Peering is everything

This marks my fifth FierceVoIP newsletter, and a fiery baptism into a labyrinthine world of business models and technology worthy of a Harry Potter plot. I have a story index that already includes a spectacular failure (SunRocket); emerging disruptive technologies (ooma and the T-Mobile router); litigation (Vonage); unprecedented government VoIP projects (Social Security Administration); and a type of call traffic routing that sounds like something out of Star Trek.

The more I read about VoIP peering, the more it seems clear that switched networks will go the way of the Stromberg and Carlson crank phone. Peering allows VoIP providers to connect calls without accessing the traditional switched telephone network, which costs money. The physical infrastructure necessary for VoIP is available; it's the number system that still needs work. VoIP peering requires the capability to interpret phone numbers as IP addresses.

The technology exists, but two other conditions must also be met: A number directory has to be compiled, and for that to happen, consumer VoIP adoption has to stabilize. Plenty of people are still jumping in and out of VoIP service because they're not happy with quality, pricing or both. Churn for pure-play consumer VoIP providers is brutally high, and porting can become a nightmare. With that type of fluidity, a VoIP number directory would be pretty hard to maintain.

Cable operators have the best opportunity to nail down domestic VoIP peering. Their video/broadband/voice bundles are sticky, and their VoIP numbers are growing. The five largest U.S. cable operators have nearly 8 million VoIP subscribers--the perfect environment for a breakthrough peering architecture, don't you think? Let me know, at dmcadams@fiercemarkets.com. -D.