Tuesday, March 02, 2004


Collapse of Denial

Clay Shirky writes:
[Embracing VoIP] means admitting to everyone -- shareholders, regulators, customers -- that both monopoly control and artificially high voice revenues are going away . . . As a result, [incumbent LECs] will likely try to convince regulatory agencies, both the FCC and the states', to burden competitive VoIP firms like Vonage with additional costs and rules, while delaying their own offerings.
Plan A is "Replace the phone system slowly and from within,"
Plan B is far more radical: "Replace the phone system. Period."
. . . the phone companies are overestimating the threat of Vonage (which also wants to charge users to talk to one another) and underestimating the threat of Skype (which doesn't.) [If incumbent LECs] succeed in killing off their Plan A competitors, they will strengthen the far more radical challenge from Plan B.
Exactly. I think Chairman Mike understands this too.

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