« Mobivox Acquisition Adds Voice Interface to SabSe's Portfolio of Services | Main | OrganIP Turns Social Networks Into Phone Books »

09/25/2009

AT&T Call Blocking Attack Reveals Google Voice Structural Problem

AT&T's recent letter to the FCC about Google Voice was obviously disingenuous. It tried to link network neutrality, a key Google crusade, with Google Voice's blocking of certain calls. In reality, there was little connection except the politics involved: The real goal of the communication was to paint AT&T as on the side of network openness, and Google as on the opposite side. But the letter did inadvertently bring to light a potentially major weakness in the Google Voice model: the fact that the free service has to pay to have its users' calls delivered to their destinations on the PSTN (public switched telephone network).

The AT&T letter specifically noted that Google Voice doesn't deliver calls to certain numbers and area codes, and argued that it "would appear to be" prohibited from doing such blocking by the rules the agency's Wireline Competition Bureau applies to phone companies. The letter then argued that if Google Voice is an Internet application rather than a phone company, it is violating the agency's network neutrality rulings by blocking access to other providers – even though the other providers in question are traditional phone companies, and not the providers of Internet services that network neutrality provisions aim to protect. In short, AT&T's letter, complete with scholarly citations and footnotes, was about scoring political points with a blizzard of authoritative-sounding but ultimately disconnected arguments.

Still, it brought the first public attention to Google's need to pay other phone companies for delivering, or "terminating," calls. Such payments represent a significant factor for Google Voice, because they are a built-in cost. Most VoIP providers cover such costs by charging $20 or more per month for unlimited domestic calling. But as long as Google Voice remains free, it will have to find another way to pay for termination. And that may be one reason the service has remained in beta for so long: It hasn't yet figured out how to do so.

Comments

I had tacitly assumed that GV has to pay termination fees. How could it not? Additionally, if Magic Jack can be used as a reference model, then the yearly cost of such termination can be bounded by $20, indeed it should be much less because, that amount includes MJ's profit margin. I would think SMS charges may dwarf voice termination charges.

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Comments are moderated, and will not appear until the author has approved them.

Resources

  •     A selection of free documents for download to help make purchasing decisions when shopping for a business phone system.
  •      Get customized price quotes on a business phone system from top vendors.

Reports

  • SMB Video Conferencing: Getting Beyond Clouds & Interoperability
         This 31-page VoIP Evolution report provides an in-depth analysis of a market that has suddenly become very competitive. It identifies and dispels some of the misconceptions that have become part of the conventional wisdom surrounding SMB video conferencing. Chief among these are unrealistic expectations regarding the cloud approach and interoperability.
         The report provides an innovative approach to analysis by illustrating that these issues are just two of many important factors that differentiate solutions from one another. The report surveys 10 Companies to Watch and compares 16 cloud solutions using a unique Differentiation Matrix that clarifies their strengths and weaknesses.

  • Voice Over LTE: More Pitfalls Than Promise for Now
        This 18-page Heavy Reading Insider report, written by Robert Poe, analyzes the prospects for delivery of voice calls over cellular networks using LTE (long-term evolution) 4G wireless technology. Operators are originally looking to use LTE mainly for mobile data services, since a number of technical issues make delivering voice traffic over LTE complicated. The report describes the various options available to operators, and explains why they are likely to move to voice over LTE later rather than sooner. Information about the report is available at Heavy Reading 4G/LTE Insider.

  • Making HD Voice Happen: Choosing Codecs, Connecting Islands
        This Heavy Reading Insider report by Robert Poe evaluates the impact HD voice will have on voice services providers ranging from traditional telcos to cable MSOs to cellular carriers to VoIP operators. The 20-page report also analyzes the role vendors' and providers' choices of codecs will play in ensuring that HD voice services can be delivered end-to-end, rather than only within individual providers' or enterprises' networks. It also surveys the HD voice efforts of 14 vendors.
        Information about the report is available at Heavy Reading Insider. A column about the report is available at Light Reading.

  • Disruptive VoIP Services: What Carriers Need to Know
        A report by Robert Poe for Heavy Reading, analyzing the innovative VoIP services with the most potential to disrupt the telecom services market over the next three to five years.
        The 57-page report describes the changes VoIP innovation brings to telephony models, practices and concepts. It identifies 17 categories of potentially disruptive VoIP services, and analyzes their potential impact on the market. It also profiles 50 potentially disruptive companies and services.
        Information about the report is available on the Heavy Reading Website. Coverage of the report is available on the Light Reading Website.


Tag Cloud