[tw]

Originally Posted by Undertoad

There is no advantage in being a big company on the Internet. Bigness doesn't really matter on the net. No single entity can hope to truly control any major part of the net; the net won't tolerate it.

We can hope that is true. But reality says such big companies are already manipulating so as to charge more money for new services such as VOIP.

From IEEE Spectrum of October 2005:

A seven-year-old Mountain View, Calif., company, Narus Inc., has devised a way for telephone companies to detect data packets belonging to VoIP applications and block the calls. For example, now when someone in Riyadh clicks on Skype's "call" button, Narus's software, installed on the carrier's network, swoops into action. It analyzes the packets flowing across the network, notices what protocols they adhere to, and flags the call as VoIP. In most cases, it can even identify the specific software being used, such as Skype's.

Narus's software can "secure, analyze, monitor, and mediate any traffic in an IP network," says Antonio Nucci, the company's chief technology officer. By "mediate" he means block, or otherwise interfere with, data packets as they travel through the network in real time. ...

The desire to block or charge for VoIP phone calls extends far beyond the Middle East. According to Jay Thomas, Narus's vice president of product marketing, it can be found in South America, Asia, and Europe. International communications giant Vodafone recently announced a plan to block VoIP calls in Germany, Thomas says. A French wireless carrier, SFR, has announced a similar plan for France. ...

"But there's nothing that keeps a carrier in the United States from introducing jitter, so the quality of the conversation isn't good," Thomas says. "So the user will either pay for the carrier's voice-over-Internet application, which brings revenue to the carrier, or pay the carrier for a premium service that allows Skype use to continue. You can deteriorate the service, introduce latency [audible delays in hearing the other end of the line], and also offer a premium to improve it." ...

U.S. broadband-cable companies are considered information services, which by law gives them the right to block VoIP calls. Comcast Corp., in Philadelphia, the country's largest cable company, is already a Narus customer; Thomas declined to say whether Comcast uses the VoIP-blocking capabilities.