VoIP's CHOKING HAZARD

Most parents are likely familiar with the warnings on toy labels: “Not intended for children under 3,” or “Suitable for ages 3 and up.” But what's the significance of the 3-year-old cutoff? As it turns out, substantial consumer and safety research has determined the age at which children's airways reach a size that will prevent choking. That research resulted in unambiguous regulations about warning labels.

The nascent voice-over-IP industry should be so lucky. Research on the subject of whether the VoIP industry requires regulation is nowhere near as clear as research on the correlation between choking and airway size.

In 1999, when my team formed TalkingNets, an all-IP CLEC, the regulatory issue regarding VoIP was as clear as mud. Was VoIP a value-added data service and therefore free from regulation, or was it another method for delivering voice services and therefore subject to regulation by state PUCs?

Given its recent notice of proposed rulemaking regarding VoIP, the FCC appears to have recognized that voice is now an application that can ride within an all-IP data network. What's not clear is how to apply rules and fees — created when voice was the primary service running on today's TDM network — to VoIP applications and service providers.

In order not to slow the creativity of emerging services and providers, the FCC must provide clarity in whatever rules it makes. The following points must be considered during this debate:

• The public interest, new services, competition and choice all come first, not the interests of the incumbents.
• Fees should not be added to VoIP just because it is voice. Fees should be collected only if traffic traverses the public network.
• The safety of the consumer is primary, as is education.
• Not all VoIP-based services are the same, nor are they just like primary line POTS (yet).
• A broad user base must be supported, which means universal service and availability can't be overlooked.

During the telecom bubble of the late 1990s, investor money and regulation drove activity, and technology needed to drive advances in areas such as VoIP was not always ready. But VoIP technology is ready now. If the FCC acts to provide guidance and clarity this year, more investment will follow and consumers will be the ultimate winners. Failure to act clearly and concisely will choke the potential of VoIP.

DOSSIER TONY SURAK

Occupation: Senior director of Newforth Partners, an M&A advisory firm for technology companies; co-founder of TalkingNets

Location: Rockville, Md.

Favorite Web site: www.theonion.com

Current reading: “Right as Rain” by George P. Pelecanos

Hobbies: Golf, blues and trapping

Next Project: Building a patio on the back of my house