Internet telephony: Costs, pricing, and policy

Lee W. McKnight, Brett Leida

Research output: Contribution to journalArticlepeer-review

21 Scopus citations


This article analyzes Internet Service Provider costs and regulatory and policy issues raised by Internet telephony. Transport and non-technical items such as customer service, sales and marketing, represent a substantial portion of an ISP's costs with Internet telephony. Pricing models and yield management techniques supporting Internet voice services might be employed for other Internet differentiated services as well. An integrated regulatory framework will be required, because of convergence, to formulate policies for multimedia services. We conclude that governments should develop appropriate policies without introducing economic and technical distortions into the nascent Internet telephony market.

Original languageEnglish (US)
Pages (from-to)555-569
Number of pages15
JournalTelecommunications Policy
Issue number7
StatePublished - 1998
Externally publishedYes

ASJC Scopus subject areas

  • Human Factors and Ergonomics
  • Information Systems
  • Electrical and Electronic Engineering


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