By Al Senia
The Federal Communications Commission may have raised many more questions than it answered with its recent ruling about VoIP technology.
One on hand, the FCC was quite clear in deciding that one form of the developing technology isn't bound by the rules and expenses of traditional telephone service. On the other hand, the agency whetted the appetite of an entire industry concerned about what is coming next, as well as precisely when it might be coming.
"This could wind up being a catalyst for a much more comprehensive review of federal (telecom) policy," said Diane Northfield, program manager, global regulatory strategy for The Yankee Group research firm.
Many service providers are thinking the same way. The FCC still has six or seven open regulatory matters involving telephone service to decide. Tom Gerke, Sprint's executive vice president and general counsel, was quick to note that while the FCC's first-ever ruling on VoIP was a start, it didn't address "the regulatory uncertainty that is denying telecom companies the clarity they need" to execute their business plans.
"In conjunction with considering regulation of VoIP, the FCC faces the even more important challenge of restructuring the mess of intercarrier compensation," says Gerke.
Meanwhile, executives from VoIP upstarts such as Vonage have been quite clear about their own belief that a whole lot of federal regulation isn't desirable, and that such regulation may simply be revenue driven, an excuse to levy new taxes. And executives at SBC Communications and Verizon also agreed that the FCC's light regulatory touch seemed just right.
In its decision, the FCC ruled the Free World Dialup service offered by Pulver.com isn't subject to the rules of conventional phone service, because, well, it just isn't conventional phone service. That's a pretty easy conclusion to draw because the service is free, it is open only to members and it doesn't utilize traditional phone equipment, the public phone network or even traditional numbers.
"We should all work to implement Congress's clear preference for a vibrant, free market in Internet applications," FCC Chairman Michael Powell said in making the ruling. He said consumer choice must prevail
One on hand, the FCC was quite clear in deciding that one form of the developing technology isn't bound by the rules and expenses of traditional telephone service. On the other hand, the agency whetted the appetite of an entire industry concerned about what is coming next, as well as precisely when it might be coming.
"This could wind up being a catalyst for a much more comprehensive review of federal (telecom) policy," said Diane Northfield, program manager, global regulatory strategy for The Yankee Group research firm.
Many service providers are thinking the same way. The FCC still has six or seven open regulatory matters involving telephone service to decide. Tom Gerke, Sprint's executive vice president and general counsel, was quick to note that while the FCC's first-ever ruling on VoIP was a start, it didn't address "the regulatory uncertainty that is denying telecom companies the clarity they need" to execute their business plans.
"In conjunction with considering regulation of VoIP, the FCC faces the even more important challenge of restructuring the mess of intercarrier compensation," says Gerke.
Meanwhile, executives from VoIP upstarts such as Vonage have been quite clear about their own belief that a whole lot of federal regulation isn't desirable, and that such regulation may simply be revenue driven, an excuse to levy new taxes. And executives at SBC Communications and Verizon also agreed that the FCC's light regulatory touch seemed just right.
In its decision, the FCC ruled the Free World Dialup service offered by Pulver.com isn't subject to the rules of conventional phone service, because, well, it just isn't conventional phone service. That's a pretty easy conclusion to draw because the service is free, it is open only to members and it doesn't utilize traditional phone equipment, the public phone network or even traditional numbers.
"We should all work to implement Congress's clear preference for a vibrant, free market in Internet applications," FCC Chairman Michael Powell said in making the ruling. He said consumer choice must prevail
