cationic0
join:2002-02-05
Harleysville, PA
| [SunRocket] Bad news for SR and other VOIP? Verizon gets exempti
I just read in news.com that the FCC granted (by its inaction) a petition from Verizon to be free from regulations regarding what their charge their business customers. The story states that "the exemption gives Verizon the power to charge its business customers and competitive carriers, who use Verizon's local access network to connect to businesses, whatever it likes. That means prices for the use of the network could rise. Verizon, though, argues the move will lead to more competitive pricing and allow it more flexibility in serving customers."
Specifically, "for business customers, which buy services directly from Verizon, and competitive carriers, such as Level 3, Sprint Nextel and Qwest communications, which use Verizon's local network to sell services to business customers, prices for the use of this network could rise significantly, say critics."
I am wondering how VOIP providers, who use CLECs as part of the pathway for their service, will be affected by this? (Doesn't SR use Level 3?). |
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RockyBB
Premium
join:2005-01-31
Longmont, CO
| Re: [SunRocket] Bad news for SR and other VOIP? Verizon gets exe
to accurately your question we would have to be real deep into VOIP providers' shorts to know how their vendor contracts are structured. The VOIP provider which negotiated fixed pricing for a long term will be unaffected by downstream cost increases. The VOIP provider which buys effectively on the spot market, rides costs up and down.
Pricing to the consumer, which is our primary interest here, is based on supply and demand, with the additional axis of competition. My guess is that consumers will see no price increase as any access cost increases will filter down to individual consumers in terms of pennies, not dollars. |
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ptrowski
Got Helix?
Premium
join:2005-03-14
Putnam, CT
clubs: | reply to cationic0
Also interesting is how the front page said that Verizon Fios VOIP is on it's way...
Time to put on the tinfoil hats! 
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tc1uscg
join:2005-03-09
Saint Clair Shores, MI
| reply to cationic0
This would be just a bump in the road for Sprint-Nextel. As with MAN rings are already proving a very large savings in access costs, Sprint will just figure a way around. But then again, Verizon buys access too so it's a double edge sword.  |
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