The VOIP Provider Guide

For those of you with a traditional wireless provider, the cost of your monthly bill is likely a bit more chafing than you’d desire. It’s not just the price though. The services are usually subpar and these companies have an attitude that they can do whatever they want to keep you in their pocket.

So, it’s little surprise that when the first details of a mobile VoIP solution surfaced in the last few years, the major phone companies started putting all their energy into blocking the technology from being used on their phones. Today, however, court orders and lucrative business ideas have started to reform how these companies approach Mobile VoIP, if only because they have no choice – this is the future of telephone service.

T-Mobile’s Truphone Dilemma
First up is T-Mobile, the telecom giant that went the extra mile to actually block instant messaging and VoIP from being used on their phones altogether. In a move that VoIP enthusiasts have likened to Gulag crackdowns on capitalist literature, T-Mobile hoped to put a stop to the use of their cheaper data plans to make free phone calls in metro areas. Well, they decided to go a step further and block Truphone altogether, a major mobile VoIP provider. Last month they made it impossible for Truphone users to actually dial a number, giving them a prerecorded, “I’m sorry, but…” message.

Their reason is cryptic, claiming that Truphone charges a termination fee that they have no right to charge because they don’t run a physical mobile phone network. However, regardless of the reason, the laws in the UK (where this happened) require that all phone companies connect all calls from all phone services. If they stopped doing so, communications would break down across the nation. The laws are not written for VoIP providers though, referring directly to mobile phone companies and their right to charge this fee. It creates a slightly grey area as to whether phone companies can truly discriminate against those they do not deem true “mobile” carriers.

Fast forward a month or so and a judge spoke on the matter, actually forcing T-mobile to open its lines and allow Truphone calls. As Truphone’s CEO, James Tagg, says, “The injunction is good news not only for Truphone but for every company trying to develop internet-era services and for every consumer wanting freedom of choice and lower prices.” The ruling went into effect starting July 23^rd and will effectively force mobile companies in the UK to allow VoIP usage.

AT&T Being Sly
It’s no secret that AT&T is a couple of decades behind the curve. No one was more shocked than me when they got the nod from Apple for the new iPhone, arguably the slickest and most “now” gadget on the market right now, two words that have never quite fit with their overall image. However, they run a good percentage of the nation’s telecom service and have done so for decades, even despite a major anti-trust breakup in the 1980s. So, you can’t argue with their business practices in terms of effectiveness.

Unfortunately, they seem to be yet another of the companies that has decided to ignore the burgeoning new technology of VoIP and stick to their laurels and traditional phone services. Effectively locking out the uber cool new iPhone’s ability to use third party applications for phone service by making the $600 phone an overpriced paper weight if you do not sign up for AT&T’s service, VoIP is useless. Furthermore, the next generation of Nokia’s N and E series smart phones has been on the rocks lately, partially because of their advanced and openly transparent ability to use such applications for free calls.

It remains to be seen what their official stance on the matter is, but so far, AT&T has run with its tail between its legs from new technology as best as it can. Unfortunately, they might have missed the memo on this one.

Sprint and Verizon Jump On Board
They are not the first major companies to get involved in the VoIP transition, but they are the most notable. Verizon’s land line VoIP service, coupled to their often times mediocre broadband internet service has been riding in the middle of the pack for a couple of years now, but with a recent deal penned with Microsoft to couple their wares with Live Maps and a growing user base, they might finally be making headway.

Sprint, for their part, has jumped on board and become the first of the big four service providers in the US to include some form of VoIP service on their phones. Already a leader in the mobile broadband field, Sprint has now introduced a phone that accesses WiFi hotspots (no, it’s not new, but they like to pretend it is) to make unlimited calls. They advertise it as an at home phone, but charge only $9.99 a month for the service and are clearly taking those first steps in an industry that is still mostly populated by third party applications and open source programs.

Next Stop
It’s impossible to know whether the major phone companies will continue to fight the growth of technology. Companies often tend to do just that all the way up until they realize that they can make money through growth (hybrid cars anyone?). Really, it’s just a matter of figuring out when companies like AT&T and T-Mobile will realize that they can make money by exploiting new technology and offering more options to their users. Plus, VoIP access costs them less to support.

This entry was posted on Tuesday, July 24th, 2007 at 10:24 am and is filed under VOIP Advice. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.