Will Telcos Get To Charge VoIP Providers For Call Termination?

from the questions,-questions,-questions... dept

With all the hype over VoIP, Om Malik is pointing to one thing that has the potential to seriously damage many VoIP providers' plans. The FCC might deny Level 3's petition to be exempt from termination charges (though, they may add further exemptions as well). The issue here is that the VoIP providers don't pay termination fees to telcos for calls that end up on their network. The telcos, obviously, would like them to pay up -- which would significantly increase the costs for VoIP providers, in turn increasing the fees for VoIP service, taking away much of the "benefit" from the existing sales pitch. Of course, it's not clear the FCC would actually let it get that far, but there's obviously room to be concerned. Once again, you have to wonder why the VoIP providers don't open up their networks and build a developer community. Letting those developers come up with useful apps would create value beyond just "cheaper phone service."


Reader Comments (rss)

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  1.  
    identicon
    Ofyork, Mar 19th, 2005 @ 6:04am

    Didn't get story, But got comment.

    The internet has two parts content and knowledge and all that's in between- the communication and connections for the transfer of knowledge.

     

    reply to this | link to this | view in thread ]

  2.  
    identicon
    Billy J. West Jr., Mar 19th, 2005 @ 7:04am

    Why should VIOP providers get a free ride?

    The issue here is that the VoIP providers don't pay termination fees to telcos for calls that end up on their network.

    Good God! Why should the telcos not get paid for the use of their network? Believe it or not, it does cost the telcos money when their network is used. Granted, they most likely will overcharge way more than what it actually costs.

    I think they should forced to open their network and to charge a reasonable rate. Say no more than 5% to 10% over actual costs.

    Bill..

     

    reply to this | link to this | view in thread ]

  3.  
    identicon
    Anonymous Hero, Mar 19th, 2005 @ 2:39pm

    Re: Why should VIOP providers get a free ride?

    How are they getting a free ride? They already pay the going rates for the phone lines they use and the telcos now want to add additional per minute charges on top of that.

     

    reply to this | link to this | view in thread ]

  4.  
    identicon
    vic, Mar 20th, 2007 @ 3:33pm

    NationwideLD

    This is why I think that the obvious option in the future for VoIP is to have a synergy with the telco companies. That's where I see the future of VoIP technology. Nationwide Long Distance

     

    reply to this | link to this | view in thread ]

  5.  
    identicon
    john, Nov 8th, 2007 @ 11:59pm

    VOIP

    I dont think they should be allowed to charge for early termination. Actually if there is a contract the consumer should abide by it. High speed internet companies are in full force and this helps http://ds3providers.com to succeed.

     

    reply to this | link to this | view in thread ]


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