How VoIP Makes Dedicated Loop DSL Reasonable

from the well,-look-at-that dept

For all the fears over the end of forcing the Bells to lease their lines, it looks like it might not be that big a deal. One of the biggest issues was supposed to be that competitive DSL providers, like Covad, could no longer lease lines and would have to go back to more expensive dedicated loop DSL offerings where they install their own equipment. This was the way those DSL providers started out, but it proved to be way too expensive. However, with the rise of VoIP, suddenly the competitive DSL providers are discovering that dedicated loop DSL can now be a lot more profitable. The expense of adding VoIP is not high (it’s just an application on the network, really), but the ability to charge more for it is clear. Even better, some of the RBOCs are still in this mindset where they need to keep their DSL offering bundled with their voice offering, making it much easier for competitive DSL providers to come in and offer “naked DSL” along with VoIP for a very competitive price. These competitive providers still face an uphill battle against the Bells, but it may not be as bad as some have made it out to be. If anything, it may force more innovation from both the competitive providers and the Bells.

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