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Comparative Telecommunications Law
Spring, 2007Prof. Karl Manheim
13: VoIP
Copyright © 2007
Spring 2007 CTL2
Basics of Internet Telephony
Different network than the PSTN May use some of same physical
infrastructure PSTN is circuit-switched; Internet is packet-
switched
Spring 2007 CTL3
VoIP TechnologyPacket Switching Analog voice signal converted to digital
signal, which is then divided into data “packets”
Packets are sent over Internet like other data Reverse process at destination computer
Resilient VoIP problems Latency Echo DTMF propagation
FCC website on IP-enabled services
Spring 2007 CTL4
VoIP TechnologyVoice ≠ POTS telephonyIn an end-to-end world, applications are defined at the edgesInnovation happens
Spring 2007 CTL5
VoIP Business Applications
Spring 2007 CTL6
VoIP TechnologyIP Applications All Internet traffic is TCP/IP
Transmission Control Protocol/Internet Protocol Established by IETF (ITU?)
Benefits of IP Use of existing open networks @ lower cost Scalable; efficient Limitless variety of applications Geographic independence
Skype C-C (free) C-PSTN (traffic-sensitive fee) PSTN-C (nts)
Spring 2007 CTL7
Spring 2007 CTL8
VoIP EconomicsInternet telephony bypasses telcos, No interconnection obligations
Exception: VoIP call from or to standard telephone (e.g., “Computer-to-Phone”, “Phone-to-Phone”)
Termination charges apply No Universal Service surcharges (until
recently)
Competitive pressure on telcos Telcos demand compensation from ISPs Telcos urge regulation/licensing of VoIP Special problem where telco is state-owned
Spring 2007 CTL9
VoIP RegulationRegulatory issues generally <FCC fact sheet> Internet not under NRA jurisdiction
Advent of unregulated services, displacing regulated ones, is disruptive; may spur general deregulation
VoIP defies national boundaries Users are “nomadic” whenever on Internet
Numbering (E.164 -> ENUM) tElephone NUmber Mapping; number portability
Emergency geolocation (911 / 112) Universal Service Law Enforcement Access/Interception
Spring 2007 CTL10
VoIP Regulation in USPulver.com Free World Dialup (2004) C-C VoIP is
Not telecommunications VoIP is merely an application (such as a browser, email) Not a transmission service
Not a telecommunications service VoIP providers don’t offer telecommunications No common carrier obligations
An information service capability for generating, acquiring, storing,
transforming, processing, retrieving, utilizing info via telecommunications
Therefore, not regulated by Comm’ns Act.
Spring 2007 CTL11
VoIP Regulation in USNPRM: IP-Enabled Services (3/10/2004) Focus on VoIP
Offered by telcos and facilities-based telecom cos. Also by Session Initiated Protocol (SIP) providers
Signaling (ring) used by VoIP, video-conferencing, etc. Beyond VoIP
TTY, VPN, IPTV, VOD, (VoIP Summit – 5/7/2004)
First Report and Order (6/3/2005) Limited to E911 service; Wiretap functionality
Telecom Act of 2005/06 (pending) Local number portability; Univ.Svc. funding
Spring 2007 CTL12
VoIP Regulation in USOrder re AT&T Access Charges (4/21/2004) AT&T uses Internet to route interexchange calls
LEC -> VoIP -> LEC Bypasses IXC and IXC obligation to compensate
destination LEC to terminate calls, but otherwise looks identical to wireline telephony (incl. CPE)
So-called “Phone-to-Phone” No reason to treat termination any differently
AT&T must pay access charges Order doesn’t apply to Computer-to-Computer VoIP
Spring 2007 CTL13
VoIP Regulation in USOrder in Vonage VoIP Services (11/9/2004) LECs normally subject to state PUC regulation
Joint State Federal Board & Separation requirements C-C VoIP bypasses LECs; therefore not subject
to state regulation E.g., E911 services
Order in Time-Warner Cable (1 Mar 2007) Wholesale Comm’n Carrier providing VoIP
Entitled to ILEC interconnection per § 251(a)(b) Intercon’n to PSTN needed for full VoIP deployment
Number portability and resources
Spring 2007 CTL14
VoIP Regulation in US
E911 Services Interconnected VoIP E911 order (6/3/05)
<link> Joint FCC/NARUC Task Force (July 2005) IVoIP compliance required by 11/28/06 <
link> Appeal pending before DC Court of Appeals
Spring 2007 CTL15
VoIP Regulation in EUEC v. Italy (ECJ 2000) Does Open Networks Provision apply to VoIP?
ONP: Council Directive 90/387/EEC Open Access; standards; interoperability
No, VoIP is not a voice telephony service
VoIP under Telecoms Package (2002) Telecom should be technology neutral
No licensing of VoIP (Authorization Directive) But many FPTN obligations apply
E.g., if VoIP is marketed as a Publicly Available Telephone Service (PATS) in UK - Voice over Broadband (VoB)
Spring 2007 CTL16
VoIP Regulation in EUDGIS Consultation Document (14 June 2004) Application of Telecom. Framework Directives
NRA authorization not required for Electronic Communications Services (Internet services)
Commission takes “light touch” reg. approach VoIP contributes to creation of single European mkt VoIP providers may be able to compete with PATS
Still investigating impact on telephony markets
Current Issues <EU fact sheet> Numbering/portability; emergency svcs; Un.Svc
See European Regulators’ Group white paper
Spring 2007 CTL17
VoIP Regulation in EURecent Developments Differentiation between VoB and VoIP
VoB: as a replacement for standard telephony Subject to ex ante regulation in appropriate cases
EC approves ARCEP (FR) decision not to impose ex ante regulation on VoB (2005) <link> Robust competition; FPTN elements regulated
EC approves BNetzA (DE) decision to impose ex ante regulation on VDSL (very high speed broadband) <link> May affect market for VoIP and VoB services
Spring 2007 CTL18
VoIP Regulation in AsiaChina Ministry of Information Industry (MII)
Not regulated, at least if bypasses PSTN Very competitive; many calling cards use VoIP
Singapore Info-Communications Development Auth. (IDA)
Interconnection req’d; reg. forbearance; no E911
Korea Ministry of Information & Communications (MCI)
Treatment/regulation as basic telephony service
Spring 2007 CTL19
VoIP Regulation - other countries
Canada Can. Radiotelevision & Telecom C’mm’n
(CRTC) IP services using PSTN/telephone numbers are
subject to PSTN regulation
Mexico VoIP treated same as voice telephony
UK Office of Communications (OFCOM)
Reg. forbearance, access to number pool, no E911
Other Countries <link>