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Puerto Vallarta News NetworkTechnology News | May 2005 

Users Decry Decline In Service
email this pageprint this pageemail usJonathan Clark - The Herald Mexico


Voice over Internet Protocol, or VoIP, is a technology that allows long-distance telephone calls to be made across a broadband internet connection at a fraction of the price of conventional phone service.
For months, Mark, a small businessman based in Mexico City, had been using his Voice over Internet Protocol (VoIP) service Vonage to make inexpensive long-distance telephone calls over the internet without problem. Then, suddenly in March, the quality of his calls declined precipitously.

"The calls have become so completely garbled that now the service is essentially unusable," says Mark, who preferred that his last name not be used.

At the same time, posters to internet bulletin boards at sites such as dslreports.com, baja.net and vonage-forum.com, began reporting similar problems with their Vonage service in Mexico. And many of the posters pointed blame for the service loss at their internet service provider Prodigy and its parent company, the national telephone monopoly, Telmex.

Voice over Internet Protocol, or VoIP, is a technology that allows long-distance telephone calls to be made across a broadband internet connection at a fraction of the price of conventional phone service. When Vonage's VoIP service suddenly began to fail, the company and its subscribers in Mexico cried foul. They charged that Telmex was protecting its longdistance telephone market dominance by "choking" the cheaper VoIP calls along its network.

"What Telmex is doing is they are looking at their customers' behavior, in terms of looking at what IP addresses they are using and what kind of traffic is going over that broadband network," says Kelly Larabee, spokesperson for Vonage, the market leader for residential VoIP service in the United States. "And so if they see you using Vonage, they basically take your broadband speed and slow it way down to prevent the quality from being usable."

Mark, the small businessman in Mexico City, decided to prove this theory for himself. First, he plugged his computer directly into his broadband internet connection. Then, he plugged it into the internet via the Vonage voice adapter modem which connects his telephone to the internet. He says that what he found was that the bandwidth to his computer was significantly reduced when it was plugged through the Vonage modem.

Mark's conclusion was that Prodigy/Telmex is able to identify the presence of a Vonage modem, and then slow bandwidth accordingly.

Several computer engineers contacted by The Herald concurred that Mark's test could indeed show that Telmex is intentionally choking Vonage's modems. However, they said that a software glitch or a flaw in the modem itself might also explain the slowdown.

Contacted for comment, a spokeswoman for Telmex said that the company had been "disconcerted" by the allegations and denied any misconduct. "Telmex has not taken a single action to prevent its customers from communicating (via Vonage)," she said.

"Everything we have seen indicates that the problem is happening because this service is not properly configured with Telmex," she said. "And Telmex in no way can guarantee the proper functioning of thirdparty services or devices that are not properly configured to Telmex or Prodigy."

Vonage is not the only foreign VoIP provider to suggest wrongdoing by Telmex, however.

European-based Skype is the world's largest internet telephone service provider, with 35 million subscribers worldwide and more than 300,000 in Mexico. Unlike Vonage, Skype's service does not require a voice modem. Instead, users make their calls after first logging onto the company's website. But some Skype customers in Mexico who use the service through a Prodigy internet account have complained of being blocked from accessing the site.

"We understand from user reports and other sources that Skype.com is being blocked in areas covered by Telmex, although we can't confirm that Telmex specifically is blocking the Skype site," the company said in an official statement. "We encourage all broadband subscribers in this area to contact their internet service provider and demand the open access they pay for."

Yet, despite the complaints from the companies and their users, representatives from Mexico's Federal Competition Commission (CFC) say that they have not registered any formal grievances against Telmex from domestic or international VoIP providers. And Lorena Romo, spokesperson for the consumer protection agency Profeco, says that while her agency receives numerous complaints against Telmex over billing and service disputes, it has, by her account, not registered any formal complaints against the company for blocking VoIP service.

For its part, Vonage says that because it doesn't have operations in Mexico subscribers here have to get their Vonage voice modem in the United States and bring it to Mexico themselves it is powerless to confront Telmex here.

"Because we don't operate in Mexico, we have very limited capability to resolve these Telmex issues," says the company's Brooke Shulz. "So if we go to the Mexican government and say, 'Force Telmex to stop doing this,' they're just going to say, 'Well, who are you? You don't even operate in our country.' We don't have a means of influence there."

But Vonage's allegations against Telmex have reached the government in Washington, said one U.S. trade official. "Vonage has approached us (about the problems in Mexico), and we're in the information-gathering stage to try to get a handle on what is happening," he said.

Still, even if the United States is able to find evidence of malicious behavior by Telmex against VoIP users, it may be a challenge to legally confront the problem. "NAFTA doesn't cover voice transmissions (Mexico) made sure to keep that out of the agreement," said the trade official. "But on the WTO (World Trade Organization) side, they do have a commitment. In any case, it's not clear exactly where the regulations stand (on VoIP)."

The WTO has ruled against Telmex in the past, finding it guilty in 2004 of overcharging U.S. consumers and businesses on long-distance connection fees to Mexico. And that track record, along with a recent U.S. Federal Trade Commission ruling against North Carolina-based Madison River Communications for blocking VoIP calls, is fueling the U.S. investigation.

"Telmex has a history of foul play," said the trade official, "and while we don't yet have hard evidence against them, from the patterns, it would appear that they are degrading their circuits the same way that (Madison River) was. So we've started informal chats on this with the Mexican government, and we are interested in a conversation with Telmex as well."



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