Net phone hang-ups looming?

[Dave Farber <dave () farber net>]

Net phone hang-ups looming?

By Ben Charny
Staff Writer, CNET News.com
January 27, 2003, 4:00 AM PT

A group of telecommunications giants is quietly pushing a proposal
that could create hang-ups for up-and-coming Internet-telephone
rivals.

At stake are rules used to divvy up the 5.2 billion unassigned phone
numbers set aside for use in North America, one of the biggest
potential markets for Internet, or voice over IP (VoIP), telephone
services.

VoIP technology allows people to make phones calls that travel over
the Internet rather than solely across wires owned by long-distance
phone companies. Such calls can be made from telephone systems that
tap into the Internet, and from PCs.

The cost of making such calls is significantly less than that of
basic long-distance service because the calls bypass the phone
companies' lines. As a result, many large corporations and tech-savvy
consumers are using VoIP to make long-distance calls.

Net telephony providers such as Vonage and Net2Phone enjoy an
unfettered stream of new numbers passed down from other carriers,
which they can hand out to customers as they wish. Now, Verizon
Communications, BellSouth and Qwest Communications International want
federal regulators to tell the newcomers to heel.

...

http://news.com.com/2100-1033-982130.html


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