Creative Destruction
Arbitrage is already beginning
- Callback and other tricks to avoid international settlements
- Huge imbalances in Internet traffic due largely to cheap bandwidth in the U.S.
- CLECs attempt to take advantage of reciprocal compensation for serving ISP customers
- IP telephony -- the straw that breaks the camel’s back?
The status quo is less stable than you think
- Access charges approximate the aggregate profit margins of the Bell Operating Companies
- The “low-hanging fruit” (fax, international, voice mail, intra-corporate traffic) represents at least 40% of long-distance revenues