[FYI] Can VoIP survive Congress?
Can VoIP survive Congress?
By Declan McCullagh
http://news.com.com/2010-1028-5256334.html
Story last modified July 5, 2004, 4:00 AM PDT
Washington politicos are about to kick off what will be a long and
exhausting process aimed at deciding the future of phone calls made
over the Internet.
On Wednesday, a House of Representatives panel will convene its first
hearing devoted to considering how much of the thousands of pages of
weighty telecommunications regulations should be imported to cover
voice-over-Internet Protocol (VoIP) services. The apt title of the
hearing: "VoIP: Will the Technology Disrupt the Industry or Will
Regulation Disrupt the Technology?"
This is a process fraught with problems. For all the hype surrounding
VoIP, it remains a fledgling industry that could be severely--perhaps
even permanently--harmed if Congress veers in the wrong direction.
For all the hype surrounding VoIP, it remains a fledgling industry
that could be severely--perhaps even permanently--harmed if Congress
veers in the wrong direction. Early signals from Congress are mildly
encouraging. Rep. Charles Pickering, R-Miss., has introduced a bill
prohibiting state regulators from seizing control of VoIP services,
which is a welcome first step. But the measure also would impose a
hefty stack of regulations, including ones related to wiretapping and
universal service, on "connected" VoIP systems that offer the choice
of calling people on the existing telephone network.
Rick Boucher, D-Va., and Cliff Stearns, R-Fla., are planning a press
conference on Tuesday afternoon to announce a second House bill on
VoIP. Boucher told me that while the legislation won't be finalized
until the event, it has two major components: Blocking states from
regulating VoIP is one. The other is encouraging the Federal
Communications Commission to consider what 911, universal service,
and access charges requirements will apply.
In the Senate as well, politicians are divided on how to react to
VoIP. At a hearing last month, senators were skeptical of the Justice
Department's requests for broad new VoIP wiretapping powers. Others
insisted that the FCC must levy universal service taxes on VoIP
calls, with proceeds going to fund discounted analog phone service
for low-income and rural American households.
That's a big concern of state regulators, who say they fear losing
tens of millions of dollars--from fees and subsidies provided by
telephone companies--if more calls flow away from traditional phone
networks and onto the Internet. States such as Minnesota and New York
already are active in trying to seize authority over VoIP companies.
Recipe for disaster? This is a classic Washington scenario that often
heralds bad legislation. When just about everyone wants something,
they tend to be willing to trade political favors for it. The Justice
Department conceivably could ink a deal to back universal service
taxes on VoIP--on the condition that certain senators drop their
opposition to new wiretapping requirements, and so on.
This is a classic Washington scenario that often heralds bad
legislation. The danger is that either through ignorance or malice,
politicians will impose 20th century regulations on a 21st century
technology. A debate expected in the next year over revising the
Telecommunications Act offers a convenient opportunity to do just
that. Some of the leading candidates for regulatory shoehorning are
wiretapping requirements, 911 emergency service, disability access,
universal service, and "access fee" taxes.
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