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Re: More on Vonage service disruptions...

  • From: Network.Security
  • Date: Wed Mar 02 15:15:15 2005 much of the revenue stream is built around the actual
facilities (i.e. copper, fiber, etc) ownership monopoly?  Shouldn't
senior staff recognize the short-sightedness of building one revenue
stream from two distinct sources: one content delivery and one plant
ownership?  Sell access first for a profit and then add ala carte
services for a profit, don't mix them.

Brad Swanson

-----Original Message-----
From: [] On Behalf Of
Robert M. Enger
Sent: Wednesday, March 02, 2005 1:57 PM
To: Fergie (Paul Ferguson);
Subject: Re: More on Vonage service disruptions...

The subject is of most concern at the edge.
There are multiple long-haul providers, but often the consumer has only
one option for multi-megabit connectivity.

The entity currently enjoying the edge monopoly attempts to create
vertical service alignment, to maximize profit.
They DON'T want to provide packet data service, they want to provide ALL
services (control content, filter, etc).
This is not a technical matter, it's senior staff maximizing rate of

To diverge from VoIP, an interesting situation will present itself in
the future.  Verizon is installing FTTH.  Data offerings in their
present service area are: 5, 15, and 30Mbps downstream.
These speeds would support broadcast quality video delivery (even HD
quality)  if properly implemented.

As hot a topic as voice is, the total money involved is decreasing.
Video services, however, still represent a huge revenue stream.
Will Verizon be a pure pipe provider?  Or, will they attempt to control

It would be nice to see Comcast get some meaningful competition.
Till now, they could never find the money to upgrade or maintain their
RF plant, but they had money available to pursue acquisition of

As troublesome as VoIP may (appear) to be, imagine video.
Very high duty-cycle, multi-megabit streams.  "36ccs", so to speak.

But, content creators could sell directly to end users.
Potentially, no cable company, no TV networks.
Perhaps even the studio structure will collapse.

A lot depends on how well the FTTH providers, and their long-haul
backbone partners do their job.  Whether they embrace disruptive change,
or resist it as an annoyance to their routine.

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