care less about being interoperable. Fact they were down right rude about it, setting trip wires in their own systems so third parties could not use the IM capabilities, etc. But oh now that they might be spun off and have to make a profit they come sniffing with a call for ‘interoperability’ because they smell cash in corporate accounts. –

In particular, Skype wants support for Skype calls that come in to businesses using PBXs that support Session Initiation Protocol (SIP) trunking, said Stefan Oberg, general manager and vice president of Skype for Business “This is an area where we’d like to cooperate with you.”

Skype has announced its Skype for SIP capability that would make the link between its calls and corporate PBXs. Oberg was seeking cooperation to make interoperability easier for corporate customers. Skype has also issued Skype for Asterisk, which enables using Skype client software as softphones in businesses that use open-source Asterisk IP PBXs.

Oberg saod the company is building a stable of channel partners who will sell Skype to businesses and developing a premium support service that businesses require in order to ensure uptime for their communications. That will include local tech support with staff that speaks the local language, he said.

The company is also working on a business control panel, software that will enable a business to buy Skype credit and distribute it among individual users within the business.

I have only one thing to say to Skype. —

You are late to the party. You want to play now YOU interop with the standard, not the other way around. You had the opportunity to have your say in the matter years ago but decided not to play. Well tough. Play with the cards you dealt yourself. The world does not owe you favors. SIP is now the defacto standard live with it.

The gall.

Linky.

We had alluded to the fact that third party VoIP modules on smart phones won’t last long, here. Well it looks like it is just about there. The folks at Google and Microsoft have blinked. Don’t discount the Telcos they have the best legal talent that phone call money can buy. –

surrender_itsgregIf you think Google, Microsoft and Apple are bad-ass, cutthroat, take-no-prisoner companies, you should meet the nation’s wireless carriers, who have collectively convinced those intensively competitive software giants to cripple their products.

Need any more proof that the nation’s four largest wireless carriers - AT&T, Verizon, Sprint and T-Mobile - have too much control over the airwaves, what phones you can use and what applications you can run on them?

Look no further than Microsoft’s release this week of its 12 commandments for developers (.pdf) working on apps for the upcoming Windows Mobile 6.5 OS and for its Windows Mobile Marketplace — it’s upcoming iPhone app store competitor. Number 4 rule? Don’t make apps that let users make phone calls using the mobile phone carrier’s data connection.

That restriction joins Microsoft to Google and Apple, all of which now all block true VOIP apps in their online marketplaces where users can quickly buy trusted apps from third-party developers. That means no Skype, or at least only Skype when your iPhone has a WiFi connection, or only Skype-Lite which uses your phone’s minute plans.

This was to be expected from the commercial side of the IT industry. I hope at this point Google fully understands exactly WHY they needed that 700mhz spectrum now. You can rest assured that the smaller smartphone development houses won’t take up this cause. They don’t have the financial-legal wherewithal to go into protracted court combat.

Nope the challenge will come, if at all, from overseas. Some Indian dude will whip up an app for Android that will use the data channel for voice traffic. It will leak out and take hold for a certain segment of the population. The problem will only be resolved if such a piece of software were to come on like gangbusters. Like it started on 500 smartphones today, its on 5,000,000 by the end of a month.

So much for open competition.

Linky.

A tipster — a very reliable one — tells me that Skype is almost ready to launch that iPhone version, perhaps as soon as next week. CTIA Wireless, a large mobile industry trade event, kicks off in Las Vegas next Wednesday, so perhaps the announcement will be made there. I am working on getting more details, as well as screenshots of the service.

The biggest clue about Skype’s pending iPhone launch came when iSkoot decided to move on from its Skype-centric strategy. The company had been offering a client that allowed cell phone users to use Skype services. Skype already offers a Windows Mobile version of its client.

As I’ve said before, Skype will have to turn to mobile to keep its growth intact. In recent months, many services, among them Truphone and Nimbuzz, started supporting Skype in their communication clients. However, a standalone Skype client would get a lot of traction among the Skype faithful. In the meantime, I think Skype is slowly flexing its muscles and swatting away little VoIP players with some of its recent moves.

An interesting move by Skype. One that makes sense. One that is good for the end customer too. You pay Skype’s rate for an international call rather than AT&T’s rate. The question I have is how long will AT&T let that persist before they find some way to get their ‘tax’ in on the deal?

The bigger qualm is Skype itself. While the rest of the VoIP industry is coalesced around Open Standards, Skype continues to play Microsoft with it protocols. For the system as a whole it is just not good practice and does not foster interoperability.

Linky.

Google has foisted a name change on the old GrandCentral service that they bought several years ago but did nothing with. Oh and still have done nothing with. Don’t even bother going there unless you already have a GrandCentral account. They have not opened up the service yet to other users –

Google Voice is the name of the updated version of GrandCentral that runs on Google’s infrastructure. At this time, the service is only available in the US to the existing GrandCentral users, but Google promises to extend its availability soon. The good news is that GrandCentral will continue to be free and you’ll only have to pay for international calls.

“Google Voice gives you one number for all your phones — a phone number that is tied to you, not to a device or a location. Use Google Voice to simplify the way you use phones, make using voicemail as easy as email, customize your callers’ experience, and more. Google Voice isn’t a phone service, but it lets you manage all of your phones. Google Voice works with mobile phones, desk phones, work phones, and VoIP lines. There’s nothing to download, upload, or install, and you don’t have to make or take calls using a computer,” explains the new help center.

Google Voice Blog mentions that the service added many new features: “voicemail transcription, SMS support, conference calling, GOOG-411 integration, low cost international calling”. Voicemails are now searchable, you can embed them in a web page and you can receive email notifications. Text messages sent to your Google number are automatically forwarded to your mobile phone and they are also available in the web account, where you can reply to the incoming messages.

Sounds nice, but I can’t use it yet.

Linky.

In an interesting move the Skype folks are releasing the SILK codec that is part of their new 4.0 platform. Now we know why that is, encourge all those third parties to write code to it. –

The wideband codec recently debuted as part of Skype 4.0 for Windows (with a Mac version coming in April.) With a claimed 400 million Skype users registered worldwide, the VoIP provider is apparently none too concerned about handing the competition keys to the kingdom without the usual charges.

Skype says it’s offering the licenses gratis to “establish a new industry-wide standard in speech processing,” ranging from web developers to chip manufacturers to mobile device makers.

SILK transfers audio between 8kHz to 12kHz - at least, that’s what Skype said, but we assumed it means 8Hz; thanks to all the readers who spotted the inconsistent numbers - compared with the 300Hz to 3.4kHz signals from most telephone companies. That means the conversation will sound clearer and more life-like, assuming both ends are using the codec.

Requiring SILK at both ends (and in between) will probably be the first hurdle for it to catch on with hardware manufacturers. If there’s a link in the communication chain not supporting wideband telephone, both sides get the same old lacking quality. But as Skype notes in the company blog, if you want to establish a new industry-wide standard, removing the cost is certainly a good start.

For Skype it is a good move. Now how about a new Linux upgrade while you are at it??

Linky.

Yes, you know who you are. You worry about EM radiation from toasters and late night knocks on the door from MaBell Phone Cops. Well you might be able to rest a little easier if you start using Skype. Especially if you can get on an European server –

The spybiz exec, who preferred to remain anonymous, confirmed that Skype continues to be a major problem for government listening agencies, spooks and police. This was already thought to be the case, following requests from German authorities for special intercept/bugging powers to help them deal with Skype-loving malefactors. Britain’s GCHQ has also stated that it has severe problems intercepting VoIP and internet communication in general.

Skype in particular is a serious problem for spooks and cops. Being P2P, the network can’t be accessed by the company providing it and the authorities can’t gain access by that route. The company won’t disclose details of its encryption, either, and isn’t required to as it is Europe based. This lack of openness prompts many security pros to rubbish Skype on “security through obscurity” grounds: but nonetheless it remains a popular choice with those who think they might find themselves under surveillance. Rumour suggests that America’s NSA may be able to break Skype encryption - assuming they have access to a given call or message - but nobody else.

The NSA may be able to do that: but it seems that if so, this uses up too much of the agency’s resources at present.

“They are saying to the industry, you get us into Skype and we will make you a very rich company,” said the industry source, adding that the obscure encryption used by the P2Pware is believed to change frequently as part of software updates.

Enjoy. Oh by the way, your hat is a little crooked.

Linky.

I say that for one reason. I was there 5 years ago when the Verizon VP pushing the development of this product could not understand the question I posed then — “Considering that 80% of all homes in the US only have satin cable wiring in most of the rooms. How do you expect this product to be useful? Nobody will pay $1000 to have their home rewired for a $200 item.” (For the phone to work requires a CAT 5 cable.) Like the Sprint commercial said, you could hear a pin drop. Sadly the VP at the time did not understand either the question or the market challenge being offered. –

Since times are getting harder and people look for various ways to tighten their belts without affecting one’s lifestyle by too much, how about taking a look at how many phone calls you make from home each month? Instead of relying on calling cards, how about making use of your existing broadband connection and utilize VoIP technology instead? Verizon has a new Hub to cater to such a crowd, being an intuitive device that puts a communications command center in the home while merging both wireline and wireless connectivity. It doesn’t matter whether you’re running on a broadband connection supplied by Verizon FiOS Internet, DSL or any other high-speed service provider, the Verizon Hub works with them all.

Looks like it has not changed from what I saw demoed that many years ago. So is it a bad idea? No. Great potentinal for it in homes and SoHo situation. Even as a nightstand phone to replace your clock radio/alarm clock/phone it would be great. But the problem is that last scenario will only happen in new construction.

Great product with a bad realization of the infrastructure that represents its market barrier.

Linky.

For the benefit of those unfamiliar with Telco terminology. Satin cable is a 8 conductor wiring encased in a ovoline sheath, generally grey. The sheath has a satiny look and feel to it hence source of the term.
That cabling works fine for an analog phone system that is in most existing home construction. Data cable however is called generally ‘4 pair twisted’ of a given CAT X rating. Satin cable can’t even be rated and the sheath style does not lend itself to being encased in a standard CAT rated plastic plug header.

I think you get a glimmer of the fundamental basic that is missing with the offering Verizon is proposing.

Well it is if you start reading some forums and web sites. Some are saying that VoIP traffic will be affected. Generally false. Others are saying that the efficiency of the internet will drop as a consequence. False. First the announcement off the Torrent website for the new UDP based client –

New alpha! The main change is that uTP (UDP torrenting) is added and enabled by default. It also has real-time transfer rate control and latency minimization.
This build will probably download slower than 1.8.1, particularly if the entire swarm is 1.8.1.

This whole thing has been a boil for about 2 years now between Torrent users and network ISP’s in their use of network capacity. We have had FCC endorsed round tables on the situation. Its finally come to head with Bell Canada impacting P2P traffic altogether. The result is that the Torrent developers have built a UDP based client to get around it. What the ISP’s don’t understand is that they are on the short end of the stick here from a technology perspective. The developers have the upper hand in any tech war. Example? Well how would ISP handle a Torrent client that did the following –

• Stored the existing client protocols table.
• Randomly remapped that table for its own purposes.
• Started a faux spread spectrum-like bounce across the breadth of the protocols table between the seeders and the receivers
• Upon competition restores the saved protocols table back to the system

Its not fool proof. But it is sufficiently involved that it fiscally escalates the costs on the ISP’s side that they just cry uncle. It is not a road we as a global society should go down. Its like restricting free speech.

The other trend I am seeing is the lack of understanding by many in the press on this issue. As a data transmission layer, UDP is MORE efficient than TCP. UDP institutes a full data stream with no framing checks. It just streams till EOF. But there is no checking for data integrity of the file. TCP on the other hand checks blocks of packets for receipt till the whole file sent. In some cases it adds up to 20% overhead to the transmission. So if you were doing a torrent you would WANT them using UDP.

The other falsehood is that VoIP traffic would be impacted. Hate to say it, probably not true. Two protocols dominate the VoIP world — SIP and SSCP. Well SIP uses TCP for build up and tear down of the connection and either TCP or UDP for the transport. The split being about 50/50. If its a problem, providers can switch to a pure TCP transport. SSCP uses TCP for build up and tear down of the connection and only UDP for the transport. But SSCP is generally associated with Cisco CallManager installs. So most of the UDP traffic is intrabuilding, like in call centers. The outbound traffic being wrapped in TCP or TCP-VPNd traffic, building to building.

The solution? How about some profit? The P2P client providers should cooperate with the ISP’s and provide a means to a) strip the traffic easily and b) forward store the traffic on end nodes like Akamai. The ISP’s cooperate by providing a premium data channel that P2P traffic can ride on. The users pay for the privilege. Profits are split by all concerned.

I prefer this solution over data caps.

Linky.