Freeing VoIP, one packet at a time

The tide may be turning quickly toward a far less regulated approach to voice over IP services than this industry has ever had for any other telecom application, but that doesn't necessarily mean that the regulatory powers that be are going about the process in the most efficient or logical way.

This week's FCC ruling that VoIP traffic from service provider Vonage is interstate in nature and therefore not subject to state regulation is, on the surface, a win for purveyors of VoIP. But even as it tries to steer around the pitfalls of the regulatory past, the commission is taking a piecemeal approach to VoIP regulation that could result in yet another regulatory quagmire. Ironically, the FCC could end up stifling the spread of VoIP--at least temporarily--by doing too much in its efforts to regulate less.

VoIP supporters are understandably applauding the Vonage ruling. But given that contingent's rapidly escalating lobbying muscle, it seems the interests of the VoIP community would be better served if that group would use its clout to implore the FCC to take a more cohesive approach to VoIP regulation. It's not: In its efforts to get its concerns addressed and ruled on as quickly as possible, that VoIP lobbying muscle seems to be actually contributing to the creation of a patchwork of VoIP regulations--even as it warns us of the danger of that exact phenomenon occurring.

Excluding state oversight carrier by carrier--and not addressing issues like universal service and intercarrier compensation in the process--can't possibly be the most efficient way to set a firm course for an obviously important new technology and service. FCC Commissioner Michael Copps put it best when he said, after this week's ruling, that "...the commission moves bit-by-bit through individual company petitions, in effect checking off business plans as they walk through the door."

For once, let them set aside the vague language (e.g., "IP-enabled"). Let them thoroughly examine all the critical financial, competitive and even fairness issues. Let them take a comprehensive look at all kinds of VoIP business approaches, compare and contrast them and consider what competitors they truly affect. Then, after all that is understood, let them make an informed and universal decision about where VoIP fits in the telecom industry's regulatory framework. Anything short of that would do a disservice to the potential of VoIP.

E-mail me at jmeyers@primediabusiness.com.