The regulation of Voice-Over-Internet-Protocol in the United States, the European Union, and the United Kingdom.

The Journal of High Technology LawVol. 5 Nbr. 2, July 2005

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The regulation of Voice-Over-Internet-Protocol in the United States, the European Union, and the United Kingdom.

ABSTRACT

The objectives of this study are to: (1) define Voice-Over-Internet-Protocol ("VoIP"), its typology, and switching characteristics; (2) present, in some detail, U.S. VoIP law and policy and the major issues surrounding it; (3) briefly cover the highpoints of E.U. and U.K. VoIP regulation and compare it to that of the U.S.; and (4) draw conclusions pertaining to the future development of VoIP law and policy.

VoIP is a technology allowing the user to make telephone calls over the Internet. In the U.S., the Federal Communications Commission ("FCC") is presently engaged in rulemaking pertaining to many VoIP-related issues: jurisdiction, regulatory criteria, whether to maintain a bias toward non-regulation, rate of substitution, degree of divergence in rules for different classes of firms, recent innovations, disability access, provision of "911" services, access charges, universal service charges, consumer protection, economic regulation, wireless-based service, cable-based service, rural service, and law enforcement surveillance. On November 9, 2004, the FCC ruled that it has jurisdiction to regulate VoIP, not state public utility commissions.

After VoIP-regulation in the European Union and in the United Kingdom is concisely covered, a comparison is made among the U.S., E.U., and U.K. In all three, VoIP has enjoyed the luxury of being virtually unregulated; this deliberate bias by the respective regulatory bodies in favor of non-regulation has been made in order to foster its growth. Looking to the future, however, the three regulatory bodies agree on this point: As VoIP service continues to improve and becomes a viable substitute for traditional telephone service, the greater the likelihood that VoIP regulation will increase.

TABLE OF CONTENTS I. OBJECTIVES OF THE STUDY 164 II. WHAT IS VoIP? 64 Four Types of VoIP Calling 165 Computer-to-Computer Computer-to-Telephone Telephone-to-Computer Telephone-to-Telephone Circuit-Switching vs. Packet-Switching 165 III. VoIP LAW AND POLICY: THE UNITED STATES 166 VoIP: An "Information Service" 166 VoIP: Doesn't Contribute to Universal Service Fund 167 VoIP: Doesn't Pay Access Charges 168 The Unsuccessful "VoIP Regulatory Freedom Act of 2004" 169 The FCC's Present Rulemaking on VoIP 169 Regulatory Criteria Bias Toward Non-Regula...

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