Implications of Telephony


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  Step 1:  Potential for Regulation

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If the Internet does become too congested, or if traditional telcos can bring enough pressure to bear on legislators, regulations pertaining to pricing and usage may come into play.
  Step 2:  New Protocols

New protocols might be required for real-time applications. Packets of data would be tagged or identified in some way to give them greater priority over less bandwidth-intensive applications, such as email. These same new protocols must continue to allow data packets to be transmitted over many different technologies. Developers have their work cut out for them.
  Step 3:  Charging Per Unit

Consumers may also see the end of flat-rate billing for Internet usage. Bandwidth might be charged out on a per unit basis. So if you want to use intensive applications like voice in video, you might have to pay more.
  Step 4:  Industry Shift

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Telcos faced with a loss of long distance carrier revenue will have to refocus their businesses. Some might go into the ISP business themselves. To counter the threat from telcos entering the Internet service market, ISPs may seek alliances with cellular and cable companies.