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Vonage, a VT2142 and a RTP300, My Experiences - A Detailed Review
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Phone Service Coming To The Web


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December 10, 2003

By Tamara Gignac

Canadian cable companies are gearing up to roll out Internet-based telephone service -- a move that could shake up competition and drive prices down for consumers.
Rogers Communications -- Canada's biggest cable TV operator -- said Tuesday it expects to break into the telephone market in about a year, using voice-over-Internet technology in which voice signals travel over high-speed computer networks instead of phone lines.

Calgary-based Shaw Communications is also exploring Internet phone service as a means to handle voice traffic across its high-speed network in Western Canada.
"We're seriously looking into it, much more closely than six months ago," said Shaw president Peter Bissonnette.
The flurry of activity comes on the heels of U.S. cable colossus Time Warner's deal with long-distance providers Sprint and MCI to launch Internet-based telephone service.
Customers would plug regular phones into modems connected to the cable wire in their homes.

Internet-based phone service has been touted for years, but the concept is only beginning to gather steam among cable companies and telecommunications providers as call reliability and security improves.

"The early attempts at putting voice on the Internet was like talking into a toilet bowl. There was an echo," said Lawrence Surtees, a telecommunications analyst with IDC Canada. "Over time, the quality issue has been solved and the service greatly enhanced."

Despite the technology's promise, Canadian cable providers say they are taking a cautious approach because Internet calling is still a new and unproven phenomenon. As such, the industry has yet to establish a technical standard in North America to deliver phone calls across wide geographic areas.

There are other concerns, including the unavailability of telephone service during a power outage without a backup electricity source.

"Shaw and Rogers are ogling this stuff as the next frontier. But, even if they had the money to launch it today, they still have hurdles to face, cost being only one of them," said Surtees.

Cable firms are not the only players interested in offering Internet-based phone service. Vonage, a New Jersey-based telecom company, plans to aggressively market the technology in Canada to consumers and small businesses.
In the past two years, Vonage has signed up 75,000 U.S. customers who pay $35 US a month for unlimited local and long-distance calling anywhere in North America, although an adapter or router is required.

For Internet phone services to go mainstream, analysts say cable and telecom providers will have to legitimize the technology and offer economic incentives to propel the market, ideally in the form of lower bills.

Calgarian Christine Anderson, 28, is familiar with voice-over-Internet technology and is interested in putting her home phone calls online.

"I would try it, provided it cost less than my regular phone service and voice quality wasn't an issue," she said.
Atlantic cable company EastLink already offers TV, Internet and telephone service over its network using older circuit-switch technology. Other firms are investigating so-called Voice-over-Internet-Protocol (VoIP) technology, in which voice, video and data traffic are sent individually in packets.



 
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†AK and HI residents pay $29.95 shipping. ††Limited time offer. Valid for residents of the United States (&DC), 18 years or older, who open new accounts. Offer good while supplies last and only on new account activations. One kit per account/household. Offer cannot be combined with any other discounts, promotions or plans and is not applicable to past purchases. Good while supplies last. Allow up to 2 weeks for shipping. Other restrictions may apply.

1Unlimited calling and other services for all residential plans are based on normal residential, personal, non-commercial use. A combination of factors is used to determine abnormal use, including but not limited to: the number of unique numbers called, calls forwarded, minutes used and other factors. Subject to our Reasonable Use Policy and Terms of Service.

2Shipping and activation fees waived with 1-year agreement. An Early Termination Fee (with periodic pro-rated reductions) applies if service is terminated before the end of the first 12 months. Additional restrictions may apply. See Terms of Service for details.

HIGH SPEED INTERNET REQUIRED. †VALID FOR NEW LINES ONLY. RATES EXCLUDE INTERNET SERVICE, SURCHARGES, FEES AND TAXES. DEVICE MAY BE REFURBISHED. If you subscribe to plans with monthly minutes allotments, all call minutes placed from both from your home and registered ExtensionsTM phones will count toward your monthly minutes allotment. ExtensionsTM calls made from mobiles use airtime and may incur surcharges, depending on your mobile plan. Alarms, TTY and other systems may not be compatible. Vonage 911 service operates differently than traditional 911. See www.vonage.com/911 for details.

** Certain call types excluded.

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