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Vonage In The News
Vonage Holdings Corp. Reports Fourth Quarter and Full Year 2013 Results

Carolyn Katz Elected to Board of Directors of Vonage Holdings Corp.

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Vonage Pros and Cons for 2006
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Vonage, a VT2142 and a RTP300, My Experiences - A Detailed Review
Vonage, a VT2142 and a RTP300, My Experiences - A Detailed Review



Salt Lake City: impressions after several months
Salt Lake City: impressions after several months




Vonage Reviews

Lucky Warns Of End-User Broadband Expectations


Vonage In Print News

Lucky Warns Of End-User Broadband Expectations

March 31, 2004

By Loring Wirbel

SAN FRANCISCO - Former Bellcore and Telcordia Research head Robert Lucky warned of the end-user expectations for "free" service as a key factor affecting future telecom recovery.
At the keynote speech Wednesday (March 31) for the Communication Design Conference, Lucky said that free services have different and sometimes contradictory meanings in wireline and wireless environments. Using the example of Voice Over Internet Protocol's impact on circuit-switched voice service, Lucky said that the telecom market's primary problem is that "no one knows what anything costs."

"Telecom may be heading the way of DRAMs, where the price is set by the most idiotic competitor," Lucky said. "It's a race to the bottom, and the bottom in this case is free service."

Lucky said that he was concerned that Voip service providers like Vonage and Skype were forcing incumbent carriers to offer free Voip services, "like lemmings going into the sea." It may be true that end-to-end IP networks offer slightly lower costs than circuit-switched networks, he said, but user expectations of a free lunch mean that no one pays for infrastructure maintenance.

Lucky said that even though he spent his career in the telephony realm dominated by a centralized Advanced Intelligent Network, he believed in the inevitability of a dumb central fabric and intelligent end nodes. The overall costs may be more in a connectionless packet-switched network, he said, but the empowerment provided to end users makes IP a better system " provided end users realize that some costs must be borne by users and service providers to maintain backbones of the system.

One power of wireless networks, he said, is that they can come closer to a true free network, albeit not in the model of auctioning licensed spectrum. The 3G auctions in Europe ended up costing European carriers more than it would have cost to provide fiber to every end user in Europe, he said.
The real advantage of wireless networks will come in next-generation cognitive radio, adaptive antennas, MIMO systems, ultra-wideband systems, and other technologies that assume that waves in the same frequency band are not interferers " interference is merely a property of the receiver design. With broad spectrum re-use, future wireless services will win out by coming closer to the user's expectation of virtually free provisioning of service.

But will broadband growth slow in the future? Lucky said he saw some market saturation already becoming apparent in Asia, particularly in Korea and China. If bandwidth, storage, and processing are close to free, he said, then content will have to be the driver. Based on current digital rights management policies of organizations like Motion Picture Association of America and Recording Industry Association of America, he said, interest in broadband services will slow up, and citizens will be left with the fox (owners of content rights under the Digital Millenium Copyright Act) guarding the henhouse.

Two social visions are competing in deciding telecom's future, Lucky said. The "field of dreams" camp believes that end users should simply be provided with 100 Mbits/sec per user, and applications will emerge through capability. Social engineering camps believe that social goals, such as the desire to have half of all workers be telecommuters, should drive broadband policy. In either event, better models of how costs are borne by society must help determine policy, he said.

"We still can't say for sure, were we hit by a truly perfect storm, or are the characteristics of the telecommunications business just no good any more?" Lucky said.



 
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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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