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California PUC Calls For A Public Hearing On VoIP

Vick points to this story at Voxilla.com, which says that "A California Public Utilities Commissioner has called for public hearings on the agency's recent demand that Voice over IP service providers apply and be certified as full-fledged telephone companies." The anti-regulation arguments, though, mostly seem to hinge on timing and protocol -- I wish more objectors would argue that there are already too many phone regulations, instead of seeming to promise a boatload more captured users (dollars) if we just let VoIP develop for a few years before unchaining the regulators.

114 comments

  1. The Beauty of VOIP by Gortbusters.org · · Score: 1

    I'm not sure how they will regulate it. The beauty of VOIP is that I can plug a phone in anywhere and get service as long as I have network connectivity. Of course bandwith, codec set, and any quality of service settings are very important as well.

    Would the regulation be where the VOIP service provider finally does the TDM conversion for the PSTN fall off or would it be on the bandwith and such?

    Personally my favorite VOIP product has to be Avaya's IP Softphone. Can telecommute over a VPN, and the sofpthone will override my desk set in my office giving me a fully-featured enterprise phone on my laptop. Just need to get a USB microphone for better quality.

    --
    --------
    Free your mind.
    1. Re:The Beauty of VOIP by Anonymous Coward · · Score: 1

      I'm not sure how they will regulate it.

      Ultimately, VOIP phone service plugs into the real phone system somewhere. It's easy for a regulator to track them down.

  2. Look for Cisco behind this by Ars-Fartsica · · Score: 1

    They have been pushing hard to be in the middle of voice as well as data networks. To get there they need the legitimacy granted by government approval.

  3. VoIP doesn't manage physical wires by crow · · Score: 4, Insightful

    The big difference between VoIP companies like Vonage and the traditional phone companies is that Vonage doesn't manage any physical connection to its customers. The implications of that one fact are huge.

    First, it means they aren't a natural monopoly. Anyone can start a similar business without investing millions of dollars in each community. The regulatory approach to a non-monopoly should be completely different.

    Second, it means that taxes based on physical connections aren't appropriate. Vonage shouldn't charge for the Universal Connectivity Fund. Granted, there may be good reason to create a Universal Broadband Fund, but that would be based on charges levied by the ISPs, not by secondary service providers.

    1. Re:VoIP doesn't manage physical wires by LostCluster · · Score: 2, Interesting

      But allowing Vonage to poach the the phone customers in the bandwidth-fortunate territories will be the death of the USF...

      The idea of the USF is to set one regulated price for phone services everywhere in the state, with the overage profits from those connections that are easy to serve in the cities being funneled into paying for customers that the ILEC phone company is required to serve at a loss in the rural areas.

      If Vonage and friends are allowed to continue unregulated, the eventual end is that nobody in the easy-to-serve areas will be paying into the USF, yet the people who need the USF's support for phone service won't have the luxury of switching to broadband.

      Yeah, Vonage is great for people who have broadband, but it does nothing for the people who don't. So, unless you have a solution to the digital divide problem, you've gotta pay the tax to help the unfortunate keep their phone service...

    2. Re:VoIP doesn't manage physical wires by st0ner1 · · Score: 2, Insightful

      Unfortunate eh, Where I live the people that live in the rural areas are the ones that can afford the 2 million plus ranchete. Its not clear that I need to be subsidizing these folk. In any case I am prepared to pay the fair marked value for the services I recieve and those that choose to live in rural areas should do the same. Food isnt cheaper in the sticks its more because of increased distribution costs. Why should phone services be any different.

    3. Re:VoIP doesn't manage physical wires by AnotherBlackHat · · Score: 1

      But allowing Vonage to poach the the phone customers in the bandwidth-fortunate territories will be the death of the USF...


      And this is bad because?

      Maybe the idea that one price fits all should be discarded in favor of something that more closely fits reality.

      Or maybe not.

      I haven't seen much arguement/evidence either way.

      -- this is not a .sig
    4. Re:VoIP doesn't manage physical wires by Wesley+Felter · · Score: 1

      Let's go over this again. Cellular providers don't have a natural monopoly, but they are regulated. CLECs, who don't have a natural monopoly, are regulated. Are you arguing that only ILECs deserve to be regulated (because of their monopoly)? Or are you arguing that VoIP is somehow special?

    5. Re:VoIP doesn't manage physical wires by Dun+Malg · · Score: 1
      Food isnt cheaper in the sticks its more because of increased distribution costs. Why should phone services be any different.

      Because phone service is a necessity, unlike food. (their logic, not mine; feel free to laugh)

      --
      If a job's not worth doing, it's not worth doing right.
    6. Re:VoIP doesn't manage physical wires by Anonymous Coward · · Score: 0
      Where I live the people that live in the rural areas are the ones that can afford the 2 million plus ranchete

      That is true here only when you are speaking of prime lakefront properies.
      Five miles, ten miles, inland it is a very different story.

    7. Re:VoIP doesn't manage physical wires by Dun+Malg · · Score: 2, Insightful
      Let's go over this again. Cellular providers don't have a natural monopoly, but they are regulated. CLECs, who don't have a natural monopoly, are regulated.

      Sorry, try again. Federal law says states can't set prices or erect barriers to companies entering or exiting the mobile telephone marketplace. Cellular service is regulated a bit by the FCC, but unlike the copper-loop-providers, the state PUC's can't touch 'em. States have the usual power to regulate the terms and conditions of service contracts, but that's true for ANY industry.

      Are you arguing that only ILECs deserve to be regulated (because of their monopoly)?

      I would argue that YES, the monopoly providers of the last-mile copper should be regulated, as there is no competition. That is, in fact, the entire justification behind PUCs regulating ILECs.

      Or are you arguing that VoIP is somehow special?

      I would say that VoIP is more like cellular service than POTS. It's not dependent on a single provider of a physical medium for delivery. Internet connectivity is available from numerous competing providers, therefore the only valid justification for PUC oversight (monopoly provider) is not present.

      --
      If a job's not worth doing, it's not worth doing right.
    8. Re:VoIP doesn't manage physical wires by westlake · · Score: 2, Interesting

      The rural poor, the elderly and disabled, generally qualify for Food Stamps, other governmental and private charitable food aid and distribution programs. Universal phone service made a profound transformation in both rural and urban life, it is the core of our modern emergency response system, don't expect politicians to abandon the principal anytime soon.

    9. Re:VoIP doesn't manage physical wires by fermion · · Score: 1
      As I mentioned before, the are two issues in utilities. One is the monopoly status and the other is reliability. If enough people go to unregulated services, then the reliability we take for granted might be compromised. The reality is that we are very fortunate in the US. Land line reliability is very high. There have several occasion where I had not electricity but had line land service. Cell phone service is not yet reliable enough to take the slack.

      The thing is that these services are growing quickly. We can either take time now to calmly and logically regulate them, or wait for a major disaster and slap some random rules together.

      --
      "She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
    10. Re:VoIP doesn't manage physical wires by silentbozo · · Score: 3, Insightful

      You seem to be ignoring something. If you subscribe to dedicated DSL you're already paying USF on the copper pair going to your house. If I'm going to get VOIP over those copper wires, why should I pay USF twice?

      Think about it. Your argument could easily be applied to wireless - if you let everyone use 802.11b, they should have to pay USF because they might concievably drive established carriers out of business, thus driving down the amount available to fund phone service for schools, libraries, rural and disadvantaged residents, etc.

      I'd rather use these new technologies to provide cost-effective service to everybody, rather than taxing it (and there by limiting its competitiveness) just because an established monopoly is a source of cheap revenue.

    11. Re:VoIP doesn't manage physical wires by mjh · · Score: 1

      If the regulatory fees assume a particular level of technology in order to be relevant, then that's indication that the regulation was short sighted. Continuing to enforce such a regulation can only create problems down the road. Especially when innovative new technology skirts the need for those regulations. The impact will be to hold our country at a particular level of technology and enslave us all to it's inefficiencies. Or put another way, if VoIP is saddled with taxes and regulations that were designed for a LEC, and those regulations prevent VoIP from being utilized, the impact will be to kill a cost effective and in demand technology and empower the incumbant technology. Why would anyone ever switch? Which means that we'll effectively saddle ourselves, as a country, to a less efficient technology with no real hope of getting off of it since the precedent for killing competitors will have been set.

      The reality is that VoIP is a better mouse trap. It's smarter. It's more efficient. It's not a monopoly. We should NOT apply taxes and regulations to it that were designed for a completely different technology.

      --
      Key to financial independence: Spend less than you earn. Save and invest the difference. Do it for a long time.
    12. Re:VoIP doesn't manage physical wires by calidoscope · · Score: 1
      In any case I am prepared to pay the fair marked value for the services I recieve and those that choose to live in rural areas should do the same.

      Whether you know it or not, you are benefitting from the regulations that limit how much can be charged for the right of ways for the various paths your phone calls / IP packets take to get to their destination. If you're willing to benefit from regulation, you might as well let other people benefit.

      --
      A Shadeless room is a brighter room.
    13. Re:VoIP doesn't manage physical wires by st0ner1 · · Score: 1

      Agreed, regulation preventing the use/abuse of monopoly power is a good thing. But thats not what were talking about here is it? Were talking about regulation for the sole purpose of enriching the state coffers.

    14. Re:VoIP doesn't manage physical wires by Anonymous Coward · · Score: 0

      If you subscribe to dedicated DSL you're already paying USF on the copper pair going to your house. If I'm going to get VOIP over those copper wires, why should I pay USF twice?

      Because you have two lines and two phone numbers.

    15. Re:VoIP doesn't manage physical wires by Anonymous Coward · · Score: 0

      If I subscribe to dedicated DSL and get VOIP, I have ONE telephone line and ONE phone number. Perhaps you were thinking about line-sharing where you piggyback DSL over an existing land-line?

  4. how easy to track? by Alien54 · · Score: 1
    well the public use, with a connect to non internet phones, could easily be regulated.

    But private networks, like grand parents calling kids on the other side of the country. that will be harder to track.

    --
    "It is a greater offense to steal men's labor, than their clothes"
    1. Re:how easy to track? by LostCluster · · Score: 1

      That's exactly what they're trying to do. A pure VoIP call will be unregulated, it's the companies that are trying to call themselves "The Broadband Phone Company" without registering as a regulated phone company that are being called in...

    2. Re:how easy to track? by kfg · · Score: 2, Insightful

      Impossible to track. A packet is a packet.

      It's all handled in software too. Calling Roger Wilco or PalTalk "phone services" stretches the definition to the snapping point. For strict peer to peer I could write software myself so regulating the software is pointless to even try. I know tons of teenagers who could do it as well. It isn't rocket science. It isn't even computer science.

      And then what do you call an email with an .ogg file attached?

      Regulationg computer to computer voice transmission over IP makes no more logical, or legal, sense than regulating two tin cans and a piece of string.

      I own my tin can. Granny owns hers. If granny lives across the country we lease rights to the string already. If she lives across the hall we even own the bloody string.

      KFG

  5. more taxes on taxes... by another+misanthrope · · Score: 1

    this affects me personally, as I just submitted the faxwork to cancel/transfer my landline # to my vonage account. For redundancy, I'm getting a new cell plan with more minutes. In other words, it'll cost me a few more bucks a month but I'm still saving heaps of money over the (landline) greedy monster-corp

    Even with the new taxes I still feel much cleaner - kinda like when I dumped cable for my dish...

    1. Re:more taxes on taxes... by Anonymous Coward · · Score: 0
      In other words, it'll cost me a few more bucks a month but I'm still saving heaps of money

      and, pray tell, how do you work this magic?

  6. Can't undercut by bypassing regulations by LostCluster · · Score: 4, Informative

    First, let's clear up a definition issue here: The VoIP we're talking about here isn't the actual protocol, it's the use of VoIP to provide a connection into the PTSN, effectively it's POTS-over-VoIP.

    POTS is a regulated competitve system at this point. You've got the ILEC former monopolies who now are required to bend over backwards to let CLECs into their interfaces. However, everybody in the POTS business is required to submit their payments into the USF, provide free priority 911 connectivity, and other basic things. What the POTS-over-VoIP services are trying to sell themselves as is a replacement to phone service that costs less, but they're making a lot of their cost savings by cutting corners on the services that the companies they're trying to compete with are required to provide.

    That's unfair competition, and something the regulators need to step in on.

    1. Re:Can't undercut by bypassing regulations by Anonymous Coward · · Score: 1, Interesting

      figures /. moderators would not only mod this up, but give it some lame description like "informative".

      Your identification of who these companies are is wrong, and your justification of the legal issues is wrong also. You claim

      "But allowing Vonage to poach the the phone customers in the bandwidth-fortunate territories will be the death of the USF.."

      and you claim

      "If Vonage and friends are allowed to continue unregulated, the eventual end is that nobody in the easy-to-serve areas will be paying into the USF, yet the people who need the USF's support for phone service won't have the luxury of switching to broadband."

      Hello, have you looked around at those rural areas? Have you seen the great shape that our rural networks are in because the LECs receive USF funds? I got some phone switches to show ya. :)

      I don't think the PUC has the legal right to do what they are doing. Part of the issue is over the ownership of the lines, but there are other issues. The definitions/concepts of USF vs the Internet structure, VOIP etc are two different worlds.

      You also claim

      "So, unless you have a solution to the digital divide problem, you've gotta pay the tax to help the unfortunate keep their phone service... "

      this is utter BS. Read the article, the amount of subscribers these services provide is tiny compared to the amount of possible subscribers in the golden state. As someone in the article mentioned "whynow?". And why must we keep paying taxes for these "unfortunate" people who really don't get what most would consider "phone service". LECs don't upgrade their networks, their lip service PR plays seem to be just accounting tricks cause the switches aren't upgraded. When the LEC can't even provide operator service to detect what is wrong with a phone number, you know it is because the switch is soooooooooo old only ATT operators have the manuals on how that switch works...... I'm willing to bet you find this simple problem alot more common in those rural areas the USF is suppose to help. Want to bet?

      Since LECs do receive these funds, the real "unfair" competition is forcing these new VOIP providers to cough up USF fees. There isn't even a real market yet to address the USF concepts in a future digital divide. This PUC test seems like a trial balloon like the LECs did before destroying the alternative DSL business. Anyone remember those independent DSL providers? :)

    2. Re:Can't undercut by bypassing regulations by cullenfluffyjennings · · Score: 1

      It's an interesting argument - however, the only "service" you identify is 911. I look at my phone bill every month and notice that a lot of money has been collected to support 911. I go and meet with the people that run the 911 centers and they don't have a lot of money. Seems someone in the middle ate it all. Anyways, perhaps what is needed is to IP enable all the 911 centers - then there will be no argument that the VoIP vendors are taking advantage of the the PSTN providers.

    3. Re:Can't undercut by bypassing regulations by Anonymous Coward · · Score: 3, Insightful

      OK, first of all, they aren't the ILECs' interfaces, or at least, in a sane world they *shouldn't be*... they were paid for by money that resulted from a government granted monopoly... later the infrastructure "ownership" went to the RBOCs, although some of us thought at the time that it would make sense to take it away from the "Baby Bells", put it into the hands of non-profit organizations dedicated solely to its maintenance and enhancement and force them to truly compete in the arena of services.

      That didn't happen, of course - too much money was at stake, and too many politicians' palms were greased at the state and federal level to ensure that it wouldn't happen.

      The Telecommunications Reform act of 1996 was supposed to open up the POTs lines to ILECs, with an eye towards fostering competition. In return, the RBOCs would be allowed to offer long distance services again.

      Again, it didn't happen, not really... ILECs came and went, and the few that have survived have done so only in high population density areas, although I note that Verizon and other RBOCs are now allowed to offer long distance services despite their at best begrudging compliance with the law.

      Cynically, I think that the only reason the California state PUC is getting involved is because the RBOC wants eliminate any competition, and if they start now while the services are small, they can either strangle them at will, or keep them under control and stomp on them at their leisure later.

      There's enough bandwidth now with cable modem and DSL, and enough availability, to make a serious dent in all of the RBOCs' local service cash flow numbers in ony a few yeats if services such as Vonage catch on.

      And as for your statements about 911 services and the USF, all the companies pass that cost on to the customer base, so I fail to see what your point is in that regard - it doesn't cost the RBOCs anything.

    4. Re:Can't undercut by bypassing regulations by mjh · · Score: 1

      Ok. So when a company gets themselves a PBX and connects 100 seperate lines to it for their employees, they should, by your argument, not only pay the USF and regulatory fees for the trunk that they plug into their PBX, but also for every single line that they extend to their employees? If not, can you explain how it's different with VoIP? Vonage (et al) already pay USF on the lines that are connecting them to the PSTN. They then, just like a PBX, extend those lines further.

      If you feel justified in taxing/regulating VoIP, then you probably need to also tax every corporation with a PBX or phone switch. I don't really think that's going to happen. I don't really think it should.

      --
      Key to financial independence: Spend less than you earn. Save and invest the difference. Do it for a long time.
    5. Re:Can't undercut by bypassing regulations by LostCluster · · Score: 1

      The "P" in "PBX" stands for "Private". A PBX is used within one organization to route internal calls without going to the PTSN, and to allow the organization to get by with less actual PBX lines than extentions. However, if you operate a PBX, you cannot sell a "PBX service" line to somebody else. You can't sell a phone service without registering as a phone company and complying with all of the regulations that come with being a phone company. Vonage is trying to claim they're not a phone company, yet advertising themselves as "The Broadband Phone Company." They can't have it both ways.

    6. Re:Can't undercut by bypassing regulations by mjh · · Score: 1

      However, if you operate a PBX, you cannot sell a "PBX service" line to somebody else.

      Really? There are tons of businesses that do just this. Go look into office leasing companies. They will sell you a room with a door, a lock, a desk, a chair, and (included in the price) a phone with your very own number that you get to advertise in the phone book as the number of your office. Or you can look at extended stay hotels which do basically the same thing (except for publishing the phone number). Or you can look at large brokerage firms that lease out access to their technical infrastructure (e.g. market data feeds, internet access, etc) to small brokers who need to have access to that stuff. And, of course, as part of the package you get a phone and you're very own number. The large brokerage firms lease out all of this stuff to their customers.

      In each of the above cases, this is implemented using a PBX. Those phone lines are resold to customers without having any regulatory agencies coming down and criticizing the businesses for not charging tax or USF on those lines. Why? Because, of course, the tax and USF is already paid for by the business who owns the PBX and leases the trunks that plug into it. The rest of it goes over a seperate infrastructure that has absolutely nothing to do with the phone company.

      In the case of VoIP, it's practically identical with a small difference. That difference being that the connections to the handsents go out over the internet. But even so, there are two possibilities for how those connections get from (e.g.) Vonage to the user:

      1. The traffic travels the internet over the PSTN (e.g. DSL, T1, etc), for which USF and taxes are already collected, or
      2. The traffic travels the internet over something other than the PSTN (e.g. cable modem, wireless, etc) for which there is NO justification for taxation and fee assessment like it's the PSTN. If the PUCs want to start taxing cable modem lines, that's a different story altogether. But as of now, they've been left alone - at least where I live (*).

      In either case, applying a tax or assessing a USF fee Vonage (et al) is just inappropriate. Either because the money has already been collected, or because it's running over an infrastructure that isn't part of the PSTN and is outside the current taxation/governance of the PUCs. It's a much more compelling argument, to me, that we talk about regulating and charging USF on cable modems, because in that case we're talking about taxing something that (just like the phone company) has a natural monopoly. There, I can see justification for applying a tax. But not at the VoIP level. That's just data. And once we start deciding to tax data, we're going to get into a situation where we have to decide what data does and doesn't get taxed. And more importantly, we have to figure out a mechanism for monitoring all of the taxable data types. IMHO, this is not effective.

      (*) Ironically, my state is getting sued by DirecTV and Echostar due to the fact that they do NOT assess tax on cable companies. They argue that the taxes that are assessed on DBS TV systems (Dish & DirecTV) is discrimantory.

      Vonage is trying to claim they're not a phone company, yet advertising themselves as "The Broadband Phone Company."

      Vonage very much *is* a phone company. But we don't regulate phone companies just because they're phone companies. We regulate them because they've been given exclusive use of something that belongs to the public: physical access to public lands to lay cable (in the case of local & LD providers) or spectrum (in the case of cellular providers). In return for that exclusive access, they are required to maintain certain standards as a consequence of the grant of their monopoly. But in the case of VoIP, there is no public resource that VoIP providers are given exclusive access to which justifies the need for regulation or sta

      --
      Key to financial independence: Spend less than you earn. Save and invest the difference. Do it for a long time.
    7. Re:Can't undercut by bypassing regulations by LostCluster · · Score: 1

      We don't tax things because they're monopolies. We tax things because we need to tax things if we want our government to function. Restaurants aren't a monopolies, so why do most states tax meals?

      We require phone companies to provide standardized levels of service because we consider phone service a utlity, a service we just can't live without these days.

      If Vonage is going to set itself as a competitor to a monopoly, then something's not quite right with that picture. Monopolies by definition don't have competitors.

    8. Re:Can't undercut by bypassing regulations by LostCluster · · Score: 1

      In both of those examples, the phone lines never leave the physical building. You can even extend this to college campuses, where the phone service is usually lumped into student housing fees.

      In all those cases, the phone line stays within the orginization, and that's the key. They're not offering phone services to the public, they're offering phone services to those renting place to stay/work there.

      And don't think that market is unregulated either. Yeah, they can charge a higher price for use, but they have to allow free access to toll free numbers, and allow access to the long distance provider of your choice via a 1-800 number.

    9. Re:Can't undercut by bypassing regulations by mjh · · Score: 1

      In the case of the phone companies, the only justification that I'm aware of for taxing them is that they're a monopoly. If the situation were different and did not lend itself to the monopolized environment that we currently have, we simply would not *need* any governing agency to fund. Competition, all by itself, will fill demand. Need stable service, someone who comes up with an idea will provide it. Need E911 service, competition will figure out a way to provide it.

      But that's not the situation we're in. We've got a monopoly on the cables. And rightly so. The alternative is too messy. *BUT* in lieu of competition to ensure that the provider is reasonable, we need a governing body to govern the monopoly, and that governing body needs funds. Lose the monopoly and you lose the need for the body to govern it. Lose the body, and it no longer needs funding.

      The thing that the phone company has a monopoly on is the cables. I don't really understand why you would dispute this. Every CLEC in the country knows who owns the cables and who's been granted monopoly ownership of the right to lay cables in a particular municipality. No one else is allowed to lay cheaper cables. No one else is allowed to go in and repair the cables. Consequently, if someone figures out a cheaper way to distribute phone service over cables, no one else is allowed to implement it. And frequently, the ILEC has no motivation for do it. The ILEC has a state granted monopoly on the rights to lay cables. The ILEC is required to *share* access to those cables, but they own them and no one else is allowed in.

      And that's a problem, because new and more efficient methods have little or no chance to get implemented unless the ILECs agree with it. It doesn't matter if the customer demand is high, and a competitive business is willing to make a different profit margin than the ILEC. If the ILEC doesn't like it, nobody gets it. This problem is cleverly avoided by VoIP, since their service doesn't rely on laying cables. So yes, the VoIP providers compete with the ILECs on one level - they are a phone company. But they don't compete with them on another level - they do not run competitive cabling throughout the municipality. In fact, they're not legally allowed to compete with them on that level.

      --
      Key to financial independence: Spend less than you earn. Save and invest the difference. Do it for a long time.
    10. Re:Can't undercut by bypassing regulations by LostCluster · · Score: 1

      Your understanding of the way things works seems a bit broken...

      Taxes do not need justifications linked to what they're assessed against. It's sometimes politically popular to link a tax to "because it's wrong" or "because that's what causes the problem we need to pay for" but there's no need to do so. Taxes exist simply because the government needs to raise money somehow, and the government arbitrailily picks the things it wants to tax through a process called "legislature" based on what's politically acceptable, and what actually can be effectively taxed.

      What's more, the telco is actually a "natural monopoly", which is to say that if market forces were left to play with no regulation, you'd end up with exactly one national phone company. See, there's nothing in the laws that prevents you from going to your home town's cable licencing authority (that's usually the mayor or city council) and the state regulatory board and applying to build a 2nd cable system in your home town, and on that coax/fiber network you can offer your own cable TV, phone, and Internet services. What's preventing this from happening is the law of economics... assuming you're wealthy enough to have the money to build such a thing, it wouldn't be a smart use of your money. You see, once you "overbuild" the existing monopoly cable company and threaten the ILEC with a digital phone service (BTW, cable company digital phone services have to comply with telco regulations...), both companies stop being monopolies in your area, your a competitor. And as a non-monopoly, the cable company and the ILEC will straighten up and fly right, and offer better service than you do. Let's face it, even if all things were equal you could never hope to get 100% of the market, you'll be fighting to convince enough people to switch to get a 50%/50% split. Come on, there's better investment options than that out there... you're better off buying stock in the existing monopolies than trying to challenge them.

      There's nothing in the laws of the land that grants the ILEC a monopoly. There's nothing in the laws of the land that grants the cable company in your area a monopoly. Try getting Congress to repeal the laws of economics sometime... oh, so THAT's what regulation is. :)

  7. Breaking the monopoly... by Chayce · · Score: 2, Interesting

    I know this is kinda redundant... but does anyone know how much a phone call really costs? Here in the states we pay way more than most other countries... Traviling abroad showed me that. In fact calling home (Texas) from Greece, or Spain, is cheaper than calling from austin to san antonio... I mean really halfway around the world cheaper than a couple hundred miles. The only reason why it's so expensive here is that we have more regulations than other countries, and fewer telcoms. If the price was lowered to next to nothing, at least somewhere within the ballpark of what the costs are, then the govenment could reap large amounts of money, not from the high taxes but from high use...

    --
    I like replies better than Karma, even if they are flames, because that tells me I got someone thinking.
    1. Re:Breaking the monopoly... by LostCluster · · Score: 1

      You're forgetting that in most of Europe "the phone company" is a money-losing government monopoly...

    2. Re:Breaking the monopoly... by Anonymous Coward · · Score: 0

      I know this is kinda redundant... but does anyone know how much a phone call really costs?

      Very little. There are companies advertising 3 cents/minute for domestic US long distance. Therefore, the cost must be less.

      Here in the states we pay way more than most other countries ... Traviling abroad showed me that. In fact calling home (Texas) from Greece, or Spain, is cheaper than calling from austin to san antonio

      Shop around. You're on the wrong long distance plan. More than 5 cents per minute for domestic US long distance and you're being badly ripped off.

    3. Re:Breaking the monopoly... by E_elven · · Score: 1

      No, it isn't.

      --
      Marxist evolution is just N generations away!
    4. Re:Breaking the monopoly... by sniggly · · Score: 1

      No in eur you use a long distance company, the state lost monopoly on long distance AGES ago, few national carriers are still government owned, sometimes the govt has ownership of something like 25% So no, the fact that I pay about 6 eurocents ($0.05 US) per minute to the US is because of deregulation and good old capitalist competition. Before the liberalisation of the eur phone market a call to the us cost about $1 US (one dollar) a minute, but thats more than a decade ago. Time for you to update!

      --
      Of those to whom much is given, much is required.
  8. Just use end to end VoIP by Skapare · · Score: 4, Insightful

    Once there is enough high speed IP deployed, we can bypass the traditional voice phone network entirely, and run voice over encrypted end to end IP connections. Imagine "dialing" in the form of domain names. The only reason the regulators are getting into this is because VoIP services are interfacing with the existing voice network. More work needs to be done to phase that voice network out of existance (which will be a long slow thing).

    --
    now we need to go OSS in diesel cars
    1. Re:Just use end to end VoIP by sipmeister · · Score: 1

      Imagine "dialing" in the form of domain names.

      That is exactly what SIP (Session Initiation Protocol) does. Instead of a phone number, a SIP URI (Uniform Resource Identifier) is dialed (e.g. sip:me@sipcall.com). IP phones that support SIP, like the Cisco 7960, Pingtel xPressa and others, allow dialing SIP URI's via the numeric keypad. Mobile networks based on 3G/UMTS (release 5) use SIP for signalling, blurring the line between the PSTN and IP communications.

    2. Re:Just use end to end VoIP by Skapare · · Score: 1

      One thing that would be important with this is to ensure that the traffic is not only encrypted, but also that the nature of it (that a given session is voice traffic) is hidden. So other kinds of traffic need to be using the same thing. With TLS/SSL, the port number used is still in the clear, so the type of traffic can be inferred. While it would still be possible to do something else of that encrypted path, what is really needed is that the standard allow the end point only to know anything about what services are involved in the traffic. If encrypted tunnels are used for everything, that can help. Better be sure the peer is authenticated to avoid man in the middle interception.

      --
      now we need to go OSS in diesel cars
  9. That is a TROLL Link! by Anonymous Coward · · Score: 0

    Wake the FUCK UP and don't make this informative. Morons.

  10. Purpose of regulation irrelevant to VoIP by Texas+Rose+on+Lava+L · · Score: 3, Insightful

    The whole reason why telephone providers are so closely regulated by the government is that the market for land lines is a natural monopoly - that is, competition is impossible because a competitor would have to install a redundant network, which is prohibitively expensive. So, since monopoly is inevitable, the government regulates it to ensure the providers don't take unfair advantage of the monopoly.

    With VoIP, there is no monopoly. There can be dozens of different VoIP providers just as there's dozens (ok thousands) of pr0n sites or dozens of online bookstores.

    When we have a new technology, why don't we rethink the way we regulate things instead of just applying the old regulations to the new technology regardless of whether or not it makes sense to do so?

    1. Re:Purpose of regulation irrelevant to VoIP by Skapare · · Score: 2, Insightful

      The breakup of AT&T back in the 1980's was done all wrong. They broke things between local phone service and long distance service. The whole thing came about because of competition in long distance. Now we have competition in local calling, plus internet and VoIP. The one thing that remains a monopoly is the physical infrastructure. Had the breakup been done so that one well-regulated company owns and manages the physical infrastructure, and all the rest get to complete (with regulation gradually stepping in as monopolies emerge, to provide a resistance to that), then we wouldn't have all this fuss over so many regulatory and competitive issues as we have now. The one thing is that the company that owns the physical infrastructure has to stay out of the other markets (this isn't a business for the greedy), and needs to have capitalization to keep the infrastructure up to date with technological changes. What we really need right now is a "fiber everywhere" infrastructure that can carry everything. We could move to the model of having the one regulated infrastructure monopoly by creating it to build that fiber infrastucture, and phase out the existing infrastucture.

      --
      now we need to go OSS in diesel cars
    2. Re:Purpose of regulation irrelevant to VoIP by Seequeue · · Score: 1
      That whole regulation model is somewhat messed up. Anytime you have a regulator, they have to know very well what's going on in the field and be able to act accordingly.

      You're presuming competence and transparency anytime you regulate like this- you tell me how well they're doing!

      The free market way to regulate this is to accept that the physical network is a natural monopoly, and then to put up operation of it up for bid every 3-4 years (in regional chunks of course). That way the market ensures transparency itself (by providing information in the bidding process), and they don't have too long to reap enormous profits if the situation changes drastically. And you've cut out a major part of the regulator.

  11. Consittutional Rights?? by Avihson · · Score: 1

    Can someone show me just where in the Bill of Rights it talks about Corporations?

    In all the law and criminal justice classes I have been taking these past 2 years, I always got the impression that the Constitution and, more specifically, the Bill of Rights defined:
    the limits that the Government can infringe on the Pre-existing rights of Human Beings

    Corporations are entities created by governments, and therefore have only the rights granted to them by those governments.

    Now point me to a link that proves me wrong

    1. Re:Consittutional Rights?? by MSTCrow5429 · · Score: 2

      Corporations are created by individuals, not the government. They are only chartered by the government. Corporations are comprised of people. To infringe on the rights of corporations would infringe on the rights of individuals. All rights that people posses come from natural law, not the government. The only rights government has is those that the citizenry grant it. Corporation and tax laws view corporations as legal persons. You do not seem to understand the Bill of Rights, or to have read it. See the 9th Amendment, which clearly states that simply because a right is not listed in the aforementioned document, that does not mean it is not retained by the states and the people. This is akin to asking why raping a woman is not legal, simply because the right not to be raped is not explicitly listed. If I were you, I'd transfer, or barring that, do some independent study/thinking, because you aren't getting enough from wherever you are attending. You deserve to be better educated.

      --
      Slashdot: Playing Favorites Since 1997
    2. Re:Consittutional Rights?? by CaptainFrito · · Score: 1

      Read Bastiat's The Law. It argues that governments get their authority from individuals to protect individual rights. Thus, governments cannot ever plunder property or violate the inherent rights of one individual on the behalf of another. There is a reason that although regarded as one of the clearest-thinking economists, and The Law as one of the best essays on a just society, he is not taught in most republics or in most law or economics courses.

    3. Re:Consittutional Rights?? by Lord+MJ · · Score: 2, Insightful

      This is incorrect. People don't have the right to form corporations, that's a privaledge that is granted by the government. In exchange for the benefits of operating as a corporation (as opposed to a partnership) the corporation has to submit to any restrictions that the government imposes.

  12. Trolling for justification? by Bold+Marauder · · Score: 0

    That's what I suspect, at least. Call me paranoid, but I see one of two things happening:

    1)taking a cue from hiter and microsoft, there will be strategically placed 'audience' members who will ask carefully phrased questions that either bring up why they should regulate VOIP or will give the speaker an opening to justify said regulation

    2)They will do this for the sake of looking good, but then totally disregard it when it comes time to decide on the final legislation.

    Either way, the next two steps are already written on the wall:

    3)???
    4)Legislate!!

    1. Re:Trolling for justification? by RLiegh · · Score: 2, Funny

      I think your first point is off in tinfoil-hat-land, but I agree with your second point. I saw so many inititives and measures pushed thru behind closed doors in seattle after only a token guesture at discussion that these days I don't even bother voting any more.

      It's not like they aren't going to do what the hell they want anyways.

    2. Re:Trolling for justification? by MSTCrow5429 · · Score: 1

      Tinfoil hat land? Have you ever watched a press conference, to say nothing of a public hearing? Really.

      --
      Slashdot: Playing Favorites Since 1997
  13. Mandatory California Recall Tie-In by MSTCrow5429 · · Score: 1

    Didn't Arnold say that the citizens of California were overregulated, among other things? Gov. Arnold will no doubt be more friendly to the free market than the Davis administration. Arguments, no matter if founded completely in fact, will not dissaude overzealous and unaccountable regulators from ignoring an easy power grab. The house needs to be cleared out.

    --
    Slashdot: Playing Favorites Since 1997
    1. Re:Mandatory California Recall Tie-In by Anonymous Coward · · Score: 0

      Vote Arnold.

      Clean the place out!

  14. Ok wrong forum! by Avihson · · Score: 1

    Send this to the Dave Berry one!

  15. This is double dipping by cpuffer_hammer · · Score: 3, Insightful

    You pay your telephony/data tax/fee when you pay your ISP, you should not have to pay again when you use send one kind of bit/byte as apposed to a different kind of bit/byte.
    If you do have to pay then you should be able to subtract the amount from the tax/fee you pay though your ISP.

    Now the moment one of these DSL providers starts connecting lines to peoples houses or other locations then they are a Telco and should act like one.

    I think this is more like a regulatory barrier to entry into voice communications or protectionism for the existing Telco.

    1. Re:This is double dipping by Anonymous Coward · · Score: 0
      "If you do have to pay then you should be able to subtract the amount from the tax/fee you pay though your ISP."

      Why? Afterall, they are providing a service(that service being the VoIP server) that isn't part of your telephone bill/contract.
      By your reasoning, I suppose that because I already pay for my phone line, I should get DSL service for free.

      I do agree with you, though. If they want to act like a telco, they should be regulated like one.

    2. Re:This is double dipping by Wesley+Felter · · Score: 2, Interesting

      Does my cable modem bill include the universal service fee? 911 fees?

    3. Re:This is double dipping by cpuffer_hammer · · Score: 2, Interesting

      What I am driveling at is that each phone call (line) should pay once. I don't think is is fare for the fee to be collected/recollected at each layer of the OSI model.

      So if I use a dialup line to make a voip call or call a voip gateway with my dialup line should I be paying the same 30cents for 911 fee twice?

      Some weak examples from the non digital world. You don't pay sales tax on a car when you buy it and then pay ex-size tax again when you register it. You pay once. And if you buy a car that never leaves your property (a pickup truck that is only used on a ranch) then you don't pay at all. Or another example is fuel. You are supposed to pay the tax where it is used. Thats why trucks have fuel tax stickers for all the states they are used in.

    4. Re:This is double dipping by Trepalium · · Score: 1

      Can you acess 911 from your cable modem? Even with VoIP?

      --
      I used up all my sick days, so I'm calling in dead.
  16. Welcome to Government. by Dr.+Bent · · Score: 1

    It's just like the mafia. If you're making money, they want a peice. Even if you're not, they still had better get thier cut...or else. The only reason the Internet hasn't been taxes thus far is because it'd be too hard to enforce.

    Powerful people expect everyone else to provide for them, and they always get more than they give. The only difference is that the government tells you what they're going to steal up front.

    1. Re:Welcome to Government. by JGski · · Score: 1
      :-) The analogy of "government as mafia" is apt.

      One of the most brilliant exposition on this idea is by the late economist Mancur Olson. I highly recommend the read. Amazon link

      The short summary: the separation of politics and economics is highly artificial (especially in America). The historic record shows that there is a continuum between political governance and economics which relates to the economics of political resource theft. On the far end is "Rape and Pillage" where the political tax is 100% - all is taken, literally, but by necessity "governance" must be nomadic because the "ruled populace/economic production" is destroyed utterly by "extraction". Think Ghengis Khan.

      Next is the warlord who decides to plant roots rather than roam. Hey, it's a young man's game and it's possible to extract more total tax this way. No longer can he tax at 100% however. Self-preservation requires at least survival of the means-of-production. But it need not be generous or comfortable for any but the warlord.

      Then the warlord structure transitions to a higher tax opportunity by expanding in geography. However, no one man can span that in either space or time, so lieutenants or fellow warlords/nobles need to be delegated and herititary rule must be established. This cooperation requires further reductions in individual tax collectable by the sovereign and the creation of tiered tax (lieutenants need added incentives and protections to take the risks of playing as warlord). Think Julius Caesar, Scipio, Fabius, Pompey, et al. Think middle age feudalism.

      The transitions to dictatorship/regal where graft (formerly lieutenants'/noble's percs) becomes essential to maintaining the status quo and will of the dictator. Think Magna Carta and British Empire as a pre-industrial case - Magna Carta gave democracy to nobles, but not subjects/citizens. The WWI & II with German industry or Meiji in the industrial age.

      Eventually the "graft/redistribution" becomes wide enough and diffuse enough that it becomes "democracy" where "everyone" who matters is getting some (no there is no bright-line between the two - think Slavery and Sufferage in the USA). Our dear lobbyists+contributors are precisely an evolved version of senior noble/thieves. The supreme court decision of Santa Clara County vs. Southern Pacific Railroad, which gave corporations constitutional rights as citizens, despite not having the ability/desire to fulfill the duties of citizenship, is the Magna Carta of our age, with many of the same original selfish origins of which we have not yet grown out .

      Olson also has an interesting discussion of communism which puts it in some ways into the real m of modern rape-and-pillage mixed with dictatorship.

      We in America separate politics and economics partly to retain the constitution as a sacrosanct pillar of stability. NB I prefer to keep that stability - I'm not arguing against that. Sometimes though, the separation distorts our view of reality and causes us to make very bad decisions - both of commission and omission.

  17. Re:More links by JamesDotCom · · Score: 1

    Well that was highly unpleasent, check the link before modding up.

  18. Wrong question by Borealis · · Score: 2, Insightful

    I think the question should be "how on earth are they going to regulate it", not when. VOIP is just data on the network. How long until there's an open source VOIP solution widely adopted without centralized control?

    It isn't going to be possible to regulate it without extensive packet monitoring.

    --
    Unbreakable toys can be used to break other toys.
    1. Re:Wrong question by Anonymous Coward · · Score: 1, Informative

      They already is www.skype.com from the makers of Kazaa. No interface to the PSTN, yet.......

    2. Re:Wrong question by Anonymous Coward · · Score: 0

      It isn't going to be possible to regulate it without extensive packet monitoring.

      Phone service using VOIP must connect to the phone system at some point - it's easy to track down.

      Now VOIP that DOESN'T use the phone system, that is much harder to track.

    3. Re:Wrong question by DrRiffic · · Score: 1

      skype is proprietary, not open source

    4. Re:Wrong question by Borealis · · Score: 1

      Well, today non-phone system VOIP not a very common option, but if we had something equivalent to "internet 2" say in about 10 years? 20 at the outset...

      Phone companies should be looking for a way to turn themselves entirely into an ISP business is what I'm saying, because their existing business model is going to go bye bye.

      --
      Unbreakable toys can be used to break other toys.
  19. TROLL - LINK IS SAFE by Anonymous Coward · · Score: 0
  20. Re:More links by Anonymous Coward · · Score: 0

    Wow, that was really interesting. It's too bad some people are offended by your views, but I guess that just goes with the territory when you're writing about a controversial issue such as this.

    I also wanted to add that the government should get out of the business of regulating VoIP. Information wants to be free.

  21. Encouraging people to mod down links by Anonymous Coward · · Score: 0

    just because you find their arguments 'unpleasent' is truly dispicable.

  22. Consittutional Rights??-personhood. by Anonymous Coward · · Score: 0
  23. Your post would be quite informative by Raul654 · · Score: 1

    If I could understand all the acronyms :)

    --


    To make laws that man cannot, and will not obey, serves to bring all law into contempt.
    --E.C. Stanton
    1. Re:Your post would be quite informative by Anonymous Coward · · Score: 2, Informative

      POTS: Plain Old Telephone System
      PSTN: Public Switched Telephone Network
      ILEC: Incumbent Local Exchange Carrier
      CLEC: Competitive Local Exchange Carrier
      USF: Universal Service Fund

    2. Re:Your post would be quite informative by Anonymous Coward · · Score: 1

      PTSN -- No clue

      POTS -- Plain Old Telephone Service

      ILEC -- Incumbent Local Exchange Carrier, e.g. SBC, Verizon, or Bell South

      CLEC -- Competitive Local Exchange Carrier -- an upstart telco that sells phone service in competition with the local ILEC. In most cases the CLEC doesn't actually provide phone service. It just resells service provided by the ILEC, who is required by regulators to sell the service to the CLEC at a discount, usually far below the cost of providing the service. Whether such an arrangement qualifies as "competition" or as a forced transfer of wealth is left as an exercise for the reader.

      USF -- Universal Service Fund (I think); a mandated subsidy program to provide Internet service to schools and libraries.

  24. MOD PARENT DOWN! by Anonymous Coward · · Score: 0

    SIG contains BAKLA link!!!!

  25. Above NeroTechCenter Link has moving pr0n windows by Tomorrowist · · Score: 1

    The above link has moving windows which make them difficult to close. there are no backstories. I gotta say, though, some of the ... crap ... is inventive.

    --
    Trolling for karma since 2003.
  26. Wrong question-Toll charge. by Anonymous Coward · · Score: 0

    If the goal in one's life is to collect a toll? Then charging by the packet would be easy (Fundamental to the technology). Doesn't matter what kind of packet. It would solve a lot of "new packet type (ToIP "Thoughts over IP")" problems. Were the money would go however is another question entirely.

  27. VoIP as a real service by BanjoBob · · Score: 3, Interesting

    I worked on a major telco VoIP project and we were working with SIP as a real telephone alternative. Cisco was involved as were other vendors. The whole scope of our project was to replace analog telephony with VoIP with a reliable and clean alternative. VoIP traffic has its own inherent problems which the industry is still trying to resolve.

    So, if the telco I worked for was trying to replace conventional telephone service with VoIP then why wouldn't it be considered a telephone service?

    --
    Banjo - The more I know about Windoze, the more I love *nix
    1. Re:VoIP as a real service by Dun+Malg · · Score: 1
      So, if the telco I worked for was trying to replace conventional telephone service with VoIP then why wouldn't it be considered a telephone service?

      What makes telco's accountable to regulation is their monopoly ownership of the last mile delivery medium. It don't matter a crap whether they used analog loop, TCP/IP, or fuggin' morse code to deliver service-- the salient point is that they own the copper, and that's what the regulation is based on. No one is suggesting that using VoIP exempts one from regulation, only that a company that does nothing but provide VoIP service isn't the same as a local loop provider.

      --
      If a job's not worth doing, it's not worth doing right.
  28. Save the telcos----not by Anonymous Coward · · Score: 0

    Let's look back.....
    Long distance was deregulated.
    I have a lesser expensive choice than the "bells".
    The "bells" cry to FCC they are loosing money from long distance competitors......
    Next phone bill has $7us added for not using "local bell long distance".........
    And now it is still there but not as much even if you go back to them == "FREE MONEY"

    Fast Forward.........
    "bells" to FCC - we're loosing money to all the FSF/OSS communistic VoIP dot coms.
    FCC - OK, you can send everyone a bill for $7us who does not have a POTS line and is connected to an ISP................

    FREE MONEY, PROFIT

    1. Re:Save the telcos----not by rock_climbing_guy · · Score: 1

      You better keep quiet about that one. Next thing you know, we'll be paying a fee to SCO for our telephones because there are *NIX routers at the call routing center.

      --
      Wh47 d1d j00 541, 31337 15n't t3h r0xor5 ne m0r3???
  29. constitutionality? by Anonymous Coward · · Score: 0

    Patents are mentioned in the Constitution to let the inventor make a profit from his invention for a limited time. This was meant to encourage inventors to publish the details about their inventions so that knowledge would pass into the public domain after a limited period of time.

    It does not grant the inventor the right to control how it is used.

  30. No big surprise by CaptainFrito · · Score: 3, Interesting

    C'mon, a Public Utilities Board, who make their living imposing regulations telephone companies want to regulate telephone traffic, and everyone is surprised? PUC's exist because of a lack of competition. VoIP is competitive and therefore poses a threat to their existence. It is self-serving mission creep that they should extend their own charter by thinking that they exist to regulate all forms of voice traffic. What is surprising, is, that it took this long. It was inevitable.

  31. We're done paying for the Spanish American War! by emil · · Score: 1

    These taxes were originally supposed to be temporary. It's high time that we got rid of them!

    They have no place in the world of TCP/IP.

    1. Re:We're done paying for the Spanish American War! by LostCluster · · Score: 1

      Unless California and Texas merged while we weren't looking, I think you're offtopic...

  32. Re:Attention moderators by Anonymous Coward · · Score: 0

    wow a troll on troll on troll. That is defintely a first.

  33. Your Right is to create a Trust by CaptainFrito · · Score: 0
    Corporations are an inferior descendent subset of trusts. The State franschises corporations so that they can write the Articles and thus "see" into the records without having to subpoena on the basis of substantiated evidence of a crime (at least, in most commonlaw based legal systems). That's why the super-rich always organize their affairs in "blind" trusts, almost always with a charitable remainder trust on the top.

    For a listing of all the families with these types of trusts, just watch the credits on most any documentary produced in the US. A common naming convention puts "Foundation" at the end. One requirement for a charitable remainder-based blind trust in the USA is that a percentage of the money be given to another legally-recognized trust. A favorite is producing documentaries since it allows the backers to "position" history.

  34. I don't get it--can someone explain VOIP to me? by swordgeek · · Score: 2, Interesting

    I've asked this before, I'll ask it again.

    Maybe I'm being thick here. It seems to me that what we need for VOIP is a peer-to-peer protocol, and network cards/stacks that have a guarantee of service, where in this case, the service is time-based. Now if I'm not mistaken, the Linux 2.4 kernel has 'quality of service' flags for network traffic (including IPv4), and IPv6 has it built into the actual model! Now if this is the case, there should be no need for VOIP "providers," other than ISPs that don't explicitly deny a particular traffic type. Now this is all theoretical for real-time conversations, but in practice it's much easier--people use things like teamspeak all the time!

    Can someone please tell me why we are looking to a centralised (and billable, taxable) VOIP strategy, instead of a direct peered (or even client/server) model? I honestly don't get it!

    --

    "People who do stupid things with hazardous materials often die." -- Jim Davidson on alt.folklore.urban
    1. Re:I don't get it--can someone explain VOIP to me? by Wesley+Felter · · Score: 3, Insightful

      Can someone please tell me why we are looking to a centralised (and billable, taxable) VOIP strategy, instead of a direct peered (or even client/server) model?

      So that you get a real phone number that anyone can call.

    2. Re:I don't get it--can someone explain VOIP to me? by Dun+Malg · · Score: 1
      Can someone please tell me why we are looking to a centralised (and billable, taxable) VOIP strategy, instead of a direct peered (or even client/server) model? I honestly don't get it!

      Well, because at present they are interfacing with the regular phone network, which requires a translation from the 10-digit phone system addressing to IP addressing and back. Additionally, if you want to be able to plug in your VoIP phone anywhere, there needs to be a central location that keeps track of which IP address you're currently reachable at. Peer-to-peer is great for things like music, where ANY copy of a song/movie/etc will do. Phone calls, on the other hand, pretty much require a connection to a specific individual. If you're calling John Smith (your boss), it's not good enough for a P2P system to give you the closest John Smith it finds.

      Dialing-via-IP might work, but that means anyone on DHCP gets their VoIP number changed at regular intervals. Can you imagine having to tell people "my phone number is 213-555-1234 for the next 72 hours"? Wouldn't work. You need some sort of fixed addressing, which requires centralization.

      --
      If a job's not worth doing, it's not worth doing right.
  35. Me and my VoIP Qual-it-ty by ljavelin · · Score: 1

    My only landline is VoIP. I work in a large organization - telephonically, we're closely coupled with Verizon.

    In any case, VoIP hasn't been the smoothest road to go down. I've had relibility issues at my desktop, and the phones and back-end are often down/rebooted for "maintenance".

    I'm all for no regulation, but one thing is for sure: the quality of service should be guarenteed to be as good or better than standard analog service. Right now, I feel I'm on the bleeding edge.

    Don't get me wrong: VoIP is cool, and it is fundamentally different than typical analog service - so the same exact regulations need not apply.

    But there should be strong rules in place in terms of quality of service.

  36. Breaking News: Man found in boy's anus by Anonymous Coward · · Score: 0

    Today: 8:30am, Central Florida

    A so called "man" nicknamed "MinnyBean" (aka MinnyQueen) was found buried head first inside a boy nicknamed "kc"'s anal cavity early this morning.

    A rescue worked stated "I have never seen anything buried so deep inside an anal cavity before".

    Both parties could not be reached for comment, and exactly how Minnybean got inside the cavity is still a mystery.

    Both parties also required medical attention. Both recieved a bottle of viagra and were sent home. KC had 20 stitches to close the hole.

    Photo: KC

    Michael Meyers
    Global News Daily (satire at its best).
    -
    -
    -
    -
    -
    -
    Disclaimer: if you believe this, then you are crazy.

  37. shoot yourselves in the foot by sniggly · · Score: 2, Interesting
    In Europe phone deregulation has created a huge market for ultra-low long distance (less than $0.05 US$ a minute to call from most eur countries to anywhere within the US)

    The same deregulation allows VOIP like Skype simply to take off without any questions being asked (so far).

    If the US were to regulate VOIP and tax it or otherwise inhibit its implementation it will just shoot itself in the foot and hobble into the "human communication over IP" era. Europe, Japan and most of the rest of the world will find no fault in VOIP.

    It remains to be seen if this is entirely true, former national carriers could try to make a last ditch effort but most of them are in such deep financial trouble that they really are dangerously close to bankrupcy.

    --
    Of those to whom much is given, much is required.
  38. 911 service should not be a telephone tax by ScooterBill · · Score: 1

    This is not a "use" tax. 911 emergency phone service is useful to everyone whether or not you have phone service. It should be paid for out of the general tax fund.

    The government will try and add taxes wherever it can to supplement the regular tax base.

    Anytime you see a special fee, surcharge or outright tax you should wonder why it's there.

    Using broadband for telephone service is one area where the government has no business.

    M

  39. I paid for MY Bandwidth so it's M I N E by Anonymous Coward · · Score: 0

    I use VoIP, and I am quite happy with it. I do not pay obnoxious bills to ensure a fat useless CEO gets their 7.8 million dollar bonus this December. Lets face it, land lines for communication are dead except for old backup purposes. Just another example of a company too greedy to try to compete so they lash out using poorly written laws to keep money grubbing and raping their customer's bank accounts.

    Afraid I am with Adam Smith on this one, leave the hand of government OUT of this as the consumer who pays will choose the victor.

  40. Arnold will support VOIP competition by Anonymous Coward · · Score: 0

    The reason telephone companies are regulated is because they are Monopolies. They have a monopoly over the copper pair to your house/business. Traditional telco switches run on the SONET network which is synchronized to one clock. Technology has changed and TCP/IP is making VOIP a real competitor (even Nortel makes VOIP equipment). The monopolies are losing customers to cell phones (I dumped my land line like thousands of others). Like their moves with DSL, the monopolies are trying to regulate their competitors out of existence.

    BUT technology and Arnold will put a stop to their anti-competitive behavior.

    Arnold's platform is clearly for competition.

    While they have been raking in big bucks, their greed has prevented them from investing in fiber to the home that would have allowed them to compete with cable and in the internet world. Fifteen years ago, our outside plant engineer argued that our small company should have begun installing fiber to the home because it was only marginally more expensive.

    Today, new technologies in wireless are going to totally obsolete the copper wire network. Even the Navajo nation won't need the high cost fund to serve their sparse population. Rather than expensive microwave towers and equipment, 802.16 will allow wireless phone service to remote populations 40 to 50 miles apart. Mesh networks of 802.16 will make Wi-Fi ubiquitous.

    The merging on the cell phone and Wi-Fi infrastructure will drive the copper wire monopolies out of business. Several new chips combine cell and Wi-Fi service with even the cell systems being challenged by Wi-Fi.

    It is not surprising that the telco monopolies try to use regulation as a way to damage their VOIP competitors before VOIP begins to overtake their technology. The only surprise is that a CPUC commissioner appointed by Gray Davis is taking a position for competition; maybe the telco's didn't contribute enough to Gray Davis' campaign!

  41. Why VoIP Will Not Be Regulated by serutan · · Score: 1

    Short Answer: Because VoIP is only superficially like telephone service in the sense that people talk through it.

    The purpose of regulating telephone companies was spelled out explicitly in the 1934 Communications Act, the year the FCC was created:
    "For the purpose of regulating interstate and foreign commerce in communication
    by wire and radio so as to make available, so far as possible, to all the people
    of the United States a rapid, efficient, nationwide, and worldwide wire and
    radio communication service with adequate facilities at reasonable charges."


    The whole basis for regulation was to ensure that rural customers (and independent phone companies) would pay about the same for phone service as people who live in urban areas, where the service is cheaper to provide. Rather than let the actual cost of the service create vast differences in pricing, regulation ensures more even pricing. In exchange for submitting to regulation, phone companies were guaranteed a profit.

    None of this applies to VoIP in any way, because it is not a basic telecommunications service. It's merely one of many services available through the Internet. Someone might make an argument that ISPs should be regulated, on the same principle as the Communications Act, but the differences between urban and rural service pricing would have to be a lot greater than they are. To single out VoIP makes no more sense than to regulate any other individual service available on the web.

  42. CA and Bay Area residents make your voice heard by amiramir · · Score: 1

    According to the CPUC's web site, you have to attend the meetings in person to make your voice heard. If you live around SF, make time to go to the meeting and let them know how misguided and ill-conceived VOIP regulation is. If you live in CA and can not attend, you can email your views to residents can send email to CPUC. www.cpuc.ca.gov for more info.

  43. cisco by austad · · Score: 1

    Wouldn't Cisco and other companies that make VoIP equipment have a vested interest in not allowing these silly taxes to happen?

    --
    Need Free Juniper/NetScreen Support? JuniperForum
  44. Re:Mandatory California Recall + Budget Tie-In by JGski · · Score: 1
    This whole VoIP tax issue is entirely about the California State budget deficit (despite that it's already been reduced from $30B to $8B since last year), and not about 1) rationality, 2) long-term economics, or 3) technological feasability. It's like when you can't make your bills and you decide to pawn your wedding ring and your work tools, as stupid and short-sighted as that might be. The consequences aren't being considered at all, in part because the problems will be on someone else's watch anyway so they're probably thinking: "fsck 'em, this gets me through my term, until I take that job the lobbyist promised me".

    By and large, the criminals, I mean "legislators", up in Sacratomato are technical ignoramouses in addition to being generally unethical, self-aggrandizing vermin. Such a VoIP tax only serves to slow economic development, punish risk-taking startups out of business, and push VoIP service underground or out-of-country into complete undetectability. What will/can they do if I simply reconnect to the PSTN from Puerto Rico or Guam (quasi-out-of-country), Canada or Mexico? Nada!

    And no, Aaahnold, isn't the answer. He's too thin-skinned to survive or be effective in Sacratomato. Gray's strategy is to "cocoon" which isn't much better. Ever notice how testy Arnie gets when someone teases him on something as minor as his accent - Wow! Very thin skinned. Clearly he's not used to people contradicting him or not fawning over him. All too similar to George W., I'm afraid. That lays the ground for unrealistic intentions and promises which end up being unfulfillable. Love him as a movie star - I have all his movie's on DVD; this is just too much of a stretch for him.

  45. they will never learn by aldousd666 · · Score: 1

    this is like taxing hotmail as a postal service. just because one technology covers the services previously only covered by another (ie. internet now covers what was once telco only) does not mean that they should be treated as the old entity. General Motors is not a horse-drawn carriage manufacturer. Nor is Vonage a telephone company. Damned stubborn politicians. They're not used to things changing so quickly. They'd better start getting used to it, and stop friggin complaining.

    --
    Speak for yourself.
  46. Having their cake... by JammingEcono · · Score: 1

    The whole "VoIP as telecommunications or data service" argument come down to two main issues for me:

    1) Is the service running over the ILECs/CLECs local network? If yes, the VoIP provider (Vonage, 8x8, etc.) should pay the appropriate fees (USF, access charges, etc.) to the responsible local POTS provider. In other words, PC-to-phone or phone-to-PC is a telecommunications service in the conventional sense of the word.

    2) If the service is exclusively PC-to-PC (even if it connects to a VoIP-enabled phone), it should be exempted from regulation since it is exclusively a data service. Since the data never touches the local PSTN, there's no reason that the VoIP provider (and subsequently the consumer) should be accountable for access fees, taxes, etc.

    Of course, this doesn't touch on the fact that the telecom carriers are saving a boatload of cash by sending their PSTN traffic over VoIP backbones all the while passing along new fees to their customers... That's a rant for another day.