Continuing from “How to Count”, I have confirmed that Yahoo!BB ADSL service now includes access to VoIP service with usage charges. (Page 33). The DSL modem has a built-in ATA. A couple of interesting aspects of their services are that their service is not “nomadic” and it is not intended to displace PSTN. Indeed, it uses PSTN for failover and emergency services. The ARPU for the phone service is 1100 yen per month based on a charge of 7.5 yen per minute. If my arithmetic is right it comes down to 2B minutes per month. When it comes to service providers that bundle access and VoIP interconnect, the usage is a more accurate measure.
Do me a favor and note down your immediate reaction as you read the following question: Suppose the incumbents roll out DSL along the lines of Yahoo!BB, meaning that they bundle VoIP with DSL and PSTN. Would we continue to say that VoIP should be unregulated? If so, have we become the front men for the incumbents?
Posted by aswath at December 9, 2004 05:56 PM
No, because even "unregulated" businesses are still constrained by normal tort, contract and competition law. Unfortunately, they seem to be able to bypass these as long as they are regulated.
So a monopoly provider that insists you buy Product B with Product A (for which they have a monopoly) would fall foul of competition law. (Am I an optimist or what!)
If they are a duopoly with market power and supernormal profit, then the real issue is the protection of new entrants from predatory pricing.
Once you separate application from service, and have the open IP standard for interconnect, there is no longer anything special about telecom -- no winner-takes-all network effect. So deregulate away, and beef up the government competition lawyers.
Posted by: Martin Geddes at December 10, 2004 03:58 PM