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Implications of VoIP

TC 310 May 28, 2008. Implications of VoIP. Questions from Reviews. Duty to Interconnect Reciprocal compensation Line of business v statutory line of business UNE-P v UNE-L Which is best, ISP, Net Neutral, Physical Bell break up effective? Regulate Internet? Authority?. Why VoIP matters.

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Implications of VoIP

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  1. TC 310 May 28, 2008 Implications of VoIP

  2. Questions from Reviews • Duty to Interconnect • Reciprocal compensation • Line of business v statutory line of business • UNE-P v UNE-L • Which is best, ISP, Net Neutral, Physical • Bell break up effective? • Regulate Internet? Authority?

  3. Why VoIP matters • Broadband capacity makes viable • Undercuts PSTN access/toll charges • Voice dominated by cable? • “Triple Play” • Physical layer leverage • Bye bye Vonage • Asking to be regulated

  4. Why Regulate? • 1996 Act mandates competition • Internet untouchable • Why VoIP breaks this • Telecommunication Service • Information Service • Regulation helps build infrastructure

  5. IP-to-IP VoIP • Voice calls to other IP users only • Pulver's Free World Dialup • Basic Skype • FCC Preemption and Forbearance • Computer III Legacy • Geography concerns • Can't tell where even if wanted • Difficult to regulate

  6. PSTN-to-PSTN • VoIP for transmission only • Originates/terminates on PSTN • For LD, translated into packets • Prioritized over backbone • Customers do not know • AT&T asks for access charge exemption because using Internet • FCC rules is telecommunication service • No application change or new service

  7. IP-to-PSTN • Customer has own broadband connection • Can reach and be reached by anyone within PSTN network • Actual substitution for traditional service • Causes real regulatory concern • Information v Telecommunication service • Vonage files FCC petition to remain information service

  8. Basics of IP-to-PSTN • Conventional Phone to adapter • Adapter to Broadband • Call same service subscriber IP-to-IP • Call PSTN, terminates at PSTN • Associate with area code, can do so with multiple numbers • Only so many numbers! • Cross-subsidizations • Infrastructure

  9. Jurisdiction Concerns • IP-to-PSTN federal or shared? • IP-to-IP too difficult to tell • PSTN well established • Minnesota PUC • Demands Vonage file tariffs, etc. • FCC rules it is impossible to bifurcate, therefore preempts States – Vonage Order

  10. Classification • Information or Telecommunication? • Title II v. Title I • Vonage wants Title I • PSTN industry wants Title II • Vonage Order does not state, but implies, information • Easier when VoIP does more than voice • Translation, text conversion, replay

  11. Congressional Action • Seeking to help FCC with jurisdiction and classification • IP-Enabled Voice Communications and Public Safety Act of 2007 • Bill before both houses, different versions • FCC Jurisdiction • VoIP as information Service • Voice will need 911, USF, Compensation to PSTN

  12. FCC Action • Deregulation • Preemption and Forbearance again • IP-to-PSTN is Title I, but if told Title II can forbear • States want to regulate, FCC says no • Regulation • Title I ancillary authority back door power • 911 requirements- similar but different • Communications Assistance in Law Enforcement Act (CALEA) requirements

  13. Continuing Problems • Proposed legislation and actions of FCC are still “hindered” by legacy classifications • Title based on technology, not service • Not designed for convergence • Everyone wants to be Title I • Horizontal regulation potential to get beyond this, but we are far from that

  14. Importance • Reevaluate regulation of PSTN • Creative Destruction as reasonable? • Complications of Convergence • Getting social good out of competition • Title system in jeopardy • Emergence of Cable as dominant • Monopoly concerns

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