Is the Regulation of VoIP Service Good or Bad?
Regulating VoIP service providers was initially a hands-off issue to the US Federal Communications Commission. Even so, VoIP was wrought with problems when users found out that they couldn’t place emergency calls from their VoIP phones. Since then, the FCC has done what other individuals call a “regulatory creep” or a gradual regulation on VoIP.
Why not just regulate VoIP?
Some say that limiting VoIP to a specific classification limits its innovation potential and discourages the entry of start-ups and new VoIP service providers in the market. This means less VoIP accessibility to Americans. It also implies Internet regulation, something that brings with it a complete new host of consequences.
Even so, some are for the regulation of VoIP to ensure the right of consumers to essential phoning services. If the FCC has jurisdiction over VoIP, then it also has the right to demand VoIP providers to contribute to particular phone service or broadband funds for the disabled and for rural and low income regions. These funds are taken from a particular percentage of a telecom carrier’s revenue and are passed on to telecom subscribers (it is possible to check your telephone bill). However, one question to this is, should the FCC gain automatic jurisdiction over VoIP just because it supports a lofty goal?
Certainly, these problems are just the tip of the iceberg. There are a lot of interlinking problems that should be examined with regards to the full regulation of VoIP.
Summary of regulations on VoIP (as of November 2010, Telecom Law Monitor)
The root of VoIP regulation
One of the main questions that the FCC has yet to take a stand on is, do VoIP service providers provide a telecommunications service or do they offer information service? Under the Telecommunications Act of 1996, if VoIP is defined as an information service (Title One), then it is regulated only to a certain extent in accordance to the FCC’s ancillary jurisdiction. However, if it is defined below Title Two from the Act, then it ought to be fully regulated just like other telecom carriers. Some are with the opinion that “if it acts like a telephone and functions like a phone, then it’s a phone”. Some, however, feel that this immaterial. The question for them is, should the FCC even be authorized to regulate VoIP?
This is under consideration:
– Comply with FCC outage reporting specifications
These usually do not apply yet:
– Comply with state guidelines governing market entry/exit
– Comply with FCC slamming guidelines
These do not apply yet:
– Comply with state guidelines governing market entry/exit
– Comply with FCC slamming guidelines
Below are some of the regulations already imposed on interconnected VoIP:
– Comply with Local Number Portability (LNP) rules
– Comply with consumer privacy/marketing restrictions (CPNI)
– Comply with Communications Assistance for Law Enforcement Act (CALEA) requirements
– Subject to fines/enforcement action for first FCC violation
– Comply with FCC rules governing market entry/exit
– Comply with 911 and E911 requirements
– Contribute to the Universal Service Fund (USF),
– Telecommunications Relay Service Fund (TRS) and related funds
– pay FCC regulatory charges
Clearly, the divide between telecom and info service is no longer viable. If VoIP service providers are to become regulated, then it may be high time to get a new regulatory structure.
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