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Internet telephony: Costs,pricing, and policy
Institution:11. Lee McKnight was Principal Investigator of the MIT Internet Telephony Consortium (http://itel.mit.edu). In September 1998, he will become an Associate Professor at Tufts University, Fletcher School of Law and Diplomacy, and will maintain an involvement with the Internet Telephony Consortium. Lee may be contacted at MIT, 77 Massachusetts Avenue, Room E40-235, Cambridge, MA 02139, USA Tel: 1-617-253-0995; fax: 1-617-253-7326; email: mcknightrpcp.mit.edu. Brett Leida has completed his Master’s thesis for the Technology and Policy Program and Electrical Engineering and Computer Science, and has begun a Ph.D. program at MIT. He is currently a research assistant with the MIT Internet Telephony Consortium.;1. Çukurova University, Science and Letters Faculty, Department of Chemistry, Adana 01330, Turkey;2. Kilis 7 Aral?k University, Science and Letters Faculty, Department of Chemistry, Kilis 79000, Turkey;1. Department of Physics, Pamukkale University, Kinikli Campus, 20020 Denizli, Turkey;2. Department of Material Science and Engineering, Texas A&M University, College Station, TX 77843-3003, USA;1. J. Heyrovsky Institute of Physical Chemistry, Czech Academy of Sciences, Dolej?kova 2155/3, 182 23, Prague 8, Czech Republic;2. Department of Inorganic Technology, University of Chemistry and Technology Prague, Technická 5, 166 28, Prague 6, Czech Republic;1. School of Physics, Universiti Sains Malaysia, 11800 USM Penang, Malaysia;2. Physics Department, College of Education for Pure Science, Tikrit University, Iraq;3. Institute of Nano Optoelectronics Research and Technology (INOR), Universiti Sains Malaysia, 11800 USM Penang, Malaysia;4. Nanotechnology Centre, University of Bahrain, PO Box 32038, Kingdom of Bahrain;5. Department of Physics, College of Science, University of Bahrain, PO Box 32038, Kingdom of Bahrain;6. Physics Department, College of Science, University of Dammam, P.O. Box 1982, Dammam 31441, Saudi Arabia
Abstract:This article analyzes Internet Service Provider costs and regulatory and policy issues raised by Internet telephony. Transport and non-technical items such as customer service, sales and marketing, represent a substantial portion of an ISP’s costs with Internet telephony. Pricing models and yield management techniques supporting Internet voice services might be employed for other Internet differentiated services as well. An integrated regulatory framework will be required, because of convergence, to formulate policies for multimedia services. We conclude that governments should develop appropriate policies without introducing economic and technical distortions into the nascent Internet telephony market.
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