[FYI] Can VoIP survive Congress?

["Axel H Horns" <axel.h.horns@gmx.net>]

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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