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FCC To Hold First VoIP Hearings; Rules in 2004

securitas writes "The Federal Communications Commission (FCC) will hold its first hearings on Internet telephony and VoIP regulation on Dec. 1 and plans to regulate VoIP by late 2004. A public comment period will follow the Dec. 1 meeting. Some say that it is overly ambitious to regulate VoIP by 2004, especially since FCC Commissioner Michael Powell does not have a strong reputation for clarifying complex issues - instead he has a reputation for confounding them. More at Internet.com and InternetWeek . FCC press release (PDF1|DOC1) and attached letter (PDF2|DOC2) to VoIP proponent Senator Ron Wyden, who sits on the Commerce, Science and Transportation Committee."

33 of 146 comments (clear)

  1. VoIP by Beg4Mercy · · Score: 2, Insightful

    Is VoIP the same thing as these FREE (ad supported) PC-to-phone services which existed before the tech bubble burst?

    1. Re:VoIP by Gherald · · Score: 3, Insightful

      Basically yes, only you pay instead of ads.

      Now that the technology is gaining popularity and starting to be profitable, Uncle Sam wants to turn the beaurocrats loose.

    2. Re:VoIP by Davak · · Score: 4, Insightful

      The same thing is keeping me from switching to VoIP that keeps me switching to cell phone only... 911 access.

      When I can pick up my VoIP phone and the cops know where I am, that'll be when I switch.

      I just feel better knowing my family can pick up the phone and get immediate help...

      Davak

    3. Re:VoIP by bastion_xx · · Score: 3, Informative

      Kudo's on your family's safety. You might want to contact your local telco to verify the information in E911 is correct. Screw up on their end could impact response time.

      I use Vonage. Although sometimes the quality is sub-par, they were able to request my # from BellSouth and have it transferred to them. Also, they, as I'm sure others do, have the ability to link your address to 911.

      Personally I'd roll my own asterisk server and utlize someone like VoicePulse for incoming 800# and local access, but in the event my net connection is down, so is incoming voicemail. Vonage handles that for me and the email notification.

      Anyone know of a way to use an IAX or IAX2 provider and have them handle the PSTN termination and voicemail while allowing me to connect my Asterisk server to them?

    4. Re:VoIP by ewieling · · Score: 3, Informative

      There are a couple of projects that do VoIP and PSTN/VoIP types of services. The one I use is Asterisk www.asteriskpbx.org There are others Bayone comes to mind. Both are GPL'd. There are a couple of companies that do "PSTN replacement" type of services. Packet8 and Vonage come to mind. Both provide a small device that you plug into your local network and plug a phone into and you make calls just like a regular phone. There are a couple of other companies out there that do PSTN/VoIP services that are a little more technical to set up. VoicePulse has both a business class service and a consumer class of service. There's also NuFone and StealthTelecom. The URLs for most of these companies are fairly obvious. There are also companies that offer only VoIP/VoIP service, FWD (fwd.pulver.com), and IAXTel both do this.

      --
      I really shouldn't have used someone else's email address for this account.
    5. Re:VoIP by Ronald+Dumsfeld · · Score: 2

      >Is VoIP the same thing as these FREE (ad supported) PC-to-phone services which existed before the tech bubble burst?

      I never encountered ad supported PC-to phone services but recall absolutely dreadful pay services with echoes and long delays. Thankfully things have moved on a long way from there. VoIP is like talking on a cellphone in terms of quality and delay. With something like Free World Dialup you can talk, Geek to Geek, across the Internet for free, and there are underlying standards such as an agreed upon international prefix to access VoIP.

      If you browse the FWD mailing list you'll discover other goodies like POTS->FWD gateways down a large chunk of the East Coast of the US. There's also gateways in other countries, Washington State numbers that reach your FWD line etc. etc.

      Then there's the Linux-based PBX, Asterisk.


      Welcome to the maze of twistly little voiceprompts that are all subtly different.

      --
      Where's the Kaboom?
      There's supposed to be an Earth-shattering Kaboom.
  2. Does... by jeffkjo1 · · Score: 2, Insightful

    Does this mean that states are not allowed to regulate VOIP until the FCC reaches a decision? Or does anything change at all?

    1. Re:Does... by BitGeek · · Score: 3, Insightful

      The first ammendment applies to states as well.

      So, since we have free speech, regulating speech over VOIP is a violation of the constitution for either states or the FCC.

      Its flat out illegal / unconstitutional.

      Not that anyone cares about the constitution anymore... if you aren't trying to violate the first, you're trying to violate the second, these days.

      --
      Yeah, and you guys panned the ipod too: http://apple.slashdot.org/article.pl?sid=01/10/23/ 1816257
  3. Why by Emperor+Cezar · · Score: 4, Interesting

    Why is it the FCCs job to regulate a private internet. I can understand open airwaves that everyone controls, but the internet? I pay a private entity to connect to the internet, not the US government.

    The reason for the FCC to regulate VoIP is that AT&T and friends have paid off some congressman so they won't lose thier market.

    People, please vote Libertarian before we lose all of our freedoms.

    1. Re:Why by isdnip · · Score: 5, Interesting

      The FCC has no intention, I am quite sure, of regulating private VoIP, or any computer-to-computer applications. They're really, really, not interested in going there. (I do this stuff for a living. I'm not a lawyer, but I do regulatory work, and often write formal Comments on FCC proceedings. So I stay on top of this sort of thing.) Theoretically, they do have a lot of authority that they do not exercise. But for the past 25 years or so, their direction has been to exercise authority to prevent monopolies from impeding progress. The Internet itself only exists, for instance, because the FCC ordered AT&T, in the 1970s, to remove a restriction on "sharing and resale" of leased line circuits.

      The FCC is however interested in a number of very sticky questions that relate to VoIP. The telephone network itself is subject to fairly strict regulation, particularly the amount of money that each carrier is allowed to charge the other carriers on a given call. So when somebody in Virginia calls somebody in California over Qwest's network, how much does VZ in VA get from Q, how much does SBC in CA get from Q? Those are covered by detailed tariffs.

      A local leg of an interstate call is not treated the same as a local call. The current regulatory system is based on a system of classification, and that system is obsolete. VoIP increases the pressure on it.

      VoIP threatens that because it's so easy to sneak around the usual processes. The current FCC not-quite-rule (an April 1999 "Report to Congress", which is an unofficial policy statement) says that "phone to phone" VoIP calls are just plain calls, subject to the same payments as other calls. PC-to-phone calls, however, are undefined. And there are all sorts of variations. The big phone companies know it, and want to use their influence to make things go their own way. Small, rural local phone companies actually have the most to lose, because they get a much bigger share of their revenue from long distance settlements. Rural state regulators and legislators are very protective of these companies.

    2. Re:Why by dant · · Score: 3, Insightful
      But for the past 25 years or so, their direction has been to exercise authority to prevent monopolies from impeding progress.

      May have been true once upon a time, but two words put the lie to this belief: broadcast flag.

  4. Don't regulate them by cosmosis · · Score: 3, Insightful
    I find it interesting that they have already decided to regulate VoIP before they have had any public hearings. Why the hasty decision? And if since they have already decided to regulate, why the public hearings then? Sounds to me as is typical of the FCC these days, that public opinion is an afterthought.



    Planet P Blog

    1. Re:Don't regulate them by DAldredge · · Score: 2, Insightful

      Why? So they can tax it. Just look at how much of your telco bill is taxes.

  5. If they rule for some kind of control over VoIP... by LamerX · · Score: 4, Insightful

    If they rule for some kind of control over VoIP, then it's going to keep VoIP completely supressed, or high-priced. The local phone companies NEED some competition to make sure thier services don't get shittier and shittier, and the consumers need this to keep local phone prices low, and keep the internet free and open.

  6. Regulation not a universal evil by KD7JZ · · Score: 5, Insightful

    While I am generally in favor of free enterprise, I also do not mind a certain level of regulation. Regulation in the telephone industry is what allows you to pick up any phone, dial 10 digits and reach any other phone in the US. How would it be if you wanted to IM or VOIP your doctor and you are a Yahoo user and the doc is a AIM user??

    1. Re:Regulation not a universal evil by BoogleBoo · · Score: 5, Insightful

      A small amount of regulation can definitely be a good thing. If we didn't have car crash regulations, rest assure the big 3 would make cars even shittier than they do today. Same applies to any industry. You can't rely on a corporate entity to do anything in the buyer's interests.

      Problem with regulations is the standards tend to lack in quality and never seem to be upgraded/reviewed. Back to the car example... bumpers once had a 5 mph impact standard. It's often 2.5 mph today. With today's knowledge of metals and plastics along with detailed crash data, we should be able to make cars low weight that have 50 mph impact standards. Will companies do this out of the kindness of their heart? Hell no. Don't expect the regulators to improve the standard in the next 10 years either.

    2. Re:Regulation not a universal evil by sploxx · · Score: 3, Insightful

      And, further thought, regulation is not the same thing as standardisation. Standardisation processes and organisations should sometimes be regulated, but standards itself should not.

      (The word "regulation" here is meant as a government regulation)

    3. Re:Regulation not a universal evil by kfg · · Score: 2, Insightful

      And isn't that the sort of "regulation" that allows the internet to work at all without the FCC being involved?

      We already have standards bodies. Because of this I can email my doctor or interact with his web page without direct government control of the HTML standard.

      It is true that things can get a bit chaotic when new ideas are implemented, but then those new ideas are only free to develop because anyone with an idea is free to do so. After a time things settle.

      Like that number to use a landline. It wasn't born of government regulation. It was a commercially developed defacto standard before the regs were ever written. No, AT&Ts monopoly wasn't created by government regulation. AT&T had established a monopoly and the governemnt merely ratified the strategic position on the ground.

      Would you wish the FCC to step in and mandate AIM as the one and only IM protocol, especially since next year we might come up with a much better one?

      I think the internet is a still a bit too young to start ossifying it. Land lines still work. Most people still use them and/or cellphones. Let's see what the internet developers came whip up over the next several years before we start clamping down.

      The biggest problem with this idea isn't that it will hurt the standard phone companies. The problem is that the standard phone companies are already starting to route traffic over IP (you may already be using VoIP without realizing it) and this scares the FCC.

      All that control and all those tax dollars ( to pay their salaries) shot to hell by a new technology making them redundant.

      Well shit, we can't have that now, can we?

      KFG

    4. Re:Regulation not a universal evil by JInterest · · Score: 3, Insightful

      How would it be if you wanted to IM or VOIP your doctor and you are a Yahoo user and the doc is a AIM user??

      Well, in a free market, VoiP companies that didn't settle on a standard that permitted people to call whom they needed to call would soon lose out to companies that did, or the technology itself would lose out to another, more open, technology.

      Regulation isn't needed to promote standards. Standards tend to arise from market forces. If the FCC is getting into this, it is about control and tax revenue, not promoting uniform standards. Governments suck at uniform standards.

  7. can they regulate? by larry+bagina · · Score: 5, Insightful
    I question whether they can regulate. Not the timeframe (don't you just love the sound of deadlines as they go whooshing by?), but constitutionally. Particularly recently since the Senate refused to block states from imposing net-access fees, and the Supreme Court has lately scoffed at "interstate commerce" as a justification for laws.

    Everyone here would laugh if the US Gov't tried to regulate ftp, http, tcp, udp, ip, etc. They have no authority over VoIP either.

    --
    Do you even lift?

    These aren't the 'roids you're looking for.

  8. Nobody learns by The+Blue+Meanie · · Score: 4, Insightful

    The simple fact is that if the FCC and the US Govt gets heavy-handed with regulating VoIP, it will go underground, just like file and music swapping did when they clamped down on it. VoIP is going to happen one way or another. Whether it's done rogue P2P-style, or above-board remains to be seen.

    --
    "I feel that if a person can't communicate, the very least he can do is to shut up." -- Tom Lehrer
  9. The end user by sploxx · · Score: 2, Interesting

    I wonder what that means for the end user.
    It seems clear to me that they want to regulate VoIP, because it's the same application, only the transmission medium changed.

    BUT... what does that mean to the consumer(*)? Am I allowed to run my VoIP applications or are they willing to control that also (like in panama, see
    http://yro.slashdot.org/yro/02/11/04/0252201. shtml ?tid=95 ).

    This can get just another privacy issue. Because the enforcement of thus regulations needs control of the traffic.

    Are the traditional phone companies like AT&T losing? I don't think so. They are also providing internet services. They change become more an more
    ISPs. They *are* ISPs. There has always been competition. Now the internet is stirring up the market a bit. So where is their problem?

    Sometimes it seems that artificial problems are built up to get the public in favour of internet control (and the public is certainly there, now). Maybe not the population, but the ones that should decide for us. Maybe it's well-crafted lobbying.

    (*) - Starting to hate that word. I am not only a "consumer".

  10. Re:Spammers and VoIP by herrvinny · · Score: 3, Informative

    No, it's time. Each email spam takes like what, a millisecond to send? But with VoIP, you have to deal with bandwidth (takes a lot more to send voice than text) and the time it takes to go through any obstacles. The caller has to navigate any menu system, listen to any "please leave a message at the tone" messages, etc.

  11. VoIP regulation should not be allowed by eyefish · · Score: 4, Interesting


    VoIP is nothing more than an attempt by the Telcos to try to hold on to a market that is naturally sliping out of their hands.

    When one thinks about it, regulating VoIP is as stupid as trying to regulate chat programs; both are simply sending packets across and both run on off-the-shelf open-standards hardware and software.

    I only wish lawmakers (who are _supposed_ to represent the public) notice this and realize that consumers should not be scammed like this.

  12. VOIP Question by Anonymous Coward · · Score: 2, Interesting
    This may be a stupid question, but how exactly can the FCC or anyone regulate VOIP calls? How can they detect if I'm using a VOIP application over my internet connection to communicate using voice, rather than via a text e-mail?

    I don't doubt that if there was enough money and motivation it would be possible to detect and block VOIP packets on the public internet.

    It just seems that doing so what would require sniffers at all ISPs or somewhere to analyze, detect and block VOIP information. It would seem that this kind of effort would ruin the internet.

    Then again, there's lot I don't know and I might be missing something obvious ...

  13. Color me cynical by Agar · · Score: 2, Interesting

    Somehow I doubt that the FCC will "get it" and create a regulatory framework that makes any sense.

    However, there are a few good reasons for regulations. Phone service is considered a "lifeline" service. Without it, people can die ("help! I've fallen and I can't get up!"). That's why there are surcharges to support rural phone systems and keep the price down, as well as mandatory 9-1-1 regulations.

    Needless to say, taxing VOIP to pay for rural phones doesn't make a lot of sense today, particularly since the rural infrastructure is already built out.

    However, most VOIP services don't support 9-1-1 calling, which can be a huge problem in an emergency situation. Reliability is dependent on the underlying ISP, which can be an issue.

    The problem is that any regulatory framework needs to balance the needs of the industry to *benefit* the consumer. Granted those benefits may involve a trade-off (pay an extra $10 on the VOIP hardware to support a build-out of 9-1-1 bridges), but the benefit (emergency access) is supposed to be greater than the cost.

    Unfortunately, I think most in the government forget that they work for us, and are there to look out for our interests. When the balance is off (more cost than consumer benefit), you get an overly regulated, stifled industry that doesn't provide adequate (or value-added) service to the clients that are paying for the service. More often, the entrenched businesses simply get more entrenched.

    I fear that this is the political environment into which the VOIP will descend. There will be more focus on the regulation and less on the value that the regulations will bring to the consumer.

  14. interesting points that i see by zymano · · Score: 2, Informative

    Two paragraphs from the boardwatch website that i found interesting."

    The immediate issues at hand are whether or not VOIP telephony providers should be subject to the same rules and regulations as traditional phone companies. And, if not, what kind of rules are appropriate for these providers. Key areas of debate center around whether VOIP providers must offer an E911 service, pay into the universal service fund, and enable government agencies to tap VOIP calls (known as CALEA-compliance) for homeland security purposes

    Complicating the picture even further are the incumbent telecom providers that see VOIP as a giant threat to their installed business and are in no rush to see these services heralded into the mainstream. "The price of these new services is drastically cheaper, and the quality is almost as good," says Kelley Drye's Price. "It's a massive threat to the incumbents."

  15. Not directly related to FCC, but ... by skaya · · Score: 3, Informative

    (this is not directly related to the FCC matter ; but this is a long overview of the Telephone situation in France...)

    In France, we always had a reliable, but expansive and blood-sucking telco : France Telecom. They are the only way to go for residential users who want a telephone line, and in most place, the only providers of DSL lines (there are some places where you can get Internet thru Cable TV, however).

    The French ART (the Authority for Regulations of Telecommunications) however did enforce France Telecom to deploy a technical architecture to allow other ISP to join the DSL hype (to prevent monopolistic situation) ; so they did that - and people had to pay France Telecom to get DSL, and then an ISP to get Internet over their DSL line ! Two bills instead of one, great.

    But there was a catch : it was France Telecom who was operating the data connection, so they could limit the bandwidth of the service, and also enforced some silly things (like a daily disconnection). So the ART pushed further, requiring France Telecom to allow other operators to put their equipments in wiring cabinets, and do whatever they want with the copper pair going to the residents, the famous local loop.

    (Well, technically, they can't do whatever they want over the wire ; they only have access to the high frequencies. The voice frequencies are still operated by France Telecom, and there are filters (they call them splitters) at each end of the wire - like in regular DSL. But now, the operators can use whatever kind of DSL they like.)

    So, one operator, Free (www.free.fr) decided to do funny stuff. For the price of regular DSL, they offered more bandwidth (roughly twice more) with a better ping (twice less), with a funny modem : the freebox. If you're starting to wonder what this has to do with the FCC and VoIP, here we are : the freebox, besides Ethernet connector, has RJ11 connector (for telephone), and a SCART connector (for TV). Those guys are planning to offer TV service real soon now, and they already offer telephone thru their network. Calling from a freebox user to another one is free ; and until end of 2003, calling from a freebox to anywhere in France is free, too. Calling a freebox user is low cost (local communication rate).

    So, those guys are deploying an almost-free VoIP network. There must be a catch ; why are other operators not moving ? Well, not everyone can get the golden freebox. You have to be really close to the DSLAM (the telephone concentrator), and in a zone where Free did already install some hardware in the wiring closets. So, it's more like an experiment than a widely available product.

    But I betcha some beers that when they go wide-scale, things are going to get messy. Because after wasting billions of euros into Orange (their GSM cellphone network), France Telecom really doesn't need someone to eat their main stream of revenue ... So I'm eager to see how things are evolving with the FCC, to compare with what will maybe happen here in a few months/years :-)

  16. Do you really think the FCC will cede power? by stox · · Score: 3, Interesting

    Personally, I think everyone is mis-reading this. It has nothing to do with the ILEC's and everything to do with the FCC maintaining its power base.

    Most of the big players in Telecom have announced intent to carry the majority of their traffic, in the near future, over IP. No way the FCC is going to let the single biggest piece of its influence walk away.

    --
    "To those who are overly cautious, everything is impossible. "
  17. VoIP by Molina+the+Bofh · · Score: 2, Interesting

    Some years ago I tested VoIP and it simply sucked. It needed special hardware, headset, and was just plain annoying. But last week I tested Cisco's ATA 186, that has allows a regular phone to be connected to the network. I was astonished with the voice clarity. I called from Brazil to a branch we have in the US, and the quality was outstanding. No noticeable delay, nor echo. Of course there must be a delay (at least 87 ms, as a ping test averages 175 ms), but it's too low to notice in a regular conversation, and far smaller than in a regular international phone call.

    Considering the company I work for spends about $3000/mo in int'l phone calls alone, after I showed it was cheaper and better, I was authorized to research and install it between our offices.

    It's easy to connect 2 offices, but I wanted to do a little more... To allow our roaming users, from a cellular or regular phone, to call the local office and be able to reach a dial-out on the remote office, so the only chargeable phone calls would be local area ones.

    Problem is: I have no idea of what equipment I should buy for this task. It'd be nice if the caller would be asked a pin#, and we'd be able to print a report of the calls later. The number of lines will be small, about 3 or 4. The equipment must be available in the US. Any tips ?

    --

    -
    Roses are #FF0000, Violets are #0000FF, find / -name '*base*' |xargs chown -R us && mv zig greatjustice
  18. FCC wants to regulate everything by griffinn · · Score: 2, Insightful

    VoIP doesn't need federal regulation. Being TCP/IP based, it fits naturally into the loose management model that serves the Internet so well.

    If it ends up being so overregulated as telephone system, it will eventually raise the operational cost of VoIP so much that it eliminates the primary incentive of switching to VoIP -- cost.

    Killing a promising technology at its infancy, smart move.

  19. Not a good direction by not_bio · · Score: 2, Interesting

    What bothers me about this is that it could make the internet open to being much much more restricted. Would video games that have built in VOIP now have to be able to dial a net 911? "That Fsking haxor is using a bot!!! arrest that 1337ass biatch!!" Would open source VOIP projects be canceled because they would have to register and pay a fee (though in net terms, that generally means it gets packed up and distributed from another part of the world so has minimized effect)? Same with free for private use ones like ventrilo. Having non-technically minded partisan people attempt to dictate technology is at best commical, and at worst scary. Of course the arguments about terrorism, drug dealing, and protecting children are going to be pushed. VOIP is way too general of a term to be considered as one technology. I doubt it will come to the point where someone who runs an encrypted voice server to talk to others across the world will have their doors knocked in by the fbi, but it could be forseable that they will get a huge bill from the FCC in their mail. Powell has so far been on of the most unconsumer friendly FCC leaders ever. His views on media consolodation and hdtv broadcasts were at a minimum shortsighted for the former and premature for the latter issue. The threat of consumers talking on the phone for way less than he thinks they should be paying is great. On the other hand, big businesses stand a ton to gain by unrestricted VOIP too. I do think there are some issues that should be addressed such as standards and spam calls. I do not think the FCC is the right body to be dealing with these issues. Probably the biggst threat to widespread adaptation of VOIP as a viable land line replacement is going to be the spam. It costs a lot of money to call someone on the phone say in the UK or USA from Nigeria and tell them to buy viagra or vicodin, not so the case with email and thus VOIP. Even if there was a fee for service model adopted, unlike land lines where if one wants to hack them they have to usually climb up a poll or do something involving wire cutters, with VOIP, the infrastructure is parked right on your computer. Hacking and spoofing will be issues too.

  20. great example. by twitter · · Score: 2, Interesting
    How would it be if you wanted to IM or VOIP your doctor and you are a Yahoo user and the doc is a AIM user??

    Wow, that one is easy, People can't rely on IM because US ISPs suck and that is a direct result of recent US regulatory effort. Broadband penetration is low and run by monopoly service providers who offer high prices and idiotic restrictions such as "no servers". Most people still suffer dial up, which is even less practical for IM. If the US had better ISP:

    1. IM would be possible.
    2. People would quickly ditch junk software and use things that worked with everyone. Computers that don't run 24/7 would no longer be acceptable and M$ would die.
    3. Phones would quickly dissapear as people migrated all of their communications needs to machines with brains, voice, pictures and the ability to access them anywhere. SSH a laptop and a hook up are all you need to get all of your stuff anywhere. This is so much better than the phone system which is expensive, non portable, mindless without optional equipment that does not do very well and has no real storage capacity.

    My non regulated GNU/Linux system does a great job of talking to any BSD, Mac, Unix or Windoze system without the first governemnt regulation. What was it that government regs gave you? Oh yeah, a 10 digit number you have to remember. Sure, like that never happens outside regulation - TCP/IP - caugh.

    --

    Friends don't help friends install M$ junk.