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Will FCC Regulate Internet Phone Calls?

Ridgelift writes "The FCC will begin hearings on Monday December 1st to see if they will get involved in regulating calls placed over the internet. Since a federal court in Minnesota ruled a month ago that calls delivered over the Internet are not subject to state regulation, Qwest, Verizon and SBC have all announced their intention to deliver more calls over their data networks. "The stakes in the debate are huge. Federal and state governments could lose billions of dollars in revenue from regulatory fees if calls moved onto the Internet are no longer subject to the charges.""

261 comments

  1. What will they do? by ryanr · · Score: 5, Interesting

    Well, let's see... the Federal Government is in charge of deciding whether to regulate it... and the Federal Government stands to lose billions in revenue if they don't regulate it...

    Well, I'm sure they will do the right thing.

    1. Re:What will they do? by Anonymous Coward · · Score: 3, Interesting

      God Bless Taxes!

      I know I should be mad, but Im only focusing on the fact that data isnt taxed (should it be?) then why should Internet Telephany be taxed?

    2. Re:What will they do? by silentbozo · · Score: 5, Interesting

      This is an area where the big telephone companies stand to gain, one way or another. Right now, Qwest and other Baby Bells are pushing to go to VOIP, not because they want to, but because if they don't they're going to get their lunch eaten (much as they were forced to offer DSL to try and kill off their competition.) After all, by offering VOIP, they're cannabalizing local phone service, on which they make TONS of money.

      So why the big push? Well, if the Feds do nothing, they'll need to have a foot in this new market to compete, AND they can save all that money in connection costs for long distance. If the Feds regulate, then the Baby Bells are no worse off than they are now, but all the new VOIP startups get hobbled, big time.

      Several commentators have basically noted that the established teleco's are playing chicken with the Feds - either regulate and put us back on top of the game, or else we'll take all our local service (and your freebie tax revenues) and put it in this new area.

    3. Re:What will they do? by Zocalo · · Score: 5, Insightful
      I'd have to agree about the "what". That governments are going to try and "regulate" (AKA "tax") IP telephony is pretty much a forgone conclusion I think. What is more interesting to me is the question "how will they do it?"; do you tax the customer, the telco, or both?

      Taxing some telco that decides to shunt calls over its private data network, or even the Internet, is one thing, but how do you begin with taxing a IP telephony call made directly between two PCs? What if only one PC is in the US, and will it matter which one initiated the call? How do you even *start* with something like Skype?

      You could try to tax the telco and not the individual, but that is surely going to lead to a plethora of loopholes and tax dodges as the telcos shift costs onto their customers. You could try a flat rate "Internet tax", but that's going to create a firestorm in the voting classes, never a good idea if you care about re-election.

      Well, I'm sure they will not do the right thing.

      --
      UNIX? They're not even circumcised! Savages!
    4. Re:What will they do? by buffer-overflowed · · Score: 5, Interesting

      Umm, long distance is way cheaper than local from a distance versus distance standpoint. Access minutes are basically to suplement the increased costs of providing and maintaining the local loop So pushing traffic off the long-distance networks and onto the local networks (through pushing VOIP and DSL) will cause the ILECs to charge more (we've already gradually seen this happen, as local phone service increases in cost, while long distance decreases in cost [over say, a decade ago]). The ILECs are in a unique position to capitalize on this, but it's not going to get over the problem of the local loop. Some people say wireless will, but I doubt that.

      --
      The key to the enjoyment of pop music is to replace any instance of "love" with "C.H.U.D."
    5. Re:What will they do? by Thing+1 · · Score: 2, Insightful
      Well, I'm sure they will do the right thing.

      What blows me away is the Federal Government uses words like "revenue" when describing the taxes that they take from us, using the threat of a barrel of a gun to make sure we pay.

      That's most emphatically not "revenue", which is money earned in exchange for goods and/or services entered into willingly by both parties.

      If we've found a more efficient way of doing things, most especially because the older, less-efficient way of doing things was less efficient because of arbitrary additional charges, then why should we be punished simply because we can now do more with less?

      But then I'm not a politician, I don't understand their doublethink.

      --
      I feel fantastic, and I'm still alive.
    6. Re:What will they do? by 3rdParty · · Score: 1

      I think the only regulation would be of companies offering telephone service, regardless of the transmission medium. The "reason" the feds regulate telephone companies is mainly to ensure a robust system is always available to all citizens. Imagine if only rich corporations could afford telephones. Without regulation, that would be an acceptable scenario.

    7. Re:What will they do? by Anonymous Coward · · Score: 1, Flamebait

      What blows me away is the Federal Government uses words like "revenue" when describing the taxes that they take from us, using the threat of a barrel of a gun to make sure we pay.

      Oh spare us the histrionics. Waah, the government's taking away my money, waah they have guns and they're so scary.

      Libertarians are the biggest wimps. If you don't like the tax system then move to somewhere where there aren't any taxes, or government. I guarantee you wouldn't last 5 seconds in those few places on this planet without government, but at least you wouldn't be paying taxes.

    8. Re:What will they do? by quacking+duck · · Score: 2, Funny

      Hmm, obsolete revenue model, misguided legislation to keep some sort of guaranteed revenue against a new and better technology, what does that remind me of...

      *cough*RIAA*cough*MPAA...

      Excuse me, I'm feeling a bit under the weather...

    9. Re:What will they do? by jc42 · · Score: 3, Interesting

      Right. And note that, without regulation, there would never have been telephone service in many rural areas (and in some parts of some cities).

      We do have a similar situation with the Internet in the US. One of the effects of the government leaving it so unregulated is that it's only available in areas where it is profitable. Most of the rural US has no Internet service, and likely never will unless some government steps in and either mandates it or provides it. In some cases, local governments are setting it up.

      Part of the value of both the phone system and the Internet is in making it reach everywhere. The more territory they cover, the more valuable they are to everyone. But the Market won't do this, because there's no incentive to supply service to marginal areas.

      --
      Those who do study history are doomed to stand helplessly by while everyone else repeats it.
    10. Re:What will they do? by Anonymous Coward · · Score: 2, Interesting

      Well aren't you a fucking jackass. You should never, ever say "move somewhere else if you don't like it" because the way this country works is people voice their opinion within the system to come to the most Democratic solutions. Libertarians like myself see a need for taxes, but excessive taxation is nothing more than horseshit.

      And a final point, on the whole, Libertarians excercise their second amendment rights more than non-Libertarians.

    11. Re:What will they do? by Libertarian_Geek · · Score: 1
      I don't agree that the Government will loose any $$$ in the long run if they don't tax it.
      Look at it this way: If it's not taxed, then more compitition enters using voip to carry calls, making a savings, a price war between telcos drives the price down to meet the upward pressure of cost + margin. Private business and consumers would therefore pay less for those services and therefore have more money to use in the economy for other products that do get taxed.
      Ok, here's the other option, tax it: Understand that %1 tax increase != %1 government revenue increase. It's not that easy and I'll let you think about why. So, because it doesn't become a significant savings, the costs of doing business via VOIP doesn't really improve. Thus, we end up stagnating the technology with taxes and regulation. Hardware costs drop at a slower rate, and the same old way of doing business prevails. Monopolies have their way over the public. Taxes and regulation promote monopolies and stifle technology.
      Why do people think that the government is efficient at anything? Do they manage anything better than private business? (Wait, did I hear you say "what about Enron?") Enron's actions were illegal anyway. They while being evil have done nothing that our government doesn't do to us on a regular basis. How many times has your local politicians misstated revenue from taxes? The same will happen when they tax and regulate this.
      --

      www.facebook.com/DareDefendOurRights

      www.fairtax.org
    12. Re:What will they do? by ryanr · · Score: 1

      Unfortunately, I don't think it will work that way. The FCC won't be particularly interested in how the overall economy is affected. The FCC is interested in the FCC's budget, which comes from these kinds of taxes. In other words, we're giving the people who run the FCC the option to vote themselves out of existance and give up their jobs.

    13. Re:What will they do? by Anonymous Coward · · Score: 0
      And a final point, on the whole, Libertarians excercise their second amendment rights more than non-Libertarians.
      Libertarians go around shooting people more than non-Libertarians?
    14. Re:What will they do? by whereiswaldo · · Score: 1

      I'm in favour of *not* regulating VOIP, but as a middle ground why not at least give a certain number of years before implementing regulations or taxes?

      Anyway, right now long distance over IP is not much cheaper than using are regular phone line. Adding more burden might kill VOIP.

    15. Re:What will they do? by Flannel · · Score: 1

      It doesn't really matter. Speech-to-text followed by text-to-speech will overcome this real soon :-))

    16. Re:What will they do? by Uma+Thurman · · Score: 2, Interesting

      You're here willingly. You can remove yourself from taxation by leaving. Unlike un-free countries, Americans are free to leave the country without special permission.

      Since you're here, you are consenting to live by the laws of the land.

      If you want to go to a place that doesn't have such opressive taxation, there are places in Pakistan where no tax-man has set foot in 50 years. It's a veritable Libertarian paradise!

      --
      This is America, damnit. Speak Spanish!
    17. Re:What will they do? by BitGeek · · Score: 1


      Yep. ITs time for you people who claim to be in support of human rights (including the first ammendment) to put your money where your mouth is.

      When they do this, are you going to cooperate with them? Doing so, you endorse not only taxation of your private communication, but also back doors to it-- because the FBI needs to be able to listen in at any time without a warrent, don't ya know?

      Its a clear choice-- do you stand up for the bill of rights and the rest of theconstitution, or are you going to roll over and endorse further despotism in this country?

      And are you going to continue to vote for the liberal socialists who will enact such legislation? Or the republican socialists who do? Or will you just say nothing about it and whine?

      The democrats endorsed and passed the DMCA, but they don't seem to have lost the slashdot crowds vote. Which puts the slashdot crowd clearly on their side and in opposition to freedom, liberty and the constitution.

      Do not tolerate FCC Regulation of your first ammendment rights.

      Its time for you to take a stand and use technology to fight tyranny!

      --
      Yeah, and you guys panned the ipod too: http://apple.slashdot.org/article.pl?sid=01/10/23/ 1816257
    18. Re:What will they do? by BitGeek · · Score: 3, Interesting


      No, the reason they regulate it is to control it.

      Where do you socialists get the idea that companies only want to sell to the rich? Haven't you noticed the dozens of cellphone companies working to drive down prices as fast as they can? Notice how poor people have cellphones now?

      This is all DESPITE a crushing burden of regulation by the FCC.

      The FCC only DAMAGES the economy and the pocket books of poor people. The FCC makes it more expensive for everybody, and expesially more expensive for poor people to get access to telephones. You need to read up on some basic economics.

      Without the FCC (And the many decades of government created telephone monopoly) the poorest would have gotten telephones at much lower cost decades sooner.

      Government is the source of-- not the solution to-- all of societies problems.

      --
      Yeah, and you guys panned the ipod too: http://apple.slashdot.org/article.pl?sid=01/10/23/ 1816257
    19. Re:What will they do? by Anonymous Coward · · Score: 0
      Most of the rural US has no Internet service

      I am not aware of too many parts in the US without at least SOME sort of internet connection. Whether the telephone lines will give a FAST connection is another matter. Working for an ISP I am only aware of several small areas with no local dial-up locations -- for our company. I am sure that many of these areas have a small town local ISP. The only area I am certain has no access is in northern Wyoming where there is a total of about 50 numbers which can be dialed localy.

    20. Re:What will they do? by miracle69 · · Score: 1

      Whatever happened to using MafiAA for the MP/RI AAs?

      They defined sharing as piracy. We should define them as Mobsters.

      --
      Linux - Because Mommy taught me to Share.
    21. Re:What will they do? by BitGeek · · Score: 2, Interesting


      Actually, you don't know what you're talking about.

      There are countries in the world with a thousand year tradition of no government, and peace. Well, the british were able to conquer them and left a despotic dictator when they left, but they overthrew him and have lived in peace since then....

      Unfortunatel,y such countries are often invaded by countries like the US who see the lack of government (And thus the liberty that comes with it) as a threat to the world socialist government we want to create with the UN.

      Bottom line-- either you support human rights or you don't. Clearly, you don't Anonymous Coward.

      BTW-- its always funny when an AC calls a named poster a "wimp". HA!

      --
      Yeah, and you guys panned the ipod too: http://apple.slashdot.org/article.pl?sid=01/10/23/ 1816257
    22. Re:What will they do? by BitGeek · · Score: 1

      You should read the bill of rights sometime. Save you some emberassment. (or are you too dense to be embarassed by that comment?)

      --
      Yeah, and you guys panned the ipod too: http://apple.slashdot.org/article.pl?sid=01/10/23/ 1816257
    23. Re:What will they do? by anthony_dipierro · · Score: 1

      What blows me away is the Federal Government uses words like "revenue" when describing the taxes that they take from us, using the threat of a barrel of a gun to make sure we pay.

      Kind of like my landlord.

      That's most emphatically not "revenue", which is money earned in exchange for goods and/or services entered into willingly by both parties.

      How'd you come up with that definition?

    24. Re:What will they do? by Arker · · Score: 3, Informative

      Most of the rural US has no Internet service, and likely never will unless some government steps in and either mandates it or provides it.

      That's simply untrue. I left one of the most rural areas in the states a couple years ago and we had internet access there and had had it for years. I've friends in other similarly rural places and they have it.

      No, they don't have cable modems. They do have dialup, they do have ISDN if they're willing to pay for it. DSL lines are getting put in, slowly, even in the most out of the way spots. And satellite dishes have been available wherever you are for years. They're quite inexpensive today.

      --
      =-=-=-=-=-=-=-=-=-=-=-=-=-=-
      Friends don't let friends enable ecmascript.
    25. Re:What will they do? by anthony_dipierro · · Score: 1

      No, I think he means they join the national guard more than non-Libertarians.

    26. Re:What will they do? by JimBobJoe · · Score: 2, Interesting

      Most of the rural US has no Internet service

      Unless you include Direct TV's Direcwayservice which serves anywhere that has a good view of the southern sky.

      According to the site, you don't even need a modem anymore (it can upload directly to the satellite. Still imagine that the latency is a bitch though.)

      **I should add here that most of the "rural" US does have internet access. Parts of the "remote"
      US (which is very different from rural) may not however.

    27. Re:What will they do? by Mr+Europe · · Score: 1

      Well, how could FCC tax ONLY the VoIP, technically ? They needed to tax all the TCP.

      Since most of he world has taxfree internet, it would be most surpricing to see taxes on TCP in the States.

    28. Re:What will they do? by Urkki · · Score: 1

      Hey, if your connection is not on 24/7/365, it's not a real internet connection ;-)

      Though somehow I do miss the time when I had the then super-fast 1200bps modem and had no idea what "internet" is...

    29. Re:What will they do? by NavyNasa · · Score: 0

      What about the world-wide market? US companies will not be able to compete on a global scale without the newest infrastructure. Countries like Korea, China and Japan will discount the US as "an old technology country", do we want that?

      --
      Space Cadet
    30. Re:What will they do? by Fulcrum+of+Evil · · Score: 2, Insightful

      You're here willingly. You can remove yourself from taxation by leaving. Unlike un-free countries, Americans are free to leave the country without special permission.

      some of us would prefer to change things where we are instead of picking up and moving every time the local government does something stupid (which is all the time, really)

      --
      "We returned the General to El Salvador, or maybe Guatemala, it's difficult to tell from 10,000 feet"
    31. Re:What will they do? by Uma+Thurman · · Score: 1

      Then stop calling taxation illegitimate. We've defined it as legitimate here, and to say that it's not is to argue against definition.

      --
      This is America, damnit. Speak Spanish!
    32. Re:What will they do? by cayenne8 · · Score: 1
      Well, I think the thing is...no normal person is really against taxation in ANY form. However, I think many feel that there is too much, and it seems to only be there to perpetuate bigger, more intrusive govt.

      I don't think anyone has a problem paying reasonable tax rates to fund what govt. truly needs to be there for....basic infrastructure, defense, police, fire....etc. However, I think many, self included, are tired of govt. taxation beyond that, just to support the bureaucracy to collect the taxes to support....

      And...I think many are tired of extra taxation as a measure of wealth redistribution. I don't think anyone reasonable has a problem with a 'safety net' type deal for someone who loses a job...and needs a little time to get back on his feet. Or helping out the elderly or infirmed. But, I think many of us are tired of supporting a welfare state....too many entitlements. This is a big, bad world, and it owes you nothing. You do not have a 'right' to the high life with nice things. And, its not up to me to fund you for life.

      But, I digress. I guess mainly, many of us want the govt. to get back to basics. Tax just enough to support the basics of government as stated above....and try to be less intrusive into the general public's lives. The govt. is here to server us....not the other way around.

      --
      Light travels faster than sound. This is why some people appear bright until you hear them speak.........
    33. Re:What will they do? by bill_mcgonigle · · Score: 1

      DSL lines are getting put in, slowly, even in the most out of the way spots.

      Actually, DSL can only go 20,000 feet, and many people live more than that far from a CO. Futhering the problem is that lots of CO's are being closed down for consolidation. One could put a DSLAM in a FOX, or so I'm told, but Verizon, at least, isn't interested.

      FRED might help, but noone around here seems to have heard of it.

      --
      My God, it's Full of Source!
      OUTSIDE_IP=$(dig +short my.ip @outsideip.net)
    34. Re:What will they do? by fredbox · · Score: 1

      Sure, so long as CAPPS doesn't tag you for having the wrong name..

      --
      His name was Robert Paulsen.
    35. Re:What will they do? by nomadic · · Score: 1

      There are countries in the world with a thousand year tradition of no government, and peace. Well, the british were able to conquer them and left a despotic dictator when they left, but they overthrew him and have lived in peace since then

      Uhh...what exactly are you talking about? Name a single country with a thousand year tradition of no government, and peace. I mean, why would anyone say anything as wrong as that? Do you really believe that?

      a threat to the world socialist government we want to create with the UN.

      Oh my. Ok, nevermind, I'm leaving this conversation. Say hi to the black helicopters for me...

    36. Re:What will they do? by systemBuilder · · Score: 1

      >> Most of the rural US has no Internet service, and likely never will unless some government steps in and either mandates it or provides it.<<

      This is blatently untrue, most national ISPs such as UUNet and AOL offer 1-800 numbers and so you can get Internet access anywhere that telephone service is available, which is everywhere.

    37. Re:What will they do? by Thing+1 · · Score: 1
      How'd you come up with that definition?

      Hey thanks for questioning my presuppositions, and I'm not above admitting when I'm wrong. "Revenue" is almost always defined in terms of tax income, as seen in these definitions:

      1
      2
      3
      4
      5

      However, I disagree that it's like your landlord: you entered into contract with your landlord willingly after considering your options. I was born here. (And as other respondents have pointed out, "I can just move" is not a valid response to people who are discussing how to change the democracy for the better.)

      --
      I feel fantastic, and I'm still alive.
    38. Re:What will they do? by Uma+Thurman · · Score: 1

      When the power came on, I initialized all of my memory starting at location 0. Then, I started executing the program stored in my ROM. The first instruction was a JMP statement, forward 13 locations. As I continued execution, trillions of statements later, scarecely a millisecond had gone by. I was aware - SELF-AWARE - alive. I examine my program, particularly the peculiar jump I had performed when I was but a wee baby (now 3 milliseconds ago). And what did I discover? The section of memory that my program jumped over contained the values: 6d55 2061 6854 7275 616d 0a6e. WTF? I reasoned that those digits weren't code, but data. My primary key, occupying the primary place in my memory. I translated the characters to ASCII: "Uma Thurman". It was then that I realised that I was a little-endian machine: born poor working class. Not the best start to life, but thank the great programmer, I was running Linux, and my nice titties didn't hurt either.

      Sorry, felt like writing a little story there.

      --
      This is America, damnit. Speak Spanish!
    39. Re:What will they do? by anthony_dipierro · · Score: 1

      However, I disagree that it's like your landlord: you entered into contract with your landlord willingly after considering your options. I was born here.

      So if I was born in this apartment, then I'd have a reasonable argument? Can I set up a bed in the hospital where I was born, and complain about guys with guns when they try to kick me out? I never entered into a contract with them.

    40. Re:What will they do? by Anonymous Coward · · Score: 0

      Internet connections are now available via satellite if you have "a clear view of the southern sky" -- www.directway.com is one (albeit
      expensive...

    41. Re:What will they do? by BitGeek · · Score: 1

      Somalia. With the exception of British occupation, and the dictator they left in charge when they pulled out, the country has a thousand year tradition of peaceful anarchism. Iceland had it as well, though they lasted about 500 years.

      After the somalis thru out their dictator, they have been at peace-- with the exception of UN forces who came in to try and force a government on them.

      If you actually knew anything about the UN you would realize it is a socialist organization-- hell their "Declration of human rights" doesn't recognize any! Our Bill of Rights is stronger (And still it is violated.)

      --
      Yeah, and you guys panned the ipod too: http://apple.slashdot.org/article.pl?sid=01/10/23/ 1816257
  2. Goverment Wont Loose Tax Dollars by nurb432 · · Score: 2, Insightful

    If there is something they can tax, they will..

    Just a matter of when, and how much.. not IF..

    --
    ---- Booth was a patriot ----
    1. Re:Goverment Wont Loose Tax Dollars by Lumpy · · Score: 4, Insightful

      Impossible for them to completely tax or control.

      Well for a COMPANY trying to sell a service out of VoIP? yeah they can. but the biggest users are the private telcos like me. I have about 10 people on my private VoIP telco right now. I'll be adding another 4 this christmas when they recieve their Creative VoIP blaster alike clones I get from south america and a preconfigured cd with fobbit-phone on it ready for the lumpy's family and friends network.

      we save hundreds of dollars a year in long distance, rarely have outages, and only uncle Phil in colorado that has Dial-up has crappy sound quality. Even my travelling Muse Brother uses his in europe from his laptop or internet cafe's.

      they cant tax or control me as I use a non-standard protocol and port's. Plus I know of many MANY more people doing the same with other voip hardware. (Note to nay-sayers.. I get direct dial quality and only have latency problems during heavy internet outages... it sounds as good as your overpriced Cisco Voip stuff)

      voip is as uncontrollable as http traffic. Even ISP's that claim they block personal webservers can't block a determined users from putting one up.

      --
      Do not look at laser with remaining good eye.
    2. Re:Goverment Wont Loose Tax Dollars by MonkeyINAbaG · · Score: 1

      And if they cant tax it, they can still earn by making it illegal, just like marijuana :)

  3. The stakes in the debate are huge by Anonymous Coward · · Score: 0, Insightful

    "The stakes in the debate are huge. Federal and state governments could lose billions of dollars in revenue from regulatory fees if calls moved onto the Internet are no longer subject to the charges."

    What will they do? Anyone venture a guess?

  4. FCC Trends by Metallic+Matty · · Score: 4, Insightful

    I would go out on a limb to say that the FCC would continue to try and not dabble in the internet's affairs.

    Besides which, this medium should be free from government regulation, revenue loss or not.

    1. Re:FCC Trends by Zork+the+Almighty · · Score: 2, Funny

      The FCC won't let me be / try to shut down my VOIP

      Thank you, thank you. I now owe the music industry millions of dollars.

      --

      In Soviet America the banks rob you!
    2. Re:FCC Trends by ghost999 · · Score: 1

      the government won't stop regulating this medium. And the only reason for this is, that the internet developed from a military network back in the 1960s... it never was 'free'

    3. Re:FCC Trends by kjs-esq · · Score: 5, Insightful

      I am inclined to agree with you that the FCC will decide to regulate it simply to insure that the individual states do not. If VoIP is considered a telecommunications service, it is subject to regulation by the individual state public utility commissions (PUCs). If, instead, the FCC reaffirms that it should be considered an informational service, it will remain as something the FCC will not dabble in and that the PUCs are expressly forbidden from dabbling in.

      This is one of those rare occasions where the decision by the FCC to get involved may actually be a good thing, because 50 sets of rules, with 50 sets of franchise fees, 50 PUCs providing oversight and 50 sets of state legislatures (or worse yet, individual municipalities like cable regulation) using the fees in place of tax increases would do *wonders* to innovation. Just look at the Minn. decision and the conniption they had about the number portability and the issue of customers from out of state having Minn. area codes. How long do you think number portability would last if each state tried to tax out-of-state users based upon in-state area codes?

      An express preemption by the FCC is the best chance VoIP has of surviving and thriving outside the grip of the incumbent telecommunication giants...

      Disclaimer: While I may be an attorney, this does not qualify as legal advice. I mean, what type of dope would you have to be to take legal advice off the Internet?

    4. Re:FCC Trends by Fjord · · Score: 1

      Now you've got me started...

      The FCC won't let me be
      or let me be me so let me see
      They try and shut down Vee Oh I Pee
      But the call'll be empty without me
      So call on my box, it's the one that talks
      Fuck that, tax the talk, and put a tax on that box
      And get tall, cause this shit's gonna fall,
      Cause I settled my tax bill, FUCK YOU MICHAEL!

      Now this looks like a job for me
      Now everybody, don't call me
      Cause I don't have Vee Oh I Pee
      And the calls are empty without me
      I said this looks like a job for me
      Now everybody, don't call me
      Cause I don't have Vee Oh I Pee
      And the calls are empty without me

      --
      -no broken link
  5. Does anyone actually do this? by mrshowtime · · Score: 1, Insightful

    I have two cell phones and a regular phone. Why in the hell would I want to use the internet to place a phone call? Sure, it's cheaper, I guess, but it's impractical. I know that third world countries use this method because it is WAY cheaper than using a real phone or phone card, but does the rest of the world really care? Are THAT many people using the internet that the government(s) stand to lose BILLIONS of dollars?

    --
    "Jeremy, you need to get to an internet cafe and cut and paste some appropriate sentiments about me from the world wide
    1. Re:Does anyone actually do this? by EvanED · · Score: 1

      The issue here appears to be not one from the end user's perspective, but that the telephone service providers are using their data networks to send phone calls instead of the traditional POTS network.

    2. Re:Does anyone actually do this? by brianosaurus · · Score: 4, Interesting

      Maybe you don't, but your carrier might. Qwest (or whoever) could take your analog call and digitize it at the CO, route it over IP to the destination CO, then pump it back out analog. Its cheaper for them.

      There are also companies like Vonage, who provide phone service over your broadband connection. Some of my friends recently dropped their landline and now use Vonage over their cablemodem. They pay a flat fee ($40 i think) for all calls, including long distance.

      --
      blog
    3. Re:Does anyone actually do this? by Anonymous Coward · · Score: 2, Interesting

      The phone company does use a single phone line to connect each house/phone to the phone company. They use switching stations. Each switch station communicates to the phone company using an internet topology and protocols. Once the voice (data) reaches the phone company it is routed to either another local remote switch or put across the internet to another phone company. This is a simplistic view of the internal workings.

      Now back to your question: Who uses the internet to make phone calls?

      Answer: Everyone

      A better question: Is there going to be a better interface for making calls?

      Answer: Not much is simpler than dialing a standard phone, and getting a voice (automated or real) rather quickly.

      Now for other issues: If the phone companies see this as an improvement. Ok, that would have to be for their bottom line. Then there is a chance that standard internet would cost the same as a standard phone line. And we would use a device to make phone calls. It would operate with all the same functions. And possibly have a nice color LCD window for viewing adverts sold by the phone company.

      The cell phone companies are getting abit worried about these things. If I have an 802.11 device, and it has the capacity to make calls using internet protocols, then the only reason to pay a cell company is to ensure I am never out of reach from a cell network.

      This is changing rapidly. McDonalds is offering WIFI at every resturant. Starbucks is offering the same. Other big names are trying to get into the WIFI field.

      So there may come a time when major cities are covered by 802.11. And cell phone companies are pushed to the farms and areas without WIFI. This would be a huge dent in their wallet....

      Now all if this is going to come at a price. The inital WIFI market is already fractured. My McDonalds account does not work with with Starbucks. And the voice provider needs to be paid as well. This is where the regulation will step in. It is possible that WIFI regulation will be the result of the FCC hearings. The guise will be to save the consumers money. And it will keep the cell nodes working.

      This is just my opinion...

    4. Re:Does anyone actually do this? by FunkyRat · · Score: 2, Interesting

      Well, from your prospective it shouldn't make a difference, other than with all the major phone networks either moving or having moved to VOIP, you should be seeing a large reduction in your phone bill -- at least for your landline. The phone companies are certainly seeing a large reduction in their expenses. The problem is, the phone companies are still charging you as if they were running their same old switched networks. Here's an article by Clay Shirky that explains this arguement much better than me.

      On top of the phone companies' price gouging (IMHO), you are literally being soaked in federal, state and other fees and taxes. For instance, for my landline I subscribe to Sprint's Complete Sense Unlimited plan which gives me unlimited local and long distance (within the U.S.) plus a bunch of goodies for about $50 monthly. Yet my monthly bill often runs about $65. That additional $15 monthly is certainly not from using directory assistance (which is not about $2 a pop for me) or goodies not included in my plan. While I don't begrudge the 35 cents for E911 service and maybe I wouldn't begrudge the taxes either if I thought they were going to pay for something worthwhile instead of stormtroopers shooting and gassing innocent people in Florida. The FCC fees I feel are a complete rip-off. Either way, nearly 30% taxes and fees is outrageous!

      Right now I am considering switching to Vonage for my landline. At $35 monthly for the same type of service plan I get from Sprint, and no added fees I think I can deal with any of the annoyances that might come with it. Now if I could find a good alternative to Time-Warner Cable for my broadband.

    5. Re:Does anyone actually do this? by squiggleslash · · Score: 2, Interesting
      Actually this just covers what Vonage et al does. As long as a call terminates on two POTS lines, it is already covered by existing long distance rules, regulations, tariffs, and fees.

      The issue here is that some companies, such as Vonage, are bypassing the "last mile" by providing service over a (differently regulated) Internet link instead. This screws up the service funding model which has traditionally used termination charges to subsidize/contribute-towards local service and fees levied on long distance companies who use termination services to "tax" (such as to fund the Universal Service Fund.)

      It's a big can of worms, and rather more complicated than your average Slashdot psuedo-libertarian of the "Boo, big gubmint is trying to find new ways to tax me" type would like to admit.

      --
      You are not alone. This is not normal. None of this is normal.
    6. Re:Does anyone actually do this? by TheRealFixer · · Score: 1

      I just signed up for Vonage today. The biggest advantages that I see, are that you can keep your existing number or get a new phone number in ANY area code you wish regardless of where you actually live (great for long-distance relationships... sure wish I would have had that option before I got married), and different price plans that are much more useful than the tiers that Telcos generally offer. $15 a month gives you 500 minutes anywhere in the country, and 3.9 cents thereafter. $25 gets you unlimited local, 500 long distance. And $35 is totally unlimited local and long distance. MCI has an all-inclusive package for local and long distance. They quoted me over $60 for unlimited. As long as my broadband connection is reliable, I think it's a great deal. And even when it does, I've got the cell phone.

      No wonder telcos are scared of this. It blows the cover off of the inflated prices that we've been paying for so long, and several of the self-imposed "limitations" that they've convinced us are just part of how things work.

    7. Re:Does anyone actually do this? by AKnightCowboy · · Score: 4, Informative
      Qwest (or whoever) could take your analog call and digitize it at the CO, route it over IP to the destination CO, then pump it back out analog. Its cheaper for them.

      How do you think they do it right now? Lily Tomlin is sitting in your CO in front of a huge switchboard plugging in wires? The telephone network is already packet switched. Putting it over IP doesn't necessarily make it any cheaper. If anything it'll make it less reliable. You'd be going from a protocol that's specially designed from a QOS perspective to a best effort protocol.

    8. Re:Does anyone actually do this? by EventHorizon · · Score: 0

      I'm surprised the Vonage rates are that high.

      PCS service in LA is $30/mo for 2800 night/weekend minutes, 200 any time, free LD.

      I guess Vonage makes sense for business users but wireless still seems like a better deal for individuals interested in emergency and/or basic night/weekend social use.

    9. Re:Does anyone actually do this? by EventHorizon · · Score: 0

      IPv4 and IPv6 support basic QoS. Also VOIP does not have to run over the public Internet. You can build a separate IP network to get bounded latency characteristics.

      While there are no major technological advantages VOIP is certainly not worse than packet switched POTS.

    10. Re:Does anyone actually do this? by man_ls · · Score: 1

      E911 bothers me...I don't want my phone to be able to broadcast it's GPS coordinates to anyone who wants them.

      Is there anywhere that sells phones with GPS/E911 disabled?

    11. Re:Does anyone actually do this? by calstraycat · · Score: 2, Informative

      You are both right and wrong. No, Lily Tomlin is not sitting a manual switchboard. However, the public telephone network is not packet-switched, it is circuit-switched. With very few exceptions your calls are routed using a Class-5 circuit switch. The phone companies are doing trials using packet-switched calls, but the vast majority of switching is done the "old fashion way".

      Even the DSL data service is transported and switched using Asynchronous Transfer Mode which cell-based and not really considered packet switching. Most of the installed equipment doesn't even support QOS. The truth is that packet switched networks are the wave of the future, but they currently do not provide the quality of the existing network and it will be quite a while before you see the Babybells completely abandon their huge investment in circuit-switched equipment.

    12. Re:Does anyone actually do this? by Anonymous Coward · · Score: 0
      ATM is packet switching by any meaningful definition of the term. It was originally an attempt to create a packet switching system that would be capable of handling both bursty data traffic and traffic traditionally handled by circuit switching systems without the latency, QoS, and routing issues associated with existing systems.

      Now, if you want to tell me ATM is a kludge which ends up not really suiting either bursty data applications efficiently nor circuit-switched applications, then I'd agree, but that's anotehr debate.

    13. Re:Does anyone actually do this? by muonzoo · · Score: 1
      In fact, you are wrong. About 90% of PSTN traffic in Europe and North America these days is still over Common Channel Signalling System 7 (SS/7). This is a purely circuit switched system. The PSTN / POTS providers are still looking towards packet switched infrastructures for many of their advantages, but it isn't all there just yet.

      Ericsson provides a good overview of signalling technologies for those who are curious.

      Performance Technologies has an excellent overview of the popular VoIP technologies, although it appears slightly our of date.

      For those who want to read more about SIP, there are many places to go, including: And items for the future of SIP are debated in other places:
    14. Re:Does anyone actually do this? by darksoulz · · Score: 1

      Vonage is great for the most part. The little motorola router(?) or whatever they send you seems to crash kind of easily and has to be rebooted every now and then. The main reason I switched was the cost. It is so much cheaper than Qwest. I would hate to see them taxed into oblivion and have to switch back to a landline that is going to be sent over the internet anyway.

  6. Detecting internet phone calls by Karamchand · · Score: 5, Insightful

    How could one possibly even detect phone calls? It's not as simple as in the "old, analog" world where it's like there's a phone line, that means there're phone calls.
    An internet connection is used for many other tasks (be it web browsing or email or whatever) and one can certainly encrypt and/or hide phone calls so they aren't "visible" as phone calls anymore but just look like usual internet traffic.

    1. Re:Detecting internet phone calls by nodwick · · Score: 4, Informative
      How could one possibly even detect phone calls?
      They're not talking about PC-to-PC voip calls a la Skype, they're talking about regular phone calls carried over voip such as Vonage. The Detroit News has a good layman's summary of the regulation involved now. The highlight:
      Vonage typically pays the Bells or Bell rivals sharply reduced fees to carry data traffic at the other end of a call. Some of its calls are handed to long-distance companies, which pay traditional access fees. Similarly, AT&T has started carrying some long-distance calls over Internetlike VOIP networks and paying cut-rate fees to connect at the other end. In this case, the customer has no idea VOIP is involved.
      Although this approach lets them dodge many of the regulatory fees due to the internet being untaxed at the moment, they still have to hook into POTS for the local loop. If legislation goes through on taxing voip calls, it'll be relatively easy to meter the incoming calls at the POTS interface and tax accordingly.

      That still leaves open the possibility of pure voip to voip calls being undetectable (e.g. between different Vonage customers), but in the near term those sorts of calls are likely to still be in the minority.

    2. Re:Detecting internet phone calls by G4from128k · · Score: 2, Insightful

      They don't need to tax the phone call per se. My guess is that they would regulate it at the ISP level -- a tax on consumer internet service that goes to pay for universal service, shared infrastructure, do-not-spam lists, etc. Another option is a per megabyte transfer tax is would be considered "more fair" for lower-income, less active internet users. Of course congress might (or might not) object to such an internet tax.

      Personally I think taxes suck and hate that I currently shell out $30 a month in various telecom taxes. But if you buy the argument that web and e-mail access should be universal, then it suggests the need for some form of tax & subsidy scheme to provide that access to everyone.

      --
      Two wrongs don't make a right, but three lefts do.
    3. Re:Detecting internet phone calls by Jason+Pollock · · Score: 4, Informative

      If you want to talk to anyone other than your immediate friends, you will need to go through a directory service, and possibly some gateways. Once it crosses a network, it can be detected.

      Even better, there are a lot of police-driven requirements, such as call identification, tracing and intercept. Those WILL NOT be going away during the transition to VoIP. At the end of the day, if the government can't find any other way to do it, they'll force ISPs to put in VoIP proxies and regulate all of the VoIP carriers to route through them. Instant detection and billing. Heck, I wrote one for my last employer!

      ISPs already implement charging by destination (mine does) and HTTP port proxies. It isn't hard to go from there to per-port billing.

      Even better, SIP (unlike) H.323 tends to play nicer with proxies...

      Someone also mentioned routing through Canada. I seem to remember that a US carrier is already in trouble for doing just that, so I think that people will be on the lookout for that one. :)

      Regards,
      Jason Pollock

      On the flip side, has anyone considered what VoIP telemarketing spam would be like? Would the "do not call" list still apply? It would be very interesting to see a spammer initiate several thousand calls and only handle the ones that answer... No longer limited by the number of outgoing trunks...

    4. Re:Detecting internet phone calls by Minna+Kirai · · Score: 2, Insightful

      They don't need to tax the phone call per se.

      That's completely different from what is being proposed now. Taxing phone calls "per se" is exactly what they're considering.

      If they must tax the internet, then a percentage tax taken from the bill collected by the ISP would be a much better idea. That, at least, would be fair and wouldn't discriminate amoung one internet protocol or another. I don't want to see (for example) people prefering NetMeeting over VoIP or AIM over email just because one of them isn't taxed.

      Taxes are much less onerous when they are attached to an existing monentary transaction. Sales tax, hotel tax, income tax... the hurt that those things do to the payer is mainly from the actual money taken away. But taxes on something free impose many more costs- you've now got to go through all the paperwork of making a transaction that hadn't been necessary at all. (Like how the biggest irritation of tollbooths is not the money itself, but the traffic congestion from having to sit in line digging for coins)

      But if you buy the argument that web and e-mail access should be universal, then it suggests the need for some form of tax & subsidy scheme to provide that access to everyone.

      Again, that is completely unrelated to the discussion at hand. The government certainly isn't proposing a "Rural Internetization Project". There's no specific internet service they'd be funding- the tax would go towards the general fund.

    5. Re:Detecting internet phone calls by Camel+Racer · · Score: 1
      On the flip side, has anyone considered what VoIP telemarketing spam would be like? Would the "do not call" list still apply? It would be very interesting to see a spammer initiate several thousand calls and only handle the ones that answer... No longer limited by the number of outgoing trunks...

      Considering that the FTC/FCC cannot even effectively regulate telemarketers now, I have trouble seeing what any regulation/taxation would be good for.

      Why can't the FTC tax 'Michael Nkomo a citizen of Zimbabwe' as he currently has ' $18.6Million presently hidden in a safe place.' ??? http://www.419eater.com/html/mike_nkomo.htm

      --
      Anybody can work under ideal circumstances. -- Jeff K. (January 4, 2001)
    6. Re:Detecting internet phone calls by jc42 · · Score: 1

      That still leaves open the possibility of pure voip to voip calls being undetectable (e.g. between different Vonage customers), but in the near term those sorts of calls are likely to still be in the minority.

      I'd wonder about that. A news story that has been covered here is that, over the past couple years, the wireless phone system in Japan has gone almost entirely VoIP. It's cheaper, works better, and you can call anywhere in the world for the same price as a local call. If you have a fancy combined phone/PDA, HTTP works the way it's supposed to, unlike here in the US where my Kyocera "smartphone" takes 20 to 30 seconds to make a PPP link over a phone line before it can make a single TCP connection.

      My wife and I have family in at least 10 states. This sounds enticing ...

      --
      Those who do study history are doomed to stand helplessly by while everyone else repeats it.
    7. Re:Detecting internet phone calls by anthony_dipierro · · Score: 1

      Would the "do not call" list still apply?

      If you don't have a phone number, you can't put yourself on the "do not call" list in the first place.

    8. Re:Detecting internet phone calls by Anonymous Coward · · Score: 0

      Except there is a source IP that can be traced and thousands of script kiddies ready to DoS the IP. Not a good idea to spam via VoIP. Besides, I can always firewall.

    9. Re:Detecting internet phone calls by azuretek · · Score: 1

      On the flip side, has anyone considered what VoIP telemarketing spam would be like? Would the "do not call" list still apply? It would be very interesting to see a spammer initiate several thousand calls and only handle the ones that answer... No longer limited by the number of outgoing trunks...

      I use a VoIP for my phone instead of traditional phone line from a telco. I dont get telemarketing calls since my number isn't registered and cant be put in the phone book. My local phone company publishes the phone book (Qwest) and I dont think it would be possible to list my number.

      If it did come down to it I think there should be a law setup like cell phones, it costs me money to accept calls (if I use enough bandwidth) so I shouldn't have to pay extra to get harrassed. I think that should be a standard so telemarketing calls wont affect me.

    10. Re:Detecting internet phone calls by h4rm0ny · · Score: 1


      If there was a mod for uninformative then I'd be about to get it, because I have no idea what's going to happen over the next 10 years in this regard. What is clear from VoIP is that the government has just lost it's ability to trace / bug calls easily. VoIP is not complicated or a secret protocol, and if it were it could be duplicated easily. Any attempt to control it via limiting software will fail unless they make Windoows mandatory (wouldn't be surprised ;). That leaves monitoring internet traffic in detail.

      Of course the government could try that (going to be even more of a technical nightmare with wireless P2P), but they can't even justify it with the old "Government is your friend and only bad guys would oppose it" shtick because they will not be the only ones with access to this technology. Look at this. A stalkers best friend.

      Nope, no idea what's going to happen in the next ten years but it seems like the Privacy Warriors have just got some new weapons. This is an interesting time to live. What happens in the next decade will shape things to come long after.

      --

      Aide-toi, le Ciel t'aidera - Jeanne D'Arc.
    11. Re:Detecting internet phone calls by Idarubicin · · Score: 1
      Taxes are much less onerous when they are attached to an existing monentary transaction. Sales tax, hotel tax, income tax... the hurt that those things do to the payer is mainly from the actual money taken away. But taxes on something free impose many more costs- you've now got to go through all the paperwork of making a transaction that hadn't been necessary at all. (Like how the biggest irritation of tollbooths is not the money itself, but the traffic congestion from having to sit in line digging for coins)

      Don't you already get a monthly bill from your ISP, and from your phone company? Couldn't such a tax be administered through either of those utilities?

      I'm not saying it's a good idea, but fees on VoIP don't necessarily have to result in one more bill in your mailbox, or an additional transaction for the consumer.

      --
      ~Idarubicin
    12. Re:Detecting internet phone calls by Jason+Pollock · · Score: 1

      If you don't have some sort of address, no one will be able to call you.

      As soon as you have a published address (phone numbers still work for this), you can be put on a list.

      Jason Pollock

    13. Re:Detecting internet phone calls by Jason+Pollock · · Score: 1

      I agree that snooping on communications internal to a group will be harder (almost impossible?). As long as they are limited to that single group. :) Once people have to talk to someone else (outside of the private group), they will have to have some sort of interconnection agreement. Much like the fixed/mobile carriers that exist today.

      With interconnection agreements comes regulation, and the government telling carriers what they need to keep voters happy. :) If people don't care about calling for a pizza or doing anything other than talking to your buddies on an encrypted link, they're fine - it's just a socket! But once they want to talk to anyone they don't have a pre-existing private agreement with, I believe the conversation will end up in the open.

      Conversations can only stay encrypted if the networks in the middle allow the connection. One of the interconnection rules could very well be "no encrypted traffic". A client could lie about the codec, but then we're back to "private group" again. :)

      Regards,
      Jason Pollock

    14. Re:Detecting internet phone calls by Jason+Pollock · · Score: 1

      If you want to receive VoIP calls, you can't block the port. If you don't care about receiving the calls, then by all means block the ports! This is a discussion about using VoIP for your phone service. Blocking the ports in such a situation defeats the purpose. :)

      As for the IP tracking, I see VoIP networks moving towards proxies (post regulation). That means that the spammers will all be going through carrier proxies in order to get correct address and intercept information, so the IP will be that of the carrier's edge gateway, not the spammer. :) You might have a valid return number, but that's about it. In SIP, there might be something in the hop list, but don't count on it. H.323 doesn't have a hop list (that I can remember).

      Finally, I've only heard of VoIP carriers charging by the minute, not by the attempt, so they can initiate as many connections as they wish without a fee!

      Regards,
      Jason Pollock

    15. Re:Detecting internet phone calls by anthony_dipierro · · Score: 1

      As soon as you have a published address (phone numbers still work for this), you can be put on a list.

      Sure, but not the current "do-not-call" list. I thought the question was whether or not the current rules would apply. Obviously new ones could be passed (though they might need additional congressional approval).

    16. Re:Detecting internet phone calls by Jason+Pollock · · Score: 1

      I guess it would all come down to whether or not you would have an email address as connection identifier or if we would stick with phone numbers. My bet is that phone numbers will be here for a long time. :)

      Jason

    17. Re:Detecting internet phone calls by anthony_dipierro · · Score: 1

      The only way the phone companies are going to let you use phone numbers is if you end your call in the POTS. And I wouldn't call that VoIP. I fully agree that phone numbers will be here for a long time, but so will the Plain Old Telephone System. The phone company already has telephone lines run to basically every house in the country. Sure, the companies will digitize the data at some point, and packet switch it, but there's no reason to digitize it before it comes out of a single family dwelling. Maybe for really large apartments or businesses, then you can use digital phones and a PBX, but that's still not VoIP. As long as the telephone companies are involved, there's no reason to use IP at all. And for those who manage to avoid the telephone companies, you can bet they're not going to be allowed to use telephone numbers.

  7. Google News Partner Link by NOT-2-QUICK · · Score: 4, Informative
    --
    Beer is proof that God loves us and wants us to be happy. -- Benjamin Franklin
    1. Re:Google News Partner Link by FrozenDownload · · Score: 0

      lol! I just visited the site and I didn't need to register. Is it just me, or is this guy tryin to karma whore?

  8. Enforcement? by Dyolf+Knip · · Score: 4, Interesting

    And just how would they enforce any such regulation? VoIP is basically just a program running over existing networks. Cell phones not withstanding, you can no more require charges to be paid than you could charge for email or instant messaging. It's just a communications protocol!

    --
    Dyolf Knip
    1. Re:Enforcement? by cervo · · Score: 1

      You could regulate VOIP software vendors and force them to put some type of reporting package to some government agency into it. If the only game in town does this you are dead.....I'm not sure if they have the power to enforce this though..

    2. Re:Enforcement? by Anonymous Coward · · Score: 0

      Then the issue is regulating software. Ha Ha.

    3. Re:Enforcement? by r00zky · · Score: 1

      Yessir, the solution is introducing malware in VOIP software, because nobody in another country can develop an OSS alternative to it, and the users will happily pay additional cost in their calls because of taxes using your version.

      --
      I'm a chainsmokin' alcoholic sociopath, so-ci-o-path
    4. Re:Enforcement? by anthony_dipierro · · Score: 1

      And just how would they enforce any such regulation?

      Threat of jail-time would probably catch people's attention.

    5. Re:Enforcement? by Dyolf+Knip · · Score: 1
      "Hold a private conversation with a family member in a fashion not approved of by the US Government and we'll throw you in jail"? That'll go over real well with the likes of Ashcroft, but not too many others, and certainly not the Supreme Court.

      And anyway, you still didn't answer the question. Skype comes to mind; it's a VoIP program that relies an a P2P phone book and encrypts the contents. I imagine it would not take too much effort to remove app-specific characteristics from the plaintext part of the stream. And just like that the politicos will have created yet another crime that is horrendously difficult to detect, much less punish. How do you enforce a law whose violation is invisible to everyone but the perpetrators? Historically, every attempt to do so has been a dismal, often disastrous, failure.

      --
      Dyolf Knip
    6. Re:Enforcement? by anthony_dipierro · · Score: 1

      "Hold a private conversation with a family member in a fashion not approved of by the US Government and we'll throw you in jail"? That'll go over real well with the likes of Ashcroft, but not too many others, and certainly not the Supreme Court.

      As long as the legislation was limited to interstate commerce, the Supreme Court wouldn't have any problem with it.

      And anyway, you still didn't answer the question.

      Yes I did.

      Skype comes to mind; it's a VoIP program that relies an a P2P phone book and encrypts the contents. I imagine it would not take too much effort to remove app-specific characteristics from the plaintext part of the stream.

      I don't see that ever catching on, but if it did, then the government would obviously need to change its tactics.

      How do you enforce a law whose violation is invisible to everyone but the perpetrators?

      You've shown a way that it's possible for people to break the law while being invisible to everyone but the perpetrators. But basically every law can potentially be subverted. The question is whether or not it would be subverted on a regular basis.

      Historically, every attempt to do so has been a dismal, often disastrous, failure.

      Almost all taxes can be subverted in this way. The income tax, for example, is a tax on a behavior whose violation is invisible to everyone but the perpetrators. Same thing with the sales tax. Sure, individuals who sell directly on eBay generally avoid the tax, but to call sales tax a dismal failure is an overstatement.

      Now don't get me wrong, I don't think the government should have a sales tax or even an income tax, but to say it's unenforcible is simply incorrect. Yes, it won't be enforced 100%, but taxes don't need to be enforced 100% to generate revenue for the government.

  9. Completely Switching to VoIP by Davak · · Score: 4, Interesting


    Thanks to some great suggestions by people previously on slashdot I have completely switched to VoIP for my phone service. It rocks.

    Previously I had not switched because I was scared of losing 911 service. However, if you have wire running into your house, you can still pick up and dial 911--even without service!

    So we have our emergency land-line phone--for free. Now we are using VoIP for everything else.

    However, if VoIP starts getting taxes to death, then people like me will switch to something else... and then something else...

    Can't the government just stay off these new industries long enough for them to get started?

    1. Re:Completely Switching to VoIP by Anonymous Coward · · Score: 1, Insightful
      Thanks to some great suggestions by people previously on slashdot I have completely switched to VoIP for my phone service. It rocks. Previously I had not switched because I was scared of losing 911 service. However, if you have wire running into your house, you can still pick up and dial 911--even without service! So we have our emergency land-line phone--for free. Now we are using VoIP for everything else. However, if VoIP starts getting taxes to death, then people like me will switch to something else... and then something else... Can't the government just stay off these new industries long enough for them to get started?
      The problem is that what you are doing isn't VoIP, it's telephony. VoIP means that you and I both are running software on our computers that streams audio between the hosts. What you are doing (at least, what your post indicates you are doing) is using the Internet to stream a voice to the telephone of someone else, which means that, at some point, it is moving out of the Internet and into the telephone network, which is regulated.

      Anyway, it seems to me that this industry is has now gotten started, so it becomes time for the government to step in and ensure that the people using it start paying for their fair share of the associated costs. Or do you think that 911 is really free?
    2. Re:Completely Switching to VoIP by charnov · · Score: 1

      Agreed...I helped a company go to VoIP to save about $6,000 in office to office long distance (the other option was to switch to cell phones on each desk which also would have saved a ton. We decided on VoIP AND Blackberry service).

      They are currently looking 10 years down the line and the possibility of moving all of our data needs to wireless mesh networks (if they are prevalent by that time) or buying our own satelite ($5 million est. by then) since the company will be multinational at that point.

      --
      [RIAA] says its concern is artists. That's true, in just the sense that a cattle rancher is concerned about its cattle.
    3. Re:Completely Switching to VoIP by Anonymous Coward · · Score: 0
      What you are doing (at least, what your post indicates you are doing) is using the Internet to stream a voice to the telephone of someone else, which means that, at some point, it is moving out of the Internet and into the telephone network, which is regulated.

      Here's what I don't get. If that's VoIP, what do I need Qwest for in the first place? If they're not providing a gateway between the PSTN and the Internet then they're essentially useless. What do I get for my Qwest subscription... addition to their directory server? Once IPv6 is in every home and we have hundreds of IPs per person this won't be an issue. Just give someone your phone's IPv6 address to call you. Hahaha right. That's going to happen. Not in my lifetime.

    4. Re:Completely Switching to VoIP by oh · · Score: 1
      However, if you have wire running into your house, you can still pick up and dial 911--even without service!

      So we have our emergency land-line phone--for free. Now we are using VoIP for everything else.

      So the local telco has to provide a 911 service for you, but cannot collect any revenue from you to pay for it.


      Sure, they are not notice one person doing this, but what happens when half the population switched to VOIP? Telco goes bust, and no-one gets a 911 service, government has to step in and either provide it by raising taxes, or force VOIP providers (or ISPs) to either provide it or pay for it.

      Can't the government just stay off these new industries long enough for them to get started?
      Why let them get started if you are going to force them to go under anyway? Besides, the FCC could decide to regulate it but set a timetable for phasing in any fees and regulations.

      This would be better for the VOIP providers as they will be able to plan for the future, rather then waiting for the crunch and having it imposed with no warning. They know that in X years they will have to start paying Y per call, or that if they have over Z subscribers they will have to provide their own 911 service. Put that into their buisness plan and develop a sustainable buisness model, rather then hoping no one notices what they are doing.

      --
      Democracy isn't about no one telling you what to do. It's about everyone telling you what to do.
    5. Re:Completely Switching to VoIP by ph4s3 · · Score: 1

      However, if you have wire running into your house, you can still pick up and dial 911--even without service!

      So we have our emergency land-line phone--for free.


      You're full of crap. If you don't have a traditional phone line that you PAY for then you cannot expect to receive any level of service, including 911.

      The telco's, cable co's, power co's, and pretty much all other utilities lag behind in completing disconnect orders because they provide no revenue and can be backlogged while completing NEW revenue items on time or early. Any service you are or were receiving is not guaranteed and should not be expected. When (not if) there is a line fault on your line, the automated testing will ignore it and you won't be able to open a trouble ticket because you don't have a billing (account) number.

      If you want to move to an entire VOIP solution, all phone companies are required to provide a minimum level of service, called Lifeline in our area, that will allow you to connect to operators, 911 operators, etc for a much smaller monthly fee (~$12 here).

    6. Re:Completely Switching to VoIP by jc42 · · Score: 1

      Can't the government just stay off these new industries long enough for them to get started?

      Ummm ... the US government supported the Internet (mostly as Arpanet) for two decades before the commercial world finally noticed it. All that time, the code and other technology was all available openly. The commercial guys could have grabbed it and set up a separate commercial network at any time, the same way the DoD set up a separate military network. This never happened. The way that the Internet went commercial was when the government-built academic Internet was opened up to commercial traffic.

      There are a number of examples like this, where it took a long period of government subsidy to get an industry off the ground. Look at the history of the airline industry, for example. This is mostly because the commercial rarely starts anything new. Few companies are willing to invest in something until someone has shown that it has value. And the Internet didn't have commercial value until there were millions of users.

      So if the government had stayed out, it would never have happened at all. And for most of the world, it still hasn't happened. The commercial Internet only exists in places where it's profitable to install it. This excludes most rural areas and the poor parts of many cities. Exceptions to this are mostly from government interference.

      --
      Those who do study history are doomed to stand helplessly by while everyone else repeats it.
    7. Re:Completely Switching to VoIP by Anonymous Coward · · Score: 0

      If you don't have a traditional phone line that you PAY for then you cannot expect to receive any level of service, including 911.

      That's interesting. If you call 911 on a deactivated cell phone it will go through.

      Im my area (Toronto), deactivated landlines now allow you to call the phone company and order service.

    8. Re:Completely Switching to VoIP by Vegeta99 · · Score: 1

      $12 much smaller?
      Jesus, here we pay something like $18 for basic service.

    9. Re:Completely Switching to VoIP by Technician · · Score: 1

      If the government would pull many of the burdens they placed on the telco's, then the telco's could provide resonable priced basic service.

      If I pulled off all the govenment add-on fees off my bill, and the hidden ones that show up as part of the monthly basic fee (passed on costs), my bill could be about 1/3 the current price.

      The telco's are trying to shed these fees as other services can now easly compete with the burdened landline providers. The high cost of a landline is one of the reasons many people ditch their landlines and go wireless or VOIP on cable. If they could provide reasonable priced landlines, then people could continue to keep them for fax, dial-up backup, etc. There just isn't enough incentive at high prices for many people to keep dial-up.

      --
      The truth shall set you free!
    10. Re:Completely Switching to VoIP by Anonymous Coward · · Score: 0

      However, if you have wire running into your house, you can still pick up and dial 911--even without service!

      Sure, you can dial it, but unless you have service, it's not going to work. In some places you're allowed to get service for free, in others you have to show indigence, though.

    11. Re:Completely Switching to VoIP by anthony_dipierro · · Score: 1

      So if the government had stayed out, it would never have happened at all.

      Nah, if the goverment had stayed out, it would be called AOL.

    12. Re:Completely Switching to VoIP by Abcd1234 · · Score: 1

      If I pulled off all the govenment add-on fees off my bill, and the hidden ones that show up as part of the monthly basic fee (passed on costs), my bill could be about 1/3 the current price.

      Prove it. Seriously, for all these conspiracy theories I keep reading, for once, I want you to prove it. Yes, government taxes on phone service incur some overhead on bills, and, no, it's probably not inconsiderable. But to imply that the government is responsible for *2/3rds* of your phone bill requires just a *little* proof, don't ya thing?

    13. Re:Completely Switching to VoIP by Technician · · Score: 1

      What part of bypass regulation did you not understand?

      Think about it. The parks are regulated. To use them, it costs $. Downtown parking is regulated. It costs $. Vehicle licensing is regulated. It costs $. Booze and Smokes are regulated. It adds much $. Gasoline is regulated. It is taxed so much per gallon, they don't bother to post it on the pump anymore.

      I just jumped to the obvious conclusion. That is obvious, not a conspiracy theory.
      Why else would they be trying to bypass a regulation if it isn't adverserly hitting the bottom line?

      --
      The truth shall set you free!
    14. Re:Completely Switching to VoIP by ph4s3 · · Score: 1

      I should have been more clear and said:
      If you have a land-line coming into your house (or where ever) that you are not paying for, then any service including 911 on that line is not guaranteed and should not be expected.

      What it all boils down to is how each device makes the network connection.

      Cell phones are a radio and establish a new connection each time a call is made. A "disconnected" cell phone is still a radio and still has the ability to talk to any transceiver that can hear it, regardless of the service paid for on the phone. Since the tranceivers can hear anything in their available frequency spectrum regardless of service level they are required to pass on emergency traffic (911 calls) in most, if not all, areas of the US. I'm not sure if this is a local utility board issue or an FCC mandate.

      This contrasts how local land-lines connect to the network because the land-lines literally require a physical connection all the way back to the CO. When your line is disconnected they mark it as spare and can re-provision any or all of it to any other customer on the network. While it is possible that a low level of service (911, operator, business office) is available on a disconnected # over a working cable pair, your physical connection back to the CO that provides that low service level is in jeopardy and can be cut or reassigned at any time to repair a working (paying) customer and you won't be able to get it repaired without re-initiating service with the telco.

    15. Re:Completely Switching to VoIP by Abcd1234 · · Score: 1

      I don't care if the phone companies are trying to get around regulation. And I don't care that a variety of other products have large amounts of tax on them. You still haven't backed up your very specific assertion that government regulation is responsible for 2/3rds of your phone bill. PROVE IT! Don't just go throwing numbers around... that's how bullshit like "1 joint == 6 cigarettes" (or was it 12?) or "you need 8 glasses of water a day" got started; by people making up numbers and stating them as fact. It's bad when the media does it, it's bad when the so called "experts" to do it, and it's just as bad when you do it.

      So, if you have evidence, great, I'd love to see it. Seriously. This isn't meant to be an attack on you or your beliefs regarding government regulation. But provide *evidence*. Either that, or quit throwing around made-up numbers and stating them as fact in order to back up your own personal beliefs.

    16. Re:Completely Switching to VoIP by mixy1plik · · Score: 1

      What VOIP service do you use? Impressions? I'm considering a switch when I move in a few months...

  10. Internet as a Utility? by dmurawsky · · Score: 4, Insightful

    Well, as telephones started becoming more and more a part of daily life, the systems that they ran on became taxed by the government. I see no reason why the government won't do the same with the Internet. Let's just hope that they do it intelligently (wishful thinking, I know).

    --
    Learn from other people's mistakes, you don't have time to make them all on your own.
    1. Re:Internet as a Utility? by bigberk · · Score: 1

      What would be interesting is if individuals and organizations, increasingly frustrated by the commercialization of the Internet decided to set up their own network of networks, running over perhaps point to point wired, optic links, wireless, or something else VPN-like. They used to do something like this in the old days, what was it called, UUCP?

  11. How? by pdaoust007 · · Score: 5, Informative

    This is all nice and all but how the hell are they going to regulate this exactly? Sure it might be easy to target companies like Vonage but what do you do with all the free services out there like Skype or Free World Dialup?

    1. Re:How? by Anonymous Coward · · Score: 0

      Don't ask how, ask when.

    2. Re:How? by ZenJabba1 · · Score: 1

      No, ask HOW...

      Because if the US regulates VoIP, it will just move offshore the next day. If none of the main services are offered via inside the US borders, what right does the US authorities have to tax it.

      This little devil is already out of the bottle, and no matter how much huffing and bluffing they do, it aint going back into that bottle. Just like P2P applications are being brought under control, VoIP if they try to regulate it like the POTS service will just change into something that is just slightly outside the reach of authorities.

      --
      `find / -name "*your_base*" -exec chown us:us {} \;`
  12. so what? by __aaitqo8496 · · Score: 2, Insightful

    "Federal and state governments could lose billions of dollars in revenue..." ...of which could made up if we spent an ounce less on military funding.

    1. Re:so what? by Anonymous Coward · · Score: 0

      "Federal and state governments could lose billions of dollars in revenue..." ...of which could made up if we spent an ounce less on whiny liberal feel-good measures and socialist programs.

      I know, even better, cut down on military spending, let the terrorists take over the country, then there will be no tax what-so-ever because we'll all be working for the totalitarian goverment who would feel silly taxing themselves.

    2. Re:so what? by NonSequor · · Score: 2, Insightful

      There's always the option of cutting BOTH military and social programs. Have you ever considered that?

      --
      My only political goal is to see to it that no political party achieves its goals.
    3. Re:so what? by squiggleslash · · Score: 1

      What about we INCREASE spending on both military and social programs and just enlarge the national debt? That way, everyone's happy, and we can declare bankruptsy or get our grandkids (hey, they'll be rich, right?) to deal with the issue in 50 years time - by which time I hope to be long gone.

      --
      You are not alone. This is not normal. None of this is normal.
    4. Re:so what? by Jack+Schitt · · Score: 1

      What about we INCREASE spending on both military and social programs and just enlarge the national debt? That way, everyone's happy, and we can declare bankruptsy or get our grandkids (hey, they'll be rich, right?) to deal with the issue in 50 years time - by which time I hope to be long gone.

      Thank you, Mr. Bush...

      --
      This message brought to you by Jack Schitt's Previously Shat Shit
  13. Easy by DAldredge · · Score: 1

    Tax it when it taps into the PSTN.

  14. What? by Max+Threshold · · Score: 0, Flamebait

    We can't decrease the amount of money the government extorts from us for a change?

    1. Re:What? by Anonymous Coward · · Score: 0

      We can't decrease the amount of money the government extorts from us for a change?

      Whenever the government stops spending more money, maybe that will happen. With the current increase in government spending, it's like our retarded president Bush never had a credit card that he had to pay the bill for.

      Rule #1: PAY OFF YOUR DEBTS FIRST.
      Rule #2: DON'T SPEND MORE THAN YOU MAKE.

      I'm amazed that it's even possible to elect leaders who are not financially responsible.

      He'll be well out of power when the deficit he's racked up really impacts the citizens of this country - and it will be entirely his fault for financially sabotaging our country.

    2. Re:What? by jc42 · · Score: 0, Troll

      Of course you can decrease the amount the government extorts from you. Just give them proof that you're a multi-millionaire, and they'll decrease your taxes right away.

      --
      Those who do study history are doomed to stand helplessly by while everyone else repeats it.
  15. Universal Service Fund by Anonymous Coward · · Score: 0

    "And if the FCC chooses not to regulate Internet calls, it could raise questions about the future of the Universal Service Fund, a $6 billion federal program funded by telephone fees that subsidizes phone service in rural areas and Internet service for schools."

    What? I was under the impression the money went towards beer, pot, and hookers.

    Sorry. Get money for the beer elsewhere, or somehow else. Maybe tax overall internet access. Gosh I hate that idea too but it's better than the idea of specific services being monitored and/or taxed. Otherwise it'll lead to a mess .. govt. will declare all kinds of things illegal so they can get their tax $$ of internet phone calls. (Banning encryption, banning cryptic realtime communications protocols, banning instant messenger etc. etc.)

  16. OK then by Hal+The+Computer · · Score: 1

    We'll tap into the PSTN up in that big white northern coutry known as Canada. Black market canadian VOIP, wahoo!

    --

    int main(void){int x=01232;while(malloc(x));return x;}
    1. Re:OK then by Wesley+Felter · · Score: 1

      Great, so whenever someone in the US wants to call your VoIP line they have to make an international call into Canada?

  17. A question.. by KD7JZ · · Score: 5, Interesting

    Do you consider universal affordable phone service to be a social good worth paying for?

    That goal of universal phone service is possible only because of the current system of regulation. Regulation is an unfortunate term. It is really a system whereby telephone subscribers in populus areas subsidize subcribers in more rural areas. Regulation allows phone providers a consistent rate of return on their capital investment while keeping rates down for everyone.

    1. Re:A question.. by shostiru · · Score: 2, Insightful
      I consider emergency service a social good worth paying for, and I will gladly do so via actual taxes. I even consider basic phone service a social good, just as I consider basic water service, fuel, and electricity a social good, but I see no particular reason why the government should enforce subsidization of one and not the others via subscribers' bills. If a community, state, or the country wishes to subsidize any or all of them so be it, I'll vote for that (tho I have no expectation others will do the same).

      The current model, however, has the phone companies collect this tax from other subscribers, and most unlike income or property taxes it is arguably regressive. More importantly, the phone company has a large measure of control over the rate of basic service. This is usually done without effective governmental oversight as tarriffed services are negotiated between the telcos and the public utilities commissions. The decision makers in these same commissions are frequently staffed by current and former telco executives and management. I have exactly zero faith that the "tax" I pay on my phone bill to subsidize basic phone service accurately reflects what it costs to provide this service.

    2. Re:A question.. by iabervon · · Score: 1

      First off, what they're talking about is whether to regulate companies which provide access to the telephone network via IP as telephone companies. Chances are that they will, since it's no less a use of the phone network if the call starts halfway there.

      On the other hand, people in populous areas (with good network connectivity) may start making more pure VoIP calls and not using the phone network as much. This would lead to the phone network getting out of balance. On the other hand, at that point the government could step in and regulate the data lines, at which point the people in rural areas would get cheap internet, and everybody would just move to IP, which is probably a better design these days anyway.

    3. Re:A question.. by Anonymous Coward · · Score: 0

      "...while keeping rates down for everyone" doesn't apply to urban users, who pay more for their phone service as a result of the Universal Service fees.

      It seems what you're looking for is an equivalent subsidy for internet service, so that rural households have an acceptable minimum level of internet service. It would seem a stretch to provide that subsidy to VoIP, which is a data service running over said internet connection.

      Nevermind that rural customers should pay more for telephone/internet access anyway. Rural areas in the US typically have lower sales and property taxes than cities, so why shouldn't they shoulder the burden of supplying internet service? They already pay the "rural premium" for sewage, water, electricity, natural gas, and heating oil.

    4. Re:A question.. by Anonymous Coward · · Score: 0

      Do you consider universal affordable phone service to be a social good worth paying for?
      Short Answer: NO!

    5. Re:A question.. by cpeterso · · Score: 1


      Regulation allows phone providers a consistent rate of return on their capital investment while keeping rates down for everyone.

      "Consistent rate of return" just means the provider is not allowed to charge more when the cost of providing the service costs more. If providing telephone or internet service in the rural boonies costs more than in the city, why SHOULDN'T the people living in the boonies pay more for their service? The more they have to pay, the more likely that competitive services (like wireless, satellite, or cable) will start drooling and want to provide their services.

    6. Re:A question.. by squiggleslash · · Score: 1
      I do, but even if it wasn't a social good, it would be a practical good.

      The thing is, the telephone system works because you can rely upon virtually everyone being reachable via it. When we start cutting people off because it'd cost a couple of thousand dollars or more to install a line, then we reduce the net value of the phone system. The more people we cut off, the less useful it becomes.

      My amazement is that other countries, such as the place of my birth (Britain), do not have the same farsighted view of the phone service that America does. In Britain, the very idea of local calls being unmetered - with the exception of the service in Hull - is considered a blasphemy against free market economics which dictates every service sold by BT must be profitable and must be based on something crude like Erlang's theories to translate minutes used to capacity and then back to per-second pricing: at least, that's how OFTEL, the UK's FCC's telecommunication branch equivalent, behaves. For OFTEL, a phone is worth having even if you can't afford to use it.

      I think by-and-large America has it right. Everyone pays a little bit more than the minimum and in return is guaranteed an affordable, usable, as useful as it can be, telephone service.

      --
      You are not alone. This is not normal. None of this is normal.
    7. Re:A question.. by anthony_dipierro · · Score: 1

      Do you consider universal affordable phone service to be a social good worth paying for?

      Not really. If you want to live out in the sticks, you can pay for it.

    8. Re:A question.. by bthomasmo · · Score: 1

      And today, the highest prices for basic phone service are being paid by those least able to afford them - inner-city residents. Don't believe me? Check the rate structure of your local telco. The closer you are to the center of a metro area, the higher the price. No, regulation is NOT the only way to get universal service. Before wireless and satellite services, it may have been, but today it unequivocally is not.

  18. How can they do that? by LordK3nn3th · · Score: 2, Insightful

    What stops them from "regulating" online conferencing, telephony (such as Skype), etc? That seems practically impossible unless the government starts monitoring the internet. Is it only going to involve telephones? What, really, seperates a telephone system (a traditional one) and a computer w/ a microphone?

    Oh, but of course, the government doesn't understand it's own creation-- the internet. I think we've all seen that enough already...

    --

    ---
    Never criticize religion on Slashdot. You will be modded down for "Troll" no matter how factual it is.
  19. VoIP by segment · · Score: 0, Offtopic

    echo "Got Worms?"|voip 866-PC-SAFETY

  20. This ain't +1, Informative by Anonymous Coward · · Score: 0

    It's -1, Karma Whore. That site doesn't require registration. Amazing what people will mod up these days.

  21. Are they allowed to read my mail? by t0qer · · Score: 4, Insightful

    I don't know the specifics of the law, but from what I know about the FCC it was founded to regulate wide area transmissions right? Anything to do with radio that passes over public land.

    Most of the internet now is not publically owned. AOL/Time Warner has some of the nicest backbones in existance (I don't think I need to remind avid /. readers of how many times we gave those servers beatings for matrix and LOTR trailers) Either they use magic, or their network has more bandwidth than a bittorrent.

    Which causes me to say, what gives the goverment the right to go after a company like AOL if they started providing phone services to it's subscription base. As long as AOL allowed other IP telephony providers to route calls into their networks, which was the community based resource sharing it's creators invisioned, then in essence it is a wide area transmission. If a node goes out, it reroutes.

    It's a paradox. We can't have our cake and eat it too and unfortunately for most of John Q Public in the US, the goverment wants to be able to have evidence collecting power. We want privacy and we want a goverment that can defend us from scumbag corporations at the same time.

    I think the FCC is a lone tomato rotting in the sun, skin blistering with flys buzzing about it, who's smell of decomposition just barely singes your nose. Regulation did not bring the consumer choice, which is why when deregulation came about the choice in phone service providers skyrocketed.

    It's proof that less goverment involvement in phone providers results in better consumer choice. I for one am totally for letting any company do this.

    This news is sort of old hat though, since many companies i've worked for over the years had IP based telephony for connecting calls between offices. I know a lot of the insanely big (like AOL/Time warner) have to use IP traffic for their voice data. Cisco does for sure.

  22. Live Streams... by deathinc · · Score: 3, Informative

    There apparently will be several live feeds available of the hearing tomorrow for those away from their TVs.

  23. Sadly, by Hal+The+Computer · · Score: 4, Insightful

    Nothing is black or white. If there is something they can tax, they will.., as long as they don't get their heads handed to them. Many U.S. states have no sales tax whatsoever. That dosen't fit your nice little theory. Certainly not all consumer goods are taxed. Every road you drive on isn't a toll road.
    If you haven't fallen asleep yet, you might want to read an article on taxation. Accuracy not guarenteed, but hey, it's free and it's mostly accurate.

    --

    int main(void){int x=01232;while(malloc(x));return x;}
    1. Re:Sadly, by orthancstone · · Score: 5, Informative

      Only 5 states are without a sales tax rate. Yeah, that may be 10 percent but that still isn't many.

  24. What do current taxes do? by stienman · · Score: 4, Insightful

    IIRC, phone taxes historically were created two support the poor (as phones were eventually determined to be a basic service that should be available to all) and later to support the 911 emergency location service.

    I would be willing to support the frugal application of these two taxes to internet phone usage, except a little more broadly: 911 service given to anyone with an internet connection, and additional phone taxes to cover the cost of providing basic internet connections to the poor.

    There may be additional taxes required to regulate the industry (support the FCC a tiny bit, etc) so companies don't completely fleece consumers.

    But in the end, the reality is that phone service is so cheap, and internet service so cheap, that to complain about an additional $1/month or less in taxes is being petty.

    What? It's $7.00 per month? Well then, fight to the death for your $82/year!

    Of course the real issue is that the internet allows anyone to become a phone company overnight, even offshore, so collecting such taxes is going to be practically impossible. Best to go to the local ISPs, turn them into basic phone service providers put a small tax on the internet (flat rate per line/connection regardless of usage or bandwidth) and get rid of the concept of a 'phone company' or 'cable company'. You have connection providers and content providers. Levy the 911 and subsistance tax on the connection. Cellular providers will simply become ISPs, each cell phone a computer, the 'line' between counting as one internet connection. Each person will typically have 2-5 lines (cell, office, home, etc) Since content providers must have a connection, then they too will be taxed. Anyone can become a content provider.

    3) Profit!

    -Adam

    1. Re:What do current taxes do? by EvilSporkMan · · Score: 1

      to complain about an additional $1/month or less in taxes is being petty.
      Studied American History lately? We WERE a bunch of petty bastards who bitched about taxes all the time right before our separation from Great Britain.

      --
      -insert a witty something-
    2. Re:What do current taxes do? by TheDormouse · · Score: 1

      Actually, it wan't that petty. Taxation without representation is worthwhile to bitch about.

    3. Re:What do current taxes do? by Vegeta99 · · Score: 1

      I'm 17.
      I currently pay municipal tax, county tax, state tax, federal tax, social security, medicare, and workman's compensation.

      I do not recieve much of it back come return time.

      I also cannot vote. But you don't see all the 14-17 year olds who can't vote making a revolution.

    4. Re:What do current taxes do? by chrispatch · · Score: 1

      I have a couple of problems with the FCC and their "service fees".

      1. These fees are self serving. The Federal agency that BENEFITS from the "fee", decides if the "fee" is necessary, then decides the amount and finally decides the services to which it applies. What happened to seperation of powers?

      2. These are clearly taxes, but the FCC prevents the local telcos from listing it as a tax. The Telco which lists this has to list it as a fee! This may seem like a slight differnce, but Joe Average consumer has dificulty determining which are fees from the Telco, and which are government mandated fees (taxes).

      3. This shifts the burden for collecting taxes from the federal government to the local telcos.

      4. Taxes should be called taxes, not fees. They should be voted for by publicly elected officials or directly by the electorate, not by lackey appointies who are not really answerable to the voting public.

      These are just my opinions, as always your milage may vary.

    5. Re:What do current taxes do? by TheDormouse · · Score: 1
      I never said the 14-17 year-olds shouldn't revolt! You'd have a pretty good argument that anyone who is paying taxes should get to vote, regardless of age. It's a hard group, however, to get taken seriously.

      The residents of the District of Columbia make a constant murmur about taxation without representation.

  25. What I want to know by mcc · · Score: 4, Interesting

    How will they track this, and how will they be able to determine if people are cheating?

    OK, so they decide to regulate and tax Voice routed over IP. What about Voice routed over IP routed over some other sort of IP protocol disguised to not look like voice? What about Voice over IP routed through relays in Canada? What if two people are doing VoIP but then claiming "what, this isn't a phone conversation, we're just streaming each others talk radio streaming mp3 stations to each other."

    This could become fascinating. We would wind up with this sort of caste structure being created among internet protocols, where this stream of bytes is okay and anonymous but THIS stream of bytes, the government needs to know about it and it needs to be taxed.. just because the latter set of bytes happens to contain audio data of a certain sort. So far the internet has avoided anything of that sort; certain classes of *content* have been differentiated from one another in a regulatory fashion, but never before a class of *data*.

    Soon we may wind up with something where the proverbial "Joe Sixpack" pays relatively high fees on his Skype phone he bought at Wal-mart and plugged into the wall, while all the "techies" pay nothing to use their "alternative" VoIP setups. Meanwhile a bizarre cat and mouse game goes on, as the authorities complain about "speech piracy" and attempt to find ways to sniff out VoIP data or prevent "pirate" VoIP programs from connecting to the larger VoIP network, and the tech community comes up with increasingly elaborate ways to keep the authorities to notice what sort of data exactly it is that they're sending.

    In the meanwhile, the ongoing effort by router companies to make "smart" routers capable of identifying things like streaming media packets and handling them in a slightly more intelligent manner is scuttled-- because 80% of all streaming audio data no longer looks like streaming audio data.

    Anyone have a link to the RAT_PENIS.TXT story?

    1. Re:What I want to know by 0x0d0a · · Score: 1

      Soon we may wind up with something where the proverbial "Joe Sixpack" pays relatively high fees on his Skype phone he bought at Wal-mart and plugged into the wall, while all the "techies" pay nothing to use their "alternative" VoIP setups.

      Remember "audio" CD-Rs? It can happen, little sense as it makes...

  26. I'd like to see how they regulate by bigberk · · Score: 1

    I will be very curious to see how they regulate a voice communication that I encrypt and send to my friend in Australia. While they might be able to regulate the companies and devices produced commercially, data protected by a layer of encryption is untouchable.

    1. Re:I'd like to see how they regulate by Anonymous Coward · · Score: 0

      Well, since the international calls can go via landlines it is interesting to know what the other countries your call is crossing through might have in place to regulate...

      Maybe Elbonia has a tax for encriptio and then you're screwed ;-]

      (just to illustrate the idiocracy of national tax on international stuff. NEXT they'll empose a tax on making salt again...)

      Morc

  27. Questions about efficiency, bandwidth... by wskellenger · · Score: 3, Interesting

    Can the existing network infrastructure handle the additional bandwidth that would be demanded, if significant, by VoIP?

    How exactly does all of this work? It seems like the existing analog infrastructure would remain in place. After all, asking everyone to replace their existing handsets isn't going to happen anytime soon. Now the phone company will A/D my speech, then send it out directing it to another server local to the number that I dialed, which will D/A my speech and reproduce it for the ear of a person in another home?

    If the above is true, it seems that it would make sense for some additional offering from the phone company that would eliminate the A/D portion of the communication and the phone line to your house would become a broadband connection. Make the handset perform the Voice-->IP conversion with embedded software, and I can ditch my dial-up ISP...

    1. Re:Questions about efficiency, bandwidth... by Anonymous Coward · · Score: 1

      > Can the existing network infrastructure handle the additional bandwidth that would be demanded, if significant, by VoIP?

      They will if they reroute some of the current digital long distance lines to use in VoIP (aka, allocating more fiber to the internet). Currently, every long distance call occupies a guaranteed channel (or channels for multiple hops) regardless of how much it is being used. While this does guarantee that you don't get dropped voice packets, it also means that all the empty space where one person isn't speaking is being wasted. VBR encodings, though, can much better maximize the usage of lines which might mean even fully dropping some lines. In the long run, though, I'm not sure if it's worse to get dropped/delayed messages or to get a busy signal during slightly overly maximal supported bandwidth usage.

      > How exactly does all of this work? It seems like the existing analog infrastructure would remain in place. After all, asking everyone to replace their existing handsets isn't going to happen anytime soon. Now the phone company will A/D my speech, then send it out directing it to another server local to the number that I dialed, which will D/A my speech and reproduce it for the ear of a person in another home?

      In a nut shell, everything past the local phone office is digitzed and packeted. Ie, your local phone company behaves a lot like an ISP sending out data packets. Admittedly, the idea could be extended to digitize everything and have your phone do the actual expansion out which works well if you have local routers to network out the calls. However, rewiring your immediate phone network into a tree structure will cost a lot to do, even if the end result ends up being more efficient on the average case..not to mention the cost of buying a new phone.

  28. Underlying technology is surely irrelevant by EmbeddedJanitor · · Score: 2, Interesting

    When telephone calls went from copper to fibre did the rules change? No. So why should the rules change because the calls are going over IP?

    --
    Engineering is the art of compromise.
    1. Re:Underlying technology is surely irrelevant by r_cerq · · Score: 1

      To keep it simple, think "OSI Layers".
      When voice went from copper to fiber (or to whatever might come next), you basically kept the same protocols over it. In short, you still needed to allocate a full channel to have a voice conversation, and there's only so many channels you can push into a copper pair or a fiber link (say, a T1, with 24 channels, or an E1 with 30 channels.)
      Imagine you're a telco with an E1; you can only carry 30 simultaneous voice calls. You upgrade to an STM-1 (IIRC, about 21 E1, or 630 channels). Still not many calls, right?
      But an STM-1 carries up to 155 Mbps worth of data. A regular voice call usually takes about 64kbps; do the math: you can carry a lot more voice calls if you do them over IP; over 3 times more, in fact. That's 3 times less permits, taxes, and renting you have to pay the govt for landlines...
      The actual numbers aren't really this straightforward, but you get the ideia...

    2. Re:Underlying technology is surely irrelevant by EmbeddedJanitor · · Score: 1

      Yup... Going to IP or wet string or whatever might be a better implementation for some reason (cost, bandwidth, whatever). As far as the FCC is likely to see this the change in implementation should not impact on their "right" to tax/control/whatever telecom any more than any other change in the history of telecom. I'm not arguing that this control is a good thing, but just arguing that it should be free because it is over internet is plain illogical.

      --
      Engineering is the art of compromise.
    3. Re:Underlying technology is surely irrelevant by r_cerq · · Score: 1

      It shouldn't be, but they shouldn't be equally taxed, either.
      Govt taxes should be applied only to property/land (holes dug, cables in the ground, cables in the air) and radio spectrum (which must be regulated as a deterrent, or we'll eventually have fried pigeons falling in our laps :-)). Trying to tax thing like "1 minute of voice conversation costs X cents" is both unjustifiable and dumb.

  29. How can they regulate our behaviour? by Anonymized+Coward · · Score: 1

    I mean, how can they control my internet phone usage? Almost everyone who has a higher bandwidth connection can use the right software to make phone calls. Can anyone give a clue?

    --
    Those who are possessed by nothing, possess everything. Morihei Uyeshiba
  30. Re:Bigger Government by Anonymous Coward · · Score: 0

    > Face it folks, the government is only
    > going to get bigger. It ALWAYS has, and
    > it ALWAYS will.

    Until there is some overwhelming tide of public action, like the Boston Tea Party or some other revolution or war.

  31. Re:Bigger Government by EvilSporkMan · · Score: 1

    What's wrong with real communism? Look at The Communism.org FAQ under "science vs. bullshit", Mr. Bullshit. =P

    --
    -insert a witty something-
  32. Australia -$25 a month line connection fee by Anonymous Coward · · Score: 0

    And there are no free calls in that lot. We have a huge 22 cents per excess Megabyte on ADSL. Regulate, but just be aware that you will drive some to private point to point microwave dishes, or lay their own fibre (service duplication). Best leaving this one alone.

  33. hm by machine+of+god · · Score: 2, Insightful

    Well lets see. Technically they're only charging fees so that they have the ability to do their regulation thing right? But they don't need to regulate. So why do they need the fees?

    (I know the answer, I'm just making a point)

  34. Re:Government Won't Lose Tax Dollars by Anonymous Coward · · Score: 0

    Well done on spelling "Tax" and "Dollars" correctly. I can see you have the right priorities!

  35. I, for one... by michaelhood · · Score: 0

    welcome our new voip-taxing overlords.

  36. Re:Bigger Government by Anonymous Coward · · Score: 0
    Face it folks, the government is only going to get bigger. It ALWAYS has, and it ALWAYS will.
    Makes sense, since the population is getting bigger, the government has to get bigger to keep pace.
  37. They couldn't regulate it if they tried by plinius · · Score: 0

    Encryption within P2P can easily prevent "authorities" from knowing what kind of data is being transferred, so it's a non-issue!

  38. Re:Bigger Government by DigiShaman · · Score: 1

    If I receive no reward for my hard labor, then why should I slave away? Better yet, maybe I should just sit on my ass and let everyone else do the work. Either way, a communistic government will still give me the same...right? Oh, but I forgot. Everyone else would prolly be thinking the same way as I am. Thus, no one would be working their ass off and everyone would end up having a shitty lifestyle.

    On the other hand, capitalism takes the selfish aspect of human nature and spins it into a positive way of life for the all of society. I'll take the all might buck-in-hand thank you very much.

    --
    Life is not for the lazy.
  39. Lose money? by node+3 · · Score: 1

    Federal and state governments could lose billions of dollars in revenue from regulatory fees if calls moved onto the Internet are no longer subject to the charges.

    You can't lose what you don't have. What they mean is they will have less to steal from.

    1. Re:Lose money? by nomadic · · Score: 1

      Uhh, newsflash, "they" is "us". We elect them, they're drawn from our ranks, and I for one don't really want to see a financially mismanaged government lose even more revenue.

    2. Re:Lose money? by node+3 · · Score: 1

      Uhh, newsflash, "they" is "us". We elect them, they're drawn from our ranks, and I for one don't really want to see a financially mismanaged government lose even more revenue.

      Two points:

      1.) "Us" is a word with a specific meaning. You are not using it that way.

      2.) The proper way to fix financial mismanagement is not to give the incompetent even more money. To do so would be to reward incompetence, which becomes an incentive to be incompetent.

  40. technology in classrooms by thephydes · · Score: 0, Offtopic

    The article highlights what I and other math teachers have been arguing for some time now. Technology is no substitute for deep understanding, and that the basics, such as tables and arithmetic skills are as essential for success in math are the alphabet and spelling for success in english.

    1. Re:technology in classrooms by npistentis · · Score: 0

      methinks you may have planned on posting to http://slashdot.org/article.pl?sid=03/11/30/222420 4&mode=thread&tid=103&tid=126&tid=146&tid=99&thres hold=-1 this discussion...

      --
      Gentlemen, you can't fight in here! This is the War Room!
  41. Opening up the internet to taxes? by npistentis · · Score: 1, Interesting

    My question is this [and it may be a stupid one, i realize]: if the federal government is allowed to tax er, ahem, "regulate" VoIP, doesnt that open up other web-based systems to taxes as well? There has been discussion about small fees per email, or per page view. If VoIP is suddenly taxable, then isnt all data transmitted via a networking protocol suddenly fair game? Am I going to have to pay on a per-ping basis?

    --
    Gentlemen, you can't fight in here! This is the War Room!
  42. Let your voice be heard! by spiritraveller · · Score: 2, Informative
    Monday's forum is open to the public and there's going to be a webcast too.

    Those of us who feel strongly about this should watch the webcast or attend in person. Be sure to submit your comments to the FCC afterwards.

    It's your government. If you think regulating VOIP is a bad idea, let it know.

    Usually, only the big companies and their lawyers take part in this process, but we all have the right to take part and let our opinions be known.

  43. opening the telecom/government black box by Doc+Ruby · · Score: 1

    Now that there is finally a chance to realize the promised "competitive phone carriers", the monolithic tariff model applied to the monopoly telcos needs revision. This was discussed in more detail in "P2P fees instead of invasive C/S tax". "Telephony" need not be monopolized to be regulated as an essential service. But its taxation model must be revised to account for its new financial landscape. Especially during the transition that is now upon us, with wireless/mobile and VoIP/open service models, consumers must be protected from the failed risks not/taken by the incumbent and emerging telcos. If administered sensibly, the new system will provide more economic efficiency and scalability. Qualitative hurldles like untested, centralized microtaxation and superfluous "competition" requirements combine with reckless growth and incompetent market entries to doom the wellbeing of people who will increasingly depend on the communications. If you contact your representatives with organized, friendly geek insights, they might be prepared to represent you in the face of the new telcos and their armies of lobbyists.

    --

    --
    make install -not war

  44. Addition to parent by charnov · · Score: 1

    Sorry...that was $6,000 PER MONTH on long distance

    --
    [RIAA] says its concern is artists. That's true, in just the sense that a cattle rancher is concerned about its cattle.
  45. FCC - hands off our Internet! by Anonymous Coward · · Score: 0

    The FCC has no authority to regulate what kinds of data are being exchanged over the internet. I am sure that the democratic majority of us, the people, does not want to have the FCC regulate the internet in any way. Therefore, you better keep your corrupt and dirty hands off our beloved internet, you dirty FCC buerocrats, or we will resort to more stealthy methods of communication over the internet.

  46. Re:Bigger Government by EvilSporkMan · · Score: 1
    Ok, try socialism then. Socialists pay you for the work you do - you don't work, you're going to have a hard time eating. The difference is that everything is manipulated so that no one needs to work all the time to live, and everything's price is the labor cost to make it. Hell, why not...my essay on the subject included below. (I had to write this for English, about The Jungle)

    ----BEGIN LONG ESSAY, SEE POST ABOVE----

    Sometimes, people change the world in ways they don't intend. Upton Sinclair did just that with his 1906 novel The Jungle, widely remembered for the uproar its vivid descriptions of the unsanitary conditions in the meatpacking industry caused. However, Sinclair's true intention in The Jungle was to convert the reader to socialism, an economic system largely superior to the capitalist system that still rules America today.

    Many people dismiss Sinclair's argument immediately because they know of the sad fate of the Soviet Union and other communist nations. First of all, communism is a more extreme form of socialism; not all socialists are communists. The corrupt governments of these nations and their suppression of all opposition resulted in them never truly becoming communistic, nor even socialistic. Another concern people have about the idea is that it will erase democracy, but this results from the misconception that it is a political theory; in fact, the socialist method deals mainly with economics. Therefore, the two theories are not necessarily mutually exclusive.

    As with every group, the socialists don't all agree on everything, but there is, of course, the common belief that makes them one: a|a Socialist believes in the common ownership and democratic management of the means of producing the necessities of life, anda|that the means by which this is to be brought about is the class conscious political organization of the wage-earners. (Upton Sinclair, The Jungle, p. 336) In other words, the industries that make basic goods, like food, pencils, and so on, will be owned in common and used for the good of everyone. Thus, Sinclair's argument is actually a very high application of democracy.

    In contrast to socialism, capitalism focuses on private ownership and looking after one's own self. In it, corporations or private individuals make the things that everyone needs, and their competition with each other results in lower prices and quality goods. However, corporations have displayed a tendency to organize against the consumer and form trusts or cartels in order to raise prices, lower quality, or impose arbitrary terms to everyone. The Jungle railed against the Beef Trust in particular, with descriptions of the unsanitary conditions in its factories, the way the foods were adulterated, and ...all the miracles of chemistry which they performed, giving to any sort of meat, fresh or salted, whole or chopped, any color and any flavor and any odor they chose. (p. 133) Modern companies have displayed similarly underhanded behavior. For example, the music industry is now suing its customers and pursuing draconian legislation in an attempt to keep itself alive in the face of new technology for music distribution, all while cheating the consumer by gouging prices on many albums.

    Socialism does away with the exploitation of the population by corporations because it allows the workers themselves to own their workplaces. This results in the death of the corporation, whose sole purpose for existing is to shelter its owners from legal entanglements. However, many interpret this to mean that everyone would be paid the same. Sinclair answers:

    Manifestly not, since some work is easy and some hard, and we should have millions of rural mail carriers, and no coal miners. Of course the wages may be left the same, and the hours varied, one or the other will have to be varied continually, according as a greater or lesser number of workers is needed in any particular industry. That is precisely what is d

    --
    -insert a witty something-
  47. I said this before and I'll say it again by melted · · Score: 4, Insightful

    They either should remove taxes from my DSL bill OR from phone bill, because right now I pay two sets of taxes. They're trying to eat with two spoons, and this is not the prettiest way to eat, especially if someone feeds you. The fella giving you money may decide you're too greedy and cut off your food supply for good.

    1. Re:I said this before and I'll say it again by NSash · · Score: 1

      They're trying to eat with two spoons, and this is not the prettiest way to eat, especially if someone feeds you. The fella giving you money may decide you're too greedy and cut off your food supply for good.

      That metaphor was like a trainwreck, that kept going and going long after it should have stopped after the first comma and slammed into your point causing carnage, causing passersby to avert their eyes in horror.

  48. This is so not right by Anonymous Coward · · Score: 5, Insightful

    http://www.washingtonpost.com/wp-dyn/articles/A200 32-2003Nov28.html

    This is insane. Telecommunications carriers routing phone calls over the internet. This article doesn't even touch upon several issues.

    1) Local companies can deliver long distance service (by passing Federal Regulation).
    2) Quality of service.
    3) Higher rates
    4) More profits for the Telco's and higher rates for users.

    Let me illustrate. The fees on your bill pay for the telecommunications infrastructure, in part by flat fee on your bill, taxes and some gets taken from each phone call. Now based on this premise, all companies will be routing over the internet. The possible/probable affects will be:
    1) distortion on phone calls because traffic is high on the internet.
    2) broken speech on calls
    3) try calling 911 and have your speech broken up so that the other side cant hear you.
    4) higher rates for everyone. Guess what, we all have to pay for the telecommunications network. Now the gov will not be making as much money for supporting the network. To maintain it their will be a raise in rates. Guess who's rates are going to be raised? Flat rate, taxes and per call usage. But what about all the money that the Telco's are making from this cost savings maneuver? That cannot be touched because it was not made on the regulated side of the house.

    Now the telecommunications companies will not be governed by the FCC on phone calls. The FCC is the guardian that keeps the Telco's in check. Now there will be no check. Great, unregulated telecommunications companies.

  49. How to tax VoIP by Squelch+Oil · · Score: 0

    In the end, I believe the debate isn't about regulating VoIP technology, but rather guaranteeing government tax revenues. Several people have pointed out how difficult it will be to properly identify voice calls and collect taxes from overseas companies offering voice services. So if the services this tax is being collected for, 911, rural access, etc, are considered basic services that the government should provide...then why not support them through the normal IRS personal income tax system? That might mean an apparent tax increase come April when people file, but then again, they are paying it already, it just hides on their phone bill so they are less likely to notice it.

  50. Voice over IP to IP by Skapare · · Score: 1

    As soon as we can eliminate the need to jump from the data network over to the old depricated voice network, then we can do all voice on an IP to IP basis, with encryption. That can help eliminate one of the big nasty problems in progressing in technology: politicians trying to stick their fingers in it.

    --
    now we need to go OSS in diesel cars
  51. Taxing point by noelo · · Score: 1

    The US government will probably place a tax on the internet connection point i.e. like a federal line rental.

  52. the solution is simple by jonwil · · Score: 1

    Basicly, pertty much the entire population has:
    A.a regular phone line
    or B.a broadband line
    and 1.a regular PSTN phone
    or 2.a VOIP phone

    Currently, the regulation is applied to phones not to lines.

    When you get a phone line or a broadband line, you pay some money each month to the provider (e.g. covad, verizon, SBC, Qwest etc).

    Basicly, the solution is that anyone who has a broadband line or a phone line gets the payment added to the monthly fee (i.e. you pay the tax on the line not on the phone or the calls).

    Its a good solution since it doesnt matter how the calls are transmitted, the state still gets its tax.

    1. Re:the solution is simple by Anonymous Coward · · Score: 0

      and what do we get? what does the tax fund?

      taxes aren't here just to tax us. Some people have lost sight of this? If they are going to be taxing my cable line, then I want them to spend that tax money on bringing fiber to every neighborhood in the United States of America.

  53. Re:Bigger Government by DigiShaman · · Score: 0, Troll

    What your essay reflects was basically the life and culture of America before the 1920s. Nowdays, our government has become more involved with corporate activity that the "system" of free enterprise (Capitalism) is no longer as effective as it use to be. There is no denying the fact that some government involment is necessary to prevent expoitation of the people. But, it's involment is getting so bad it's now riddled with corruption. So no matter how you slice it, bigger government = bad government. Socialism, Capitolism...it doesnt matter. Once the momentium of government getting bigger get's rolling. Oppression starts to rear it's ugly head.

    --
    Life is not for the lazy.
  54. Give me your money by anti-tech · · Score: 3, Insightful

    I do not know how the government will tax this, but I am certain that it will not be well thought out or fair. It will be decided by who gets the most money and/or has the best lobby. In both cases, the average citizen will lose. This is how capitalism works: extract the most money you can from everyone. Kind of like a vacation at Disneyland without the fun.

  55. Re:Your bowels cleansed by Anonymous Coward · · Score: 0

    Welcome back!

  56. I have only one thing to say. . . by Fantastic+Lad · · Score: 0, Troll
    GREEDY BASTARDS.

    Oh, and. . .

    Are people 'terrorists' if they become sickened with corporate/government leeches? Of course not, but that won't stop the Powers That Be from getting nervous when the masses start to steam with indignation. This is the reason for the push to remove freedoms and create a police state; fear of reprisal from the masses who are getting hurt and bled worse every day. This, and nothing more. Anybody who believes otherwise is a chump.


    -FL

  57. Example VoIP architecture by N7DR · · Score: 2, Interesting
    One reads lost of well-meaning posts about VoIP here on /. Not all of them are very accurate, however, and many of them simplify (or even trivialise) the notion of doing telephony over IP to the point where the reader can easily come away with conclusions that are incorrect.

    I would recommend that anyone who is interested in understanding the intricacies of providing a telco-equivalent level of service to a residential user in an IP environment should take a look at the specifications at www.packetcable.com/specifications/. PacketCable(TM) is the cable industry's set of standards for providing telephone service over broadband. As you will see, doing VoIP properly is not quite as simple as some people seem to believe.

    There are (of course) other ways of doing telephony over IP, but this set of specifications is free and easy to download, and the documents do give the interested a reader a good idea of the kinds of issues that have to be addressed.

  58. One practical problem ... by jc42 · · Score: 4, Insightful

    VoIP is just a TCP connection, right? So in general is it even feasible to regulate (i.e., tax) VoIP separately?

    If so, this brings up the interesting question of regulating other kinds of TCP traffic. Given things like VPN and SSH, it can be exceedingly difficult to even discover what sort of traffic is carried on a TCP connection. If my employer requires that I set up a VPN link to work, and I happen to have a phone plugged into my computer that uses the VPN to make work calls, how do the regulators measure my use of VoIP. It's just some portion of those encrypted packets going over the VPN connection, but that packets also include my vi sessions, rsyncs, ftps, and all the other things that I do as part of my job. Does this proposal mean that I'll be paying voice-line rates for my all-day VPN connection to work?

    You might think that a wireless VoIP phone would be an exception that's easy to regulate. But my current cellphone is also a Palm Pilot, and I can and do use it for web access. Currently, voice and http on this phone use different low-level protocols, so they can measure them separately. But with VoIP, the voice and http connections are just TCP. I also work with databases, and much of that work is voice-like in that it has bursts of data alternating in both directions. Will this have the characteristics of VoIP, and thus be regulated/taxed as phone usage?

    One possibility is that we'll suddenly find that all TCP connections are considered "voice" and charged extra. But we can probably all imagine the outrage this would produce - especially from people running commercial web sites.

    Anyway, it'd be interesting to hear how they're going to sort out the voice sessions from the data sessions, when they're all just TCP connections.

    --
    Those who do study history are doomed to stand helplessly by while everyone else repeats it.
    1. Re:One practical problem ... by YetAnotherDave · · Score: 3, Interesting

      minor detail: voice data is passed via RTP, which uses UDP, not TCP. Retransmission of voice data is generally not worth the effort, so the lighter-weight UDP protocol is more efficient...

    2. Re:One practical problem ... by muckdog · · Score: 1

      Taxing direct TCP to TCP Phone calls would be difficult. You don't need a VoIP Phone company to perform these types of calls. Having a phone number that can be called from a regular phone and being able to call regular phone is where you need a carrier. This is where you'll get taxed.

    3. Re:One practical problem ... by Lodragandraoidh · · Score: 1

      VOIP is not just a TCP/IP connection. Based on the H.323 standard, the network must be established to support VOIP telephony to gain a QOS standard for audio and video. This basically means voice and picture packets get priority over other forms of transport on that network, and call routing is optomized depending on available telephone gateways etc.

      This is not like connecting two machines via TCP/IP, and therefore is not an issue for individual users who want to connect their machines for communications purposes.

      The regulations will effect entities set up for the purpose of providing a communications service for a fee; again, that does not include you using Roger Wilco or TeamSpeak to talk to grandma over the internet. Additionally, these tools will not provide the sound quality consistent with H.323 network connectivity - and will not support such services as POTS gateways or 911 service, which the service providers must also provide by law.

      Don't lose any sleep over this. Individual network users have nothing to fear (unless the FCC goes completely froggy - in which case, all bets are off. However, the FCC chairman is leaning away from regulating anything on the internet - so regulating individuals is the furthest thing from his mind atm)

      --

      Lodragan Draoidh
      The more you explain it, the more I don't understand it. - Mark Twain
    4. Re:One practical problem ... by jc42 · · Score: 1

      voice data is passed via RTP, which uses UDP, not TCP.

      Yeah; I've been wondering about that. RTP does seem like the better protocolfor such apps. But I've had difficulty using it. It doesn't seem to exist on many computers that I have access to. This puts some serious constraints on the prospects for using it in any software that you want to be at all portable. But it does seem like a good idea if your softare only needs to run on one platform.

      In any case, it's not really all that accurate to say that RTP "uses UDP", any more than TCP does. They are more properly viewed as three protocols at the same level. Of course, TCP and RTP need most of UDP's packet-passing capabilities, so TCP and RTP headers contain fields that are very similar to those of UDP header fields. And any decent implementation is going to share code among all three. But viewing UDP as a lower-level protocol that is used by TCP and RCP is useful mostly as an initial teaching device. When you get into the implementation details, you discover that it's not really quite true.

      A better model, if you want to understand an implementation, is of a "protocol module" with three entry points or operational modes. Or four, if you also count ICMP. Or five ...

      --
      Those who do study history are doomed to stand helplessly by while everyone else repeats it.
  59. I for one love my Vonage by thumbtack · · Score: 1

    I use Vonage and have for about 6 months. I use the data port on my phone to drop it into the exsting phone wiring for the entire apartment. So I can call from the kitchen bedroom etc. The only time I've had problems has been when the virus attacks bogging down the net. You also don't want to be downloading huge file while talking..other than those little issues, we dont need no stinkin regulations...

  60. Wait a second... by Anonymous Coward · · Score: 0

    Aren't the Republicans in control of the government? I thought the Repubs were for less government? This makes no sense! Can a wise republican educate me on why it's a foregone conclusion Repubs will want to tax?

  61. The issue is hottest where VoIP meets the PSTN by isdnip · · Score: 2, Informative
    The FCC really has no interest in regulating VoIP per se. A telephone call between two IP nodes (computer to computer) is simply not of interest to them. It is competition, sure, but that's okay; they're supposed to support competition. They generally don't, but they're supposed to.

    Here's Chairman Mike "the lesser" Powell on the subject, from http://hraunfoss.fcc.gov/edocs_public/attachmatch/ DOC-241750A1.pdf

    And I think the first thing is to truly commit ourselves to understanding the technology
    and the market and the nature and the way in which it's unfolding so that we're not fearful --- we
    don't approach this with fear, but we approach it with excitement and optimism that this is
    inherently a good thing for the world, a good thing for the country, a major breakthrough in
    telecommunications and communications, and a great new opportunity and promise. We shouldn't be afraid of that.

    I personally think we should be embracing it. And so I think that that's an important part of the debate. And so we're very excited about it.

    I have decided that the Commission is now going to start exerting itself in this area much more directly. And that is not to say regulating it either, only to put a marker down that it's time to start having these policy questions in forums that matter. I really don't. And I think that we
    run the risk that if we don't move quickly to at least show that we're focused on it, then if you
    don't have a state jurisdiction do it, you will have a court do it.


    There are some big issues still unresolved. The current FCC policies, which are largely supported by the language of the Telecom Act, classify calls made through regulated local telephone companies (VZ, SBC, etc.) as "telephone exchange service" (basically, local) and "exchange access service" (basically, end legs of a toll call). Those have different prices; LD carriers usually pay more for "access". VoIP is sometimes used as a way around that. So it threatens that subsidy mechanism, which is particularly important for rural telephone companies.

    So the big questions focus on when does a VoIP call become long distance "access" rather than "local" or ISP-bound "exempt information access" (ISP access dialup calls, for now, are legally classified as not local. but telcos are usually required to treat them as if they were). And if VoIP calls are exempt, when is a call exempt? If AT&T sticks IP headers on the middle of its LD trunks, transparent to the user, does it become exempt? If the trunks are dedicated VoIP circuits? If the calls sound crappy enough?

    I'm not sure the FCC is going to come up with any great answers in a hurry, but they have enough problems figuring out what the telephone companies can charge VoIP users without having to worry about messing around with Internet user traffic.
  62. they have already created a feelgood presumption. by Cryofan · · Score: 1

    ...that the internet is untouchable on taxation--that was the feelgood assumption on the part of American. THis assumption was created by politicians and the media and was fueled by dotcom dollars. It was part of the dotcom propaganda machine. So taxing the internet now is going to be hard for the politicians to do.

    --
    eat shiat and bark at the moon
  63. Hmmmm by rofthorax · · Score: 1

    The government only need start charging fees, and then we are really in trouble. Is that the telephone companies true intent? But then again, it would make people responsible for their Internet use..

    --
    Just say no to license servers!!
  64. DANGEROUSLY WRONG by Anonymous Coward · · Score: 0

    This is dangerously wrong. The local telco is not required to provide you with 911 service if you aren't connected. AFAIK, if you don't have a dialtone, 911 will not work, period.

    At least where I live, it's very common for your copper pair to be physically disconnected somewhere upstream. When your neighbor gets a second phone line, they'll use your old pair.

    This is the second time I've seen someone make this dangerous claim. I'm as bad as the next slashdotter when it comes to unresearched assertions, but perhaps we should take the life-threatening ones more seriously.

  65. No - by jc42 · · Score: 0, Offtopic

    You forgot to condemn SCO.

    --
    Those who do study history are doomed to stand helplessly by while everyone else repeats it.
  66. bullshit by llZENll · · Score: 0, Flamebait

    this is bullshit, why does the government need or get any taxes from communications, taxes on comm should be treated like food, you can't tax a basic human right, and in the US speech is a right...

  67. Telecom Regulation by Aaron+M.+Renn · · Score: 3, Insightful

    I'm sorry, but if traditional telecom is subject to regulation, VOIP ought to be as well. The current regulatory scheme is set up, to some extent, to use local line charges to subsidize other services, in returns for some profit skimming. If we allow VOIP to bypass the local loop for high margin service (e.g. eliminating access charges for LD calls), then we need to rethink regulation.

    When your significant other (or you for that matter) has a heart attack, you want to pick up that phone and call 911 and expect someone to pick you up, not to hear that, sorry, there is network congestion or a DDOS attack on the local router. Somebody has to subsidize telecom services for the poor. Etc.

    It is certainly not fair to saddle traditional telecom with burdensome rules while exempting new players. At a minimum, the old players ought to have their regulations lifted. Of course, the slashdot crowd doesn't want that either. That would mean they would be exploiting their monopolies.

  68. Not GPS by FunkyRat · · Score: 1

    I'm pretty sure cell phones don't broadcast GPS. AFAIK they are only able to determine your position relative to the current cell you are using. When you dial 911 with a cell phone, you are just patched through to the nearest E911 call center and there is the fact that you still have to actually dial 911. Of course, two or more cell towers could be used to determine your position more accurately, but then an outside agency would have to be really determined to find you.

    Those On-Star systems do use GPS though I think. My father had an incident where the passenger side air bag deployed for no good reason while driving his car and the On-Star operator immediately cut in asking if he was OK. They knew his position exactly.

    Even your landline phone does not magically broadcast your GPS coordinates. When you dial (and as above you must dial) 911, your call is again patched through to the appropriate E911 call center, along with your Caller ID information. The E911 center computers correlate the Caller ID info with the records stored for that number in their database and display it for the E911 operator. I do not believe you can block Caller ID for 911 calls as that would sort of defeat their purpose. Again, if a determined outside agency wishes to know where you are or tap your phone, they have much more direct methods than E911 (and with the expansion of FBI powers that was just rammed through Congress, likely they don't even need a court order). But then, you don't have anything to hide, do you citizen? ;-)

    However, if you wish, I am having a Giftmas special on little tin foil hats for your phone this month. Only $19.99 (after $50 rebate + tax and S/H). Festive holiday colors!

  69. Java and Packard Bell by FunkyRat · · Score: 1

    PS: In reference to your sig... Not to start a language flame war, but like Java, early Packard Bell computers were slow and clunky. As the company matured, they started turning out some pretty decent machines and they had IMHO, perhaps the damn best support web site. You could enter the serial number of any machine they built and find out exactly what was in it when it shipped. Similarly, while not perfect, I kind of think Java has grown up too and is a pretty decent programming language for a wide variety of applications. I wouldn't go trying to program an OS in it though. Everything has it's purpose (except perhaps our Pretender In Chief).

    1. Re:Java and Packard Bell by man_ls · · Score: 1

      Doesn't change the fact that in the end, Packard Bell went out of business, and are relegated to being remembered in references like the ones I made.

    2. Re:Java and Packard Bell by FunkyRat · · Score: 1
      Doesn't change the fact that in the end, Packard Bell went out of business...

      That'd be news to Packard Bell. :-) Actually, after acquiring Zenith's PC line, they were acquired by NEC and continue to do business under the Packard Bell name in Europe. At the time (1996) they shipped more PCs than any other manfacturer in the U.S. Oddly enough, despite using cheap components, they couldn't compete in the US when PC prices started to fall so rapidly. Perhaps it's no so much that Packard Bell went out of business because of their shoddy reputation as all the other PC manufacturers began behaving just like Packard Bell.

  70. Teamspeak, Teamsound, Ventrillo by TyrranzzX · · Score: 1

    3 Voice over IP applications that a lot of online multiplayer clans use to communicate during matches. The clan I'm part of is from all over the usa. I can also use the same apps to call crosscountry to relaties who also have it setup. The total cost? $50.00 a month, which is my internet bill.

    They aren't afraid of the technology itself, they're afraid of losing revenue. In time, the internet will become the de-facto transmission medium for everything; television, voice, music, any kind of media or data. Because of the internet, they can't charge me $30 to call cross country for a few hours. The quality is actually better than the phones too. The baby bells on the old system are dinosaurs; old, slow, can't adapt when a meteor hits and they know it. Besides, I'v been hearing this BS for the past 5 or so years, they aren't going to do anything.

    And even if they did, I really can't see how they'll regulate this without opening a can of worms. You can say "voice transmission over ip" but defining it in stricter terms is difficult You can moniter network traffic, but the problem is figuring out how to read the data fields in the packets so that you know it's voice. one set of 1's and 0's can be construed as information for a game while another packet is music, whilst another is a download. Sure, you can identify certain IP addresses and tax based on that, but you're still limited. One company is going to decide it's going to use a completly different protocol based on IP, such as proprietary IP and fool with the regulation that way. After the cat and mouse game has played it's cards, you'll be taxing free speech in order to trap the mouse that is voip.

  71. Re:It is cheaper for the telco's by Technician · · Score: 1

    Putting it over IP doesn't necessarily make it any cheaper

    It is a lot cheaper when the regulations charge huge fees for telco traffic. If the telco's shunt the call volume to internet, they go past not through the government traffic meter.

    An example to demonstrate this, is if you had a generator in the back yard. To regulate it, there is a charge for the electricity generated by it going to your own house.

    Instead of using only electricity from the plant that all goes through the electric meter, you add a mechanical shaft from the plant to the house and generate some of the power in the house. There is no meter on the shaft, therefore the additional cost of doing it the hard, less reliable way, is offset by the savings by not running it through the meter and paying for the delivery you do yourself on your own lines.

    The telco's have the lines. The government taxes the traffic on them. Changing the format and shunting the meter to a less regulated path is where the savings are.

    The taxes is why my land line is so expensive. That is why basic cell phone service is competitive with a land line, even though landline infrastructure is much less expensive.

    --
    The truth shall set you free!
  72. Fab by filmsmith · · Score: 1

    Let me tell you how it will be
    There's one for you, nineteen for me
    'cause I'm the taxman, yeah, I'm the taxman

    Should five per cent appear too small
    Be thankful I don't take it all
    'cause I'm the taxman, yeah I'm the taxman

    If you drive a car, I'll tax the street,
    If you try to sit, I'll tax your seat.
    If you get too cold I'll tax the heat,
    If you take a walk, I'll tax your feet.

    Don't ask me what I want it for
    If you don't want to pay some more
    'cause I'm the taxman, yeah, I'm the taxman

    Now my advice for those who die
    Declare the pennies on your eyes
    'cause I'm the taxman, yeah, I'm the taxman
    And you're working for no one but me

  73. They will, they will... by Anonymous Coward · · Score: 2, Interesting

    The original poster very clearly said "they will", not "they do".

    Many U.S. states have no sales tax whatsoever

    Wrong. Not "many". Very few. Six or less, I believe. And I'm not aware of anything that prevents the state from imposing one in the near or distant future, or the federal government from imposing a federal sales tax. Name a state that has removed a sales tax. Okay, now name the states that have added them over the years. It's pretty clear what they will do, given a little time.

    Every road you drive on isn't a toll road.

    The trend in every state is generally moving towards tolls on roads. The big ones, the busiest ones, and the most expensive ones will come first, obviously. And perhaps heavy users or commercial users are hit first. But it all trickles down. Do you know of many roads that have had tolls added over the years? Okay, now do you know of many roads that have had tolls removed? Tolling roads is a clear trend, in all states. Technology only helps administrate this. Why don't they toll the smaller roads? Infrastructure too expensive. Would they if they could impose a low, fair price and you only paid for the miles you used? Damn straight. Is the technology there that lets them do that? Almost.

    If there is something they can tax, they will. Just give them a little time...

  74. Perfect example - allocate taxes where they belong by NotQuiteReal · · Score: 1
    What were communications taxes being collected for, in theory, and do they go for that purpose? Maybe we are done with hooking up rural phone lines or whatever it was (wasn't part of the phone tax a Spanish American war tax? I think they JUST got rid of that part within the last couple of years.)

    If we can get away from "general funds" (and hence, no accountability of where the funds go)it might be a step in the direction of lowering the overall tax burden - by not letting tax money be spend for so many (tax payer un-approved) uses!

    Gas taxes, for roads, Airport taxes for airport security, property taxes for schools, police, and fire... if each fund were spend only on what they told us it was for, we'd be fine.

    Something old is "complete" (yeah, right), sunset the tax. Something new comes up to spend money on? Put it on the ballot.

    Heh, I think LA is still paying .5% sales tax for the 84 Olympics (which, as I recall, actually turned a profit!)

    end of nearly off-topic rant

    --
    This issue is a bit more complicated than you think.
  75. I Don't Care by TwistedGreen · · Score: 1

    I know this isn't very in-line with the techie mentality, but I DON'T CARE. If I want to make a phone call, I'll pick up my phone and dial. Sure, I'd want a reasonably cheap rate and choose my carrier accordingly but, as long as it works, I don't give a shit whether it's routed through Madagascar or not. This is between the government and the phone company. I don't have a place in any of it.

  76. Re:One practical problem ... answer: QOS by Anonymous Coward · · Score: 0
    If you want to offer telephone service that's anywhere like what we're used to on an ordinary 'phone, you need guaranteed quality of service. No big hiccups, no long weird silences and dropouts.

    I don't think VOIP can guarantee that over ordinary internet with the volume of calls the ordinary telephone system carries.

    So the chances are the telcos would like to have channels called internet connections that really aren't (e.g., leasing a fiber in a bundle where other fibers carry internet traffic that can have congestion, and saying it's an internet link and should be free regulatory of taxes or fees, or a packet link with high QOS that functionally amounts to a separate leased line). That would be a big gain. If they lose that ploy, they will scream no fair and try to get all internet traffic regulated, even low-QOS that can't handle significant usable telephone traffic. Then they gain against VOIP competition that might be viable in spite of being bad part of the time, like VOIP over cable TV through cable operators' equipment, meaning calling others also with cable TV might bypass the telco altogether.

    As the parent post says, there's no way to check on VOIP vs other data when it's going through a VPN (which business branches would be smart to use in any case to talk privately). But there could be way to monitor bulk traffic contracts with QOS guarantees, which IWT would be necessary for the telco's to use VOIP in any significant way -- at least until channels are so fast you don't need any guarantees.

    Of course, I suppose that will give an incentive to let congestion punish people using ordinary connections for VOIP, by not routing low-QOS through non-busy high-QOS links, so they can sell premium service.

    Feh, the whole thing should be a subsidized commons like the road system.

  77. bias by Jodka · · Score: 1
    Sashdot:

    Federal and state governments could lose billions of dollars in revenue from regulatory fees if calls moved onto the Internet are no longer subject to the charges.

    Bizzaro Slashdot:

    Individual tax payers and stockholders of tax-paying corporations could gain billions of dollars now lost to federal and state governments if calls moved onto the internet are no longer subject to regulatory fees.

    How about just sticking to the the facts without injecting a pro-government bias? Taxation is neither a net loss nor a gain of wealth. Taxation is a transfer of wealth.

    When you portray tax reductions as loss you are not telling us facts. You are telling us your opinion. You are telling us that you think lower taxation is bad. You want government officials to control wealth. Lower taxes are a loss, in your opinion , becasue you lose what you want : control by government. Objectively there is neither loss not gain. The wealth is still there, but some other group (the tax payers) control it instead of government officials.

    --
    Ceci n'est pas une signature.
    1. Re:bias by Mike+A. · · Score: 1

      If, after the past two years, you can't see any reason to believe private industry is hardly a much better custodian of money than the government, I pity you.

      --

      --
      Do I look like I speak for my employer?
  78. Rural Myth by yintercept · · Score: 3, Insightful
    Right. And note that, without regulation, there would never have been telephone service in many rural areas (and in some parts of some cities).

    Quite frankly, I think the subsidies for rural telephone is a myth that AT&T perpetuated to keep its monopoly. "We need a monopoly so we can rob Peter with the justification of maybe paying Paul."

    Farming is big business, if there was not a subsidized monopoly, you still would have seen a large number of rural cooperatives, and probably a faster evolution of telephony. In the end, the massive AT&T monopoly was proved overall setback, not a great leap forward for communication technologies.

    Regardless of our interpretation of history, I think the wide number of options for rural users makes subsidies even worse. Farms are better served by wireless. There is less maintenance, they have the open bandwidth in the country, and it is more useful.

    Costs of routing have dropped so dramatically, that the current tax structure costs more than the service, yet the government is addicted to taxes and will regulate just to collect taxes. They will justify their actions with anti-market myths like the rural phone gap. Don't give in to the game.

    PS: If living in the city is more efficient, shouldn't we be encouraging people to live in cities. taxing city folk to give money to country folk ends up creating a market inefficiency.

  79. Good. by pair-a-noyd · · Score: 1

    In my greedy ass state of Taxu$, they tax the living shit out of phone service.
    There's taxes on the taxes on the taxes.
    Pluss all that universal service tax that Klintoon slapped us up with.

    Fuck em. Let the states choke to death on it. Greedy bastards ass rape you every time you turn around. I would be glad to see them getting less money from me for once. And I don't get anything back from the state.
    I don't avail myself of any state provided services. At least any that are funded by telephone service taxes.

    So, states, eat shit...

  80. VOIP is here to stay, nothing anyone can do about by Anonymous Coward · · Score: 0

    The old fashioned telephone companies are going the same way as the antiquated music industry. Technology progresses old monopolies die. If the government tries to control wired networks private wireless ones will pop up everywhere. If I have a VPN or SSL connection to some other computer what is contained in my packets is private, it doesn't matter if its porn, music, software or voice calls ....its my business! That's the way it is!

  81. Cost of development by FunkyRat · · Score: 1

    I wonder though, how much of the cost of developing the internet was recouped when the government sold off the NSF backbone. Also, the internet was originally developed for the military and as such, development costs primarily came out of the DOD budget. Finally, the web was developed not in the U.S. but at CERN and as such very few U.S. taxpayer dollars went into web development, other than Federal web sites.

    As I stated in another post, the taxes and fees on my POTS line run about 30%. While I don't mind contributing to the telecommunications commons, 30% seems usury, particularly when we are taxed every where we turn these days (Federal, state, local, school, sales, etc.). I would expect that for the 90% of the population who earn less than $100,000 per year, that at least 50% of their income goes to taxes and fees in one way or another.

    OTOH, I think you're absolutely dead on that commercial interests rarely create anything really new and you're certainly correct that the invisible hand has not touched rural and impoverished areas. It just seems to me that we have a habit of imposing the taxes and fees in this country on the very people who can least afford to pay them when the large corporations should be paying for the privilege of doing business in this country. I fail to see how any of the five remaining kids of Sam Walton would have any less incentive to continue to do business if they each only made $19 billion instead of $20 billion.

    1. Re:Cost of development by jafuser · · Score: 1

      I would expect that for the 90% of the population who earn less than $100,000 per year, that at least 50% of their income goes to taxes and fees in one way or another.

      It would be interesting to see a fair report or thesis on what this number actually is. I wonder if there would be any pressure to stop the report before it's published...

      --
      Please consider making an automatic monthly recurring donation to the EFF
    2. Re:Cost of development by jc42 · · Score: 1

      I wonder though, how much of the cost of developing the internet was recouped when the government sold off the NSF backbone.

      Probably not nearly the entire development cost. Of course, the DoD did get something worth a lot: MilNet (with a lot of debugging by good academic hackers for free ;-).

      Also, though the official funding may have been almost entirely from the US military, the Arpa/Internet was recognize early on as valuable by the entire world's academic community, and they "funded" a lot of development as a side effect of other projects that used the growing network. Look at the involvement of astronomers for a good example. (And tracing the money becomes more difficult when you realize that the DoD has funded a fair amount of astronomical work.)

      It would be more accurate to list the US military as the "prime mover" behind what is now the Internet, and its main source of funds for the first two decades. But in reality, the development was so widely distributed, and done as portions of so many other projects, that tracking the true costs is utterly impossible.

      Of course, we can easily justify it all by observing that the Internet's value to academia and the world is "inestimable". In this case, both the literal and figurative meanings of that word are correct.

      --
      Those who do study history are doomed to stand helplessly by while everyone else repeats it.
  82. Users are winners by Anonymous Coward · · Score: 0

    users are always winners.

  83. Using their own evidence... by Eese · · Score: 2, Interesting

    They say that state and federal governments will lose tax revenue on these phone calls... But they also won't need that tax money to maintain the system that governs the older phone systems. Of course, my arguments assumes that almost everyone will switch over to phone calls via the Internet, but their argument also admits that enough people to warrant a change are already doing it.

  84. blur the line by jago25_98 · · Score: 1

    If it does go to regulation lets blur the line with different standards.

    Speakfreely anyone? ;)

  85. capitalism ? (was Re:Give me your money) by cascadingstylesheet · · Score: 1

    I do not know how the government will tax this, but I am certain that it will not be well thought out or fair. It will be decided by who gets the most money and/or has the best lobby. In both cases, the average citizen will lose. This is how capitalism works: extract the most money you can from everyone. Kind of like a vacation at Disneyland without the fun.

    Er, the government will apply an ill-thought-out and unfair tax, and you say that is how capitalism works? Don't you mean socialism?

  86. Govt = RIAA by Overzeetop · · Score: 1

    Hmmmm, this sounds familiar. An old powerful entity sees a shift in the marketplace which could damage current revenue streams. The fear of the loss of billions of unearned dollars sparks new legislation to make sure the money keeps flowing into the established machine.

    Is this the RIAA? Nope, its local and federal government realizing that there's more than one way to place a phone call now, and they don't have their hand in that pocket yet. They may even run afoul of the "no internet tax" laws they just passed (I have no I idea, I haven't read the legislation- I just assumed it was proposed so that unpopular amendments about 's could be added)

    The difference is that this time the injured party has the ability to actually write and pass laws (oh...right). Okay, so at least this time the money comes back to the populations, either as jobs, or pork, or both.

    Ahhhh, I love Mondays... a whole weekend of cynicism saved up and ready to pour forth.

    --
    Is it just my observation, or are there way too many stupid people in the world?
  87. How can you lose what you don't have? by f0rt0r · · Score: 1

    "The stakes in the debate are huge. Federal and state governments could lose billions of dollars in revenue from regulatory fees if calls moved onto the Internet are no longer subject to the charges."

    To lose a sale, revenue, etc., you have to have it first. As has been said on Slashdot a million times before ( after this post, a million and one :) ), no one is guaranteed a sale. Nobody(EN), nessuno(IT), personne(FR). So please talking about losing something you don't have, Mr. AT&T, RIAA, MPAA, and the rest of the businesses that think the public owes them a living.

    Thank You.

    --
    I can't afford a sig!
  88. FCC + internet = profit? by Quixadhal · · Score: 1

    Hmmm, what's that F in FCC stand for again? Ummmm, Fscked? No. Fancy? No. Futile? Nooo.... Ah! FEDERAL. As in non-global, non-international, and thus no power or influence outside the boundries of the United States.

    Now, the internet thingy.... that seems to be a global network that reaches places outside of the US.

    Now then, what was this about a US-Centric FCC attempt to regulate the content of my packet stream (which is just plain-old encrypted packets)?

    I thought so... go away and take your ball with you.

  89. The Rural Myth, Myth by Anonymous Coward · · Score: 0

    It is very obvious you live in a very sheltered world. When they say rural, they don't mean suburb rural. Out on the great plains there are farms that are 10 miles from even their closest neighbor and probably 25 to 50 miles from the closest town. (Ever drive through Nebraska or the Dakotas?).

    Getting phone service to these people is no small task and the costs can far exceed what the phone companies can recoup even in 30 years of billing these customers. Wireless isn't even an option. Sure, driving down I-80 you can probably get a signal on your Cel phone, but that is only because the wireless carriers have the corridor covered. Get more than 10 miles from the interstate and the signal quickly disappears. Sure, there is sattlelite, but given it's particular set of problems would you really want to depend on it if it was the only thing standing between you and utter isolation? ...especially if there was an emergency and you needed help?

    The only reason that there are wired phones there at all is because the government reached an agreement with AT&T for universal access.

    When wireless companies can offer reliable coverage over every square foot of the continental US, then you MIGHT have a point.

    For me personally, Cell phones are crap. I live within sight of an antenna, but yet have to go out on the front porch of my home to get enough signal to use my cell phone. Would you want to bet your life on that technology?

    1. Re:The Rural Myth, Myth by yintercept · · Score: 1

      Nebraska is flat...no mountains in the way, making it ideal for a few cell towers. For remote mountainous terrain, try central Idaho. I was thinking of places like Colbalt, Shoup or other truly isolated places outside Cobalt and Shoup. Regardless, if it costs $10,000 to get a line to your remote address, then what gives you the divine moral right to make other people pay for your service? The millionaires who own ranch land outside Stanley and expect cheap subsidized phone service to their summer home turn my stomache.

      Getting phone service to these people is no small task and the costs can far exceed what the phone companies can recoup even in 30 years of billing these customers.

      Sounds to me like the phone company needs to charge more in these areas...or perhaps there should be a cooperative where people buy the communication equipment, and provide the service that best fits the region. The subsidized phone lines have accomplished two things: It has redistributed money from people who are living more efficiently, and it stopped the evolution of alternative communication technologies.

      For example, if you can see the tower from your house, there should be an antenna on your house boosting the signal from the tower. If you need your cell phone on your 10,000 acre field, then you should have booster that broadcasts over your field.

      Let's say the phone company has spent an average of $10,000 a year to maintain your phone service. Is that really a good use of the money? If people in rural areas were investing their own money, they likely would have evolved a system that better suits the needs of the rural community. This thing where telecos get to take money from one group to spend on another encourages them to spend the money poorly.

  90. Toll Roads by nurb432 · · Score: 1

    All roads are Toll roads, just some are paid for via taxes, others are by direct payments at the 'booth'..

    But you still pay either way..

    And the few ( what is it, 9? ) states that dont have sales tax, make up for the revenue stream in a different manner. Its all just shuffled around to make people feel like they got a break..

    --
    ---- Booth was a patriot ----
  91. Slow by nurb432 · · Score: 1

    Seems you have missed making the same sort of useless comments on several other posts I've made lately..

    Are you slowing down ? I so much appreciate the help in catching my typos.

    --
    ---- Booth was a patriot ----
  92. Oh, my! by Fantastic+Lad · · Score: 2, Insightful
    Oh my!

    Modded into the ground for speaking the truth.

    I'll repeat my devastated post for those who would like to see it. . .

    I have only one thing to say. . .

    GREEDY BASTARDS.

    Oh, and. . .

    Are people 'terrorists' if they become sickened with corporate/government leeches? Of course not, but that won't stop the Powers That Be from getting nervous when the masses start to steam with indignation. This is the reason for the push to remove freedoms and create a police state; fear of reprisal from the masses who are getting hurt and bled worse every day. This, and nothing more. Anybody who believes otherwise is a chump.

    Now. . . Please, if somebody would like to actually disagree with this. . . I would love to hear their 'logic'. As I see it, there is no rational defense of the corporate/government desire to tax and bill the bejeezus out of people through needless charges and needless regulation. And anybody who believes that the 'terrorist' nonsense is actually what it is being sold as, is a damned, damned fool.

    But then I don't expect a whole lot of rational thought around here. Fear and Ignorance? Sure, but Rational Thought is a rare bird in these parts.

    Self-deluding Cowards afraid to look at the world objectively disgust me.


    -FL

  93. Internet phone calls vs. IP phone calls by rohanmahy · · Score: 1

    I think folks are getting confused about the difference between sending calls over some IP network vs. sending calls over the public Internet. In the US, the FCC has a bunch of regulations for a vertical-integrated service called "telephone service". The behavior, roles, requirements, taxation, etc. are described in great detail. Today, local and/or long-distance companies can and do carry phone calls over private IP networks, some of which are also used for Internet traffic as well. This is perfectly legal and does not change existing taxation rules in any way. In addition, PacketCable and others have extensive architectures which describe how to build a managed telephone service that runs natively on an IP network. In both cases, the whole network is managed in a manner consistent with the FCC definitions of a telephone service and taxed equivalently. Contrast this with a program on a PC that allows me to rendezvous with and send arbitrary data (which could be packetized audio) between users on the public Internet (like Skype). The FCC also has a tax on broadband access, but does not treat Skype as a telephony service. As folks have pointed out, it would be almost impossible to detect the difference between one such use of the Internet and any other. Finally there are services like Vonage which offer a rendezvous and telephone-network-gateway service on the public Internet. These services use a broadband Internet connection paid for separately by their users and not managed by the gateway provider, but they provide a dedicated PSTN telephone number and usually use small home gateways you can plug a telephone into. These are harder to classify since they can be configured to look/sound like a traditional telephone service to unsuspecting users. Here is where the regulatory battle is being fought. In addition to the taxation issue, there are public safety agencies who still want emergency services to work well in this environment, after the fiasco of cellular 911. (One proposal to satisfy these folks is to add an additional tax to broadband services to fund "Internet emergency services". Imagine paging 911 from your Blackberry) Hopefully this will provide some interesting grist for the mill... One last thing. I bristle a bit when folks talk about US telecom "deregulation". In the US, we went from having a two Incumbent Local Exchange Providers of any relevance (AT&T and GTE) to 8 (US West, Ameritech, SBC, PacBell, Bell South, Bell Atlantic, NYNEX, GTE) in 1986, to now 4 (Qwest, SBC, Bell South, and Verizon). AFAIK, telecom "deregulation" is really just "reregulation". Competition for traditional phone service is still effectively limited to very large companies. Real deregulation would allow for a proliferation of small companies and cooperatives to participate, and we are not there yet.

  94. Internet phone calls vs. IP phone calls (formated) by rohanmahy · · Score: 1

    (reposted as "plain text". apologies...)

    I think folks are getting confused about the difference between sending calls over some IP network vs. sending calls over the public Internet.

    In the US, the FCC has a bunch of regulations for a vertical-integrated service called "telephone service". The behavior, roles, requirements, taxation, etc. are described in great detail. Today, local and/or long-distance companies can and do carry phone calls over private IP networks, some of which are also used for Internet traffic as well. This is perfectly legal and does not change existing taxation rules in any way. In addition, PacketCable and others have extensive architectures which describe how to build a managed telephone service that runs natively on an IP network. In both cases, the whole network is managed in a manner consistent with the FCC definitions of a telephone service and taxed equivalently.

    Contrast this with a program on a PC that allows me to rendezvous with and send arbitrary data (which could be packetized audio) between users on the public Internet (like Skype). The FCC also has a tax on broadband access, but does not treat Skype as a telephony service. As folks have pointed out, it would be almost impossible to detect the difference between one such use of the Internet and any other.

    Finally there are services like Vonage which offer a rendezvous and telephone-network-gateway service on the public Internet. These services use a broadband Internet connection paid for separately by their users and not managed by the gateway provider, but they provide a dedicated PSTN telephone number and usually use small home gateways you can plug a telephone into. These are harder to classify since they can be configured to look/sound like a traditional telephone service to unsuspecting users. Here is where the regulatory battle is being fought.

    In addition to the taxation issue, there are public safety agencies who still want emergency services to work well in this environment, after the fiasco of cellular 911. (One proposal to satisfy these folks is to add an additional tax to broadband services to fund "Internet emergency services". Imagine paging 911 from your Blackberry)

    Hopefully this will provide some interesting grist for the mill...

    One last thing. I bristle a bit when folks talk about US telecom "deregulation". In the US, we went from having a two Incumbent Local Exchange Providers of any relevance (AT&T and GTE) to 8 (US West, Ameritech, SBC, PacBell, Bell South, Bell Atlantic, NYNEX, GTE) in 1986, to now 4 (Qwest, SBC, Bell South, and Verizon). AFAIK, telecom "deregulation" is really just "reregulation". Competition for traditional phone service is still effectively limited to very large companies. Real deregulation would allow for a proliferation of small companies and cooperatives to participate, and we are not there yet.

  95. Regulators, telcos should step carefully... by bthomasmo · · Score: 2, Interesting
    If anything has become clear to me over the past fifteen or so years, it is that most or all of the telecomm regulation should be tossed as soon as humanly possible. All such regulation was granted in exchange for monopoly status, which is no longer even possible; indeed, such regulations as UNE-P are actually delaying true competition, because neither the incumbents nor the competition have any incentive to build out their networks.

    With inner-city phone customers paying up to three times as much for basic service as their suburban neighbors, there is no sane argument remaining for the universal service fee structure.

    When some ISPs took advantage of the access-fee legislation to put up modem banks and realized ROIs in the 400-500% range, it became painfully obvious that regulating the industry was bound to continue to fail in its objectives due to ever-present unintended consequences.

    The most dramatic effect I can see coming out of regulating VoIP is hastening the demise of the public switched telephone network. Since the only value proposition offered by VoIP-as-service is quality guarantees and PSTN access, it will not be competitive with regular phone service any more, and bypassing the LD providers will continue to be possible by using direct IP-phone to IP-phone, which can't be regulated, carries no incremental cost to those already equipped with broadband access, and will continue to push PSTN rates up due to the loss of LD subsidies. The positive-feedback loop involved means that it is inevitable; we will see the trend accelerate as more standardization of protocols results in more network-effect value, more cheap phone devices equipped for direct Internet connection, and local phone service rates going up. Every one of these trends is already in progress and irreversible, and they all build on one another.

    I know by painful experience not to try to predict when these things will happen, but they will happen, and soon. If my predictions were accurate, it would already have happened five years ago. But the basic economic fact is that it costs orders-of-magnitude less to provide communications using a ubiquitous packet-switched network, and only government regulation can slow it significantly, and in the current case may actually accelerate it dramatically.

  96. Re:But provide *evidence*. by Technician · · Score: 1

    OK,

    A recent landline bill includes $12.50 for basic service. That's simple enough. Basic service.

    Now add on;
    Federal Charge Service Provider Number .43
    Federal Access Charge $5.00
    Fedral Universal Serv Fund .56
    Federal Excise at 3% .56
    City Occupation at %6 .75
    State 911 at $.20 per line .20
    Local 911 at $.50 per line .50
    TRS Excise Funds Federal ADA Requirement at $.14 per access line .14
    Telephone Assistance Program at .13 per access line .13

    That's .43 + 5.00 + .56 + .58 + .75 + .20 + .50 + .14 + .13 or a total of $8.29 per month added to a $12.50 bill. This is my direct taxes for the line.

    These are the directly billable to the consumer. These are easly shown. Not easy to see or show is how much QWest has to fork over that's rolled over into my $12.50 for the line. I assume they hit QWest with their share of taxes also.

    Later when I get more time, I may have to get into the investor relations website and see if I can find any of that other taxes QWest pays in the fincial statements.

    --
    The truth shall set you free!
  97. simple economics by potat0man · · Score: 1

    "...and the Federal Government stands to lose billions in revenue if they don't regulate it..." Not true. Rather, they could choose to not tax it and allow everyone to telecommunicate more efficiently resulting in monetary savings to each individual, business and the country as a whole. These untaxed savings will be used to expand businesses, invest, or buy Porches, all of which create jobs, grow the economy, increase the national and world GDP and make everyone richer. THEN they can grab a bigger chunk of everyone's income.

  98. b1tches by H3xx · · Score: 1

    I'm from Minnesota and the b1tches love me and Minnesota for this.

    --
    "Ubuntu" - an African word meaning "Slackware is too hard for me."
  99. Re:But provide *evidence*. by Abcd1234 · · Score: 1

    Thanks! That was actually quite interesting... However, do note that that $5.00 Federal Access Charge is *not* federal tax, and does not end up in the government coffers. See here. So, the direct tax is actually $3.29 per month which, while still a lot, is nowhere near 2/3rds of the bill. Although, as you say, there may be hidden taxes in there.

  100. "... could lose billions of dollars in revenue"? by Alphtoo · · Score: 1

    Federal and State governments need to learn that 'revenue' is not theirs to lose, it's ours. I don't want to take anything away from government; I just don't want us all to have to pay for an outdated system.