The VoIP world needs a pay-per-call E911 service
Submitted by brad on Fri, 2006-09-22 12:46As most people in the VoIP world know, the FCC mandated that "interconnected" VoIP providers must provide E911 (which means 911 calling with transmission of your location) service to their customers. It is not optional, they can't allow the customer to opt out to save money.
It sounds good on the surface, if there's a phone there you want to be able to reach emergency services with it.
The meaning of interconnected is still being debated. It was mostly aimed at the Vonages of the world. The current definition applies to service that has a phone-like device that can make and receive calls from the PSTN. Most people don't think it applies to PBX phones in homes and offices, though that's not explicit. It doesn't apply to the Skype client on your PC, one hopes, but it could very well apply if you have a more phone like device connecting to Skype, which offers Skype-in and Skype-out services on a pay per use basis and thus is interconnected with the PSTN.
Here's the kicker. There are a variety of companies which will provide E911 connectivity services for VoIP companies. This means you pay them and they will provide a means for you to route your user's calls to the right emergency public service access point, and pass along the address the user registered with the service. Seems like a fine business, but as far as I can tell, all these companies are charging by the customer per month, with fees between $1 and $2 per month.
This puts a lot of constraints on the pricing models of VoIP services. There's a lot of room for innovative business models that include offering limited or trial PSTN connection for free, or per-usage billing with no monthly fees. (All services I know of do the non-PSTN calling for free.) Or services that appear free but are supported by advertising or other means. You've seen that Skype decided to offer free PSTN services for all of 2006. AIM Phoneline offers a free number for incoming calls, as do many others.
Read on...