Slashdot Mirror


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.

26 of 114 comments (clear)

  1. 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 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.
    4. 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.

    5. 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.

  2. 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: 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.

  3. 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.
  4. 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
  5. 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
  6. 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 Wesley+Felter · · Score: 2, Interesting

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

    2. 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.

  7. 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.
  8. 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

  9. 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.

  10. 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
  11. 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
  12. 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.

  13. 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

  14. 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.

  15. 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.

  16. 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.