The US Federal Communications Commission is investigating the
growth of IP telephony, also known as VoIP or Voice over Internet
Protocol. A working group aims to answer the question of whether it
should be regulated in the same way as normal telephone services.
VoIP is basically the transport of telephone calls over an
internet connection. For a company that already pays for a
broadband connection, long distance calls can become free of
charge, albeit VoIP handsets tend to be much more expensive than
standard handsets.
The technology has the added attraction of being tax free, given
that internet access taxes are presently forbidden in the US.
However, cash-strapped US states, concerned at losing revenue
previously provided by highly taxed telephone calls, are calling
for VoIP calls to be regulated and taxed.
The FBI is also concerned that VoIP offers terrorists a low risk
means of communicating, as the structure for phone tapping and
surveillance is less easy to implement.
The industry says that VoIP is completely different in substance
and structure to traditional telephone services. These were
originally created by monopoly organisations and, they argue,
required regulation in order to facilitate competition.
VoIP is controlled and implemented by many different
organisations, competing against each other, say proponents.
Regulation is therefore not required and if introduced, would
stifle the innovative nature of the technology.
The FCC held a VoIP forum on Monday to hear from all sides. It
indicated that it favoured a light touch in dealing with the new
technology.
FCC Chairman Michael Powell said, in opening the forum, "I would
say from the outset and I think most people would agree that
moving more communications to IP is in the public interest".
"In my view, the policy environment must begin with the
recognition that the internet is inherently a global network that
does not acknowledge narrow, artificial boundaries," he added,
saying he would prefer VoIP to "evolve in a regulation-free
zone."
The FCC has launched the Internet Policy Working Group to
consider what regulations are necessary, if any. No date has
been set for publication of its findings.
