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Review the Information and Filings section for latest regulatory and policy pronouncements.
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Industry News
(VON Magazine)



Voice on the Net (VON) Coalition Principles

The longstanding U.S. policy of "hands off the Internet," has been emulated by governments everywhere and has been an enormous success. VoIP is a force for increased competition, a platform for innovation, and a driver of broadband deployment.

The best public policy is to refrain from applying traditional telecom regulation to VoIP and to affirmatively create a national policy vision that ensures that traditional telecom regulation does not apply to Internet voice communications throughout the country.

While members of this coalition have different views on how much market power some facilities-based telecom providers have, we all agree that policies should be continued that permit entities that do not have significant market power to deploy voice over IP free from traditional telecom regulation.

The Coalition freely concedes that there are important social policy issues where the FCC and state regulators have a legitimate role. The VoIP community is prepared to work constructively on such issues, including providing access to those with disabilities, access to emergency services, cooperation with law enforcement, secure funding for universal service, and reform of inter-carrier compensation. These legitimate concerns can be addressed without imposing heavy regulation on VoIP and that if they are addressed successfully the pressure to regulate VoIP will dissipate. The coalition supports efforts to address these issues including:

  • Emergency Services. VoIP industry representatives have been working with the National Emergency Number Association’s (“NENA’s”) VoIP/Packet Technical Committee and VoIP Operations Committee to assess the current state of 911 provisioning in VoIP environments and to develop 911 solutions. There are important differences between the provision of 911 for traditional PSTN traffic and for VoIP, but there is every reason to expect that technical solutions exist to provide users with reliable access to public safety services. NENA and representatives of the VoIP industry recently reached a voluntary agreement on the next steps to develop the technical and operational mechanisms for providing effective access to emergency services by users of VoIP.
  • Law Enforcement. Voluntary efforts also are underway with respect to compliance with CALEA, the statute that addresses cooperation with law enforcement. Packetswitched technology poses unique technical issues, but manufacturers and providers of VoIP are moving ahead to implement compliance capabilities into their systems. Moreover, CALEA has a different definition of telecommunications than the Communications Act, so there is no need to define VoIP as telecommunications for Communications Act purposes in order to mandate that VoIP manufacturers and service providers cooperate with law enforcement.
  • Universal Service. As for universal service, of course, VoIP providers directly or indirectly already contribute to USF. The fact that more and more calls, including wireless and business calls made on modal access as well as some VoIP calls, don’t contribute or contribute unevenly to USF should not be an excuse for regulation of all these modes. Instead, what is needed is reform of funding for explicit USF. We believe that a numbers-based contribution mechanism would better ensure the continued sustainability of USF than any attempt simply to include VoIP or other information services in the current revenue-based mechanism. If one of the goals of universal service is to provide affordable voice communications to rural America, then no technology offers more promise for providing more affordable communications, not only to rural America, but to all of America.
  • Inter-carrier Compensation. We urge the FCC to move away from a hodgepodge of implicit subsidies and towards a rational series of voluntary inter-carrier business arrangements with regulation required only when there is effective monopoly ownership of a bottleneck. "Bill and keep" may well turn out to be an effective arrangement as it has been in much of the IP world.
  • Phone-to-Phone VoIP Regulation. One suggestion that has been made is that phone-to-phone Voice over IP be regulated while "other" VoIP is not. This would be a mistake even if it were possible and it is, in fact, impossible to define today what is a phone. It is phone-to-phone traffic which has funded and continues to fund the buildout of a worldwide network of interfaces between the PSTN and the Internet around the world. These interfaces are necessary so that VoIP phone and voice PBXes can connect with the TDM world and vice versa. It is the existence of these networks of traffic exchange points which are making possible the deployment of innovative new VoIP services because the users of these services have full connectivity to the TDM world – not just to other VoIP users.
  • State Role. We also don’t deny that there is a legitimate role for state governments, but that role has to be defined in a way that is consistent with the interstate nature of the Internet and the practical problems that would be caused by varying state regulation.
  • FCC Role. We believe that the FCC has the legal authority to continue to keep its hands off the Internet and IP networks even when they are used for voice applications. Voice over IP should be classified as an information service and regulated only to the extent necessary pursuant to the Commission’s Title I or ancillary jurisdiction.

VoIP providers shouldn’t be regulated like phone companies with large market power. The historic reason for telephony regulation was the existence of monopoly providers and an infrastructure which made it nearly impossible to challenge such monopolies even in the rare case where it was legal to do so. In contrast, a provider of a VoIP service has no need to own or build the infrastructure on which the service is delivered and, since there are no historic or even nascent VoIP monopolies, there is simply no basis for regulation of any such provider that does not have significant market power.

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