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	<title>::: Think Macro ::: &#187; VoIP</title>
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		<title>Beware of the Skypzzz!</title>
		<link>http://www.thinkmacro.org/2009/07/beware-of-the-skypzzz/</link>
		<comments>http://www.thinkmacro.org/2009/07/beware-of-the-skypzzz/#comments</comments>
		<pubDate>Thu, 30 Jul 2009 02:11:47 +0000</pubDate>
		<dc:creator>Dima</dc:creator>
				<category><![CDATA[Russia]]></category>
		<category><![CDATA[policy]]></category>
		<category><![CDATA[technology]]></category>
		<category><![CDATA[telecom]]></category>
		<category><![CDATA[regulation]]></category>
		<category><![CDATA[security]]></category>
		<category><![CDATA[skype]]></category>
		<category><![CDATA[VoIP]]></category>

		<guid isPermaLink="false">http://www.thinkmacro.org/?p=466</guid>
		<description><![CDATA[
Rhetoric has been always a very powerful tool in promoting both policy and business agendas.  Russian telcos are now putting the old-good argument of security in promoting legislation that may allow them to succeed where their European and other colleagues have failed.
It seems that all around the world the telcos feel threatened by Voice over [...]]]></description>
			<content:encoded><![CDATA[<p style="text-align: justify;">
<p style="text-align: justify;">Rhetoric has been always a very powerful tool in promoting both policy and business agendas.  Russian telcos are now putting the old-good argument of security in promoting legislation that may allow them to succeed where their European and other colleagues have failed.</p>
<p style="text-align: justify;"><a href="http://www.flickr.com/photos/melpucca/3757042476/"><img class="size-full wp-image-473 alignleft" title="DevilishSkype" src="http://www.thinkmacro.org/wp-content/uploads/2009/07/DevilishSkype.png" alt="DevilishSkype" width="96" height="96" /></a>It seems that all around the world the telcos feel threatened by Voice over IP (<a href="http://en.wikipedia.org/wiki/Voip" target="_blank">VoIP</a>) applications that run on their infrastructure and offer free of charge voice services, with <a href="http://www.skype.com" target="_blank">Skype</a> being an iconic example*.  Only recently, the European telecos tried to <a href="http://www.pcworld.com/businesscenter/article/168539/skype_to_regulators_push_mobile_operators_to_allow_voip.html" target="_blank">argue</a> for unfair competition and asked to <a href="http://www.tradingmarkets.com/.site/news/Stock%20News/2357584/?relatestories=1" target="_blank">discriminate</a> against the use of VoIP on their networks.  The European Commission took a firm stand against it <a href="http://www.i-policy.org/2009/07/eu-battles-industry-plans-to-restrict-skype-on-mobile-phones-.html" target="_blank">arguing</a> for principles of net-neutrality also on mobile networks.  In the US AT&amp;T, together with Apple, work against VoIP applications such as <a href="http://online.wsj.com/article/SB123876873806886721.html" target="_blank">Skype</a> and <a href="http://business.theatlantic.com/2009/07/apple_says_no_to_google_voice.php" target="_blank">Google Voice</a> to be used on the iPhones.  It will be now up to the FCC to take a <a href="http://www.theiphoneblog.com/2009/04/03/free-press-fcc-tear-atts-skype-wall/" target="_blank">stand</a> on that issue.  Finally, the Israeli leading mobile service provider, Cellecom, is also seeking <a title="In Hebrew" href="http://www.themarker.com/tmc/article.jhtml?ElementId=skira20090302_1067887" target="_blank">ways</a> of limiting its users&#8217; access to VoIP and some other technologies, under the <a title="In Hebrew" href="http://www.holesinthenet.co.il/2009/03/03/%D7%A1%D7%9C%D7%A7%D7%95%D7%9D-%D7%94%D7%AA%D7%A7%D7%A9%D7%A8%D7%95-%D7%9E%D7%94%D7%90%D7%99%D7%A0%D7%98%D7%A8%D7%A0%D7%98-%D7%AA%D7%A2%D7%A0%D7%99/" target="_blank">slogan</a> of &#8220;quality of service.&#8221;  The Israeli Ministry of Communication actually took a pro net neutrality stand in this case, but the <a title="In Hebrew" href="http://www.themarker.com/tmc/article.jhtml?ElementId=az20090727_564574" target="_blank">argument</a> is still going on.</p>
<p style="text-align: justify;">In Russia, however, the local industry decided to make the long story short and instead of appealing to amorphous concepts such as &#8220;fairness&#8221; in competition or &#8220;quality of service&#8221; it turned to a more basic instinct &#8211; <a title="In Russian" href="http://uk.reuters.com/article/idUKTRE56N42Z20090724" target="_blank">fear</a>.  According to <a href="http://features.csmonitor.com/globalnews/2009/07/28/skypes-a-threat-to-russian-national-security-so-say-russian-phone-companies/" target="_blank">this article</a>, Russian telcos have warned the Kremlin that:</p>
<blockquote style="text-align: justify;"><p>&#8220;&#8230;the foreign-made VoIP software, easily downloaded from the Internet, is a threat to national security because it is resistant to eavesdropping by Russia’s intelligence agencies.&#8221;</p></blockquote>
<p style="text-align: justify;">To make things a bit spicier, they also added some nationalism.  The lobbying group was quoted saying that:</p>
<blockquote style="text-align: justify;"><p>&#8220;The majority of brands operating in Russia, such as Skype and Icq, are of foreign origin and therefore we need to ensure the defense of national producers in this sector&#8221;</p></blockquote>
<p style="text-align: justify;">While some civil rights activists are concerned with the state openly talking about spying on people, others view it a bit more pragmatically.  In a recent hearing on the subject it was <a title="In Russian" href="http://ne-gad.livejournal.com/121468.html" target="_blank">estimated</a> that in about 3 years 40% of voice traffic in Russia will be VoIP.  This creates a <a title="In Russian" href="http://cyberr-a-t.livejournal.com/23165.html" target="_blank">significant</a> <a title="In Russian" href="http://system64.livejournal.com/4308.html" target="_blank">incentive</a> for the industry to cooperate on legislation that &#8220;will bring order&#8221; to the VoIP market.  Indeed such an effort is currently underway in Russia.</p>
<p style="text-align: justify;">There was <a title="In Russian" href="http://www.gazeta.ru/techzone/2009/07/23_a_3226270.shtml?lj2" target="_blank">limited</a>, but <a title="In Russian" href="http://www.novayagazeta.ru/data/2009/080/33.html" target="_blank">critical</a> reaction on this topic in the mainstream Russian media and  even the blogsphere reacted only on the margines; some <a title="In Russian" href="http://blogs.mail.ru/list/kot_begemot_/7BB69AE6542FE484.html" target="_blank">expressed</a> <a title="In Russian" href="http://podrabinek.livejournal.com/36748.html" target="_blank">concerns</a>, others healthy <a title="In Russian" href="http://vodonos.livejournal.com/13197.html" target="_blank">sarcasm</a>.  I wonder though, if conversations about VoIP are going on in other countries as well, and if so, what arguments are made against and for it.</p>
<p style="text-align: justify;"><span style="color: #808080;">* Disclamer &#8211; I use Skype and, </span><span style="color: #808080;">to the most part,</span><span style="color: #808080;"> like it</span><span style="color: #808080;">.</span></p>
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