BellSouth pleased with Powell's VoIP stance

FCC Chairman Michael Powell encouraged at least one RBOC representative this week by stating his position on voice-over-IP technology in manner that could portend opposition to an AT&T request to be exempt from paying access charges on much of its long-distance traffic.

In a speech delivered to the National Press Club, Powell said VoIP—or “Internet voice”—is a “voice application that runs over the Internet” and affords users the opportunity to enjoy enhanced functionality beyond that which is available via traditional, circuit-switched telephony.

The enhancement distinction could prove to be critical in Powell’s eventual position on an AT&T petition, which asks the FCC for a declaratory ruling that would exempt the long-distance giant from paying ILECs access charges on calls from one circuit-switched network to another, if AT&T converts the signal to IP on its long-distance network.

Because VoIP calls are largely unregulated, AT&T would not have to pay $8 billion in annual access charges to ILECs if the FCC rules that an IP conversion constituts a VoIP call. The declaratory ruling petition has been roundly criticized by RBOC representatives, with Qwest senior vice president for policy Steve Davis describing AT&T’s proposal as a “scam.”

However, if Powell’s indication that VoIP include the opportunity for enhanced functionality becomes the test adopted by a majority of the commission, it would prevent AT&T from receiving the regulatory protection afforded VoIP, according to Herschel Abbott, BellSouth’s vice president of governmental affairs.

“What AT&T is pitching to the FCC is traditional switched telephony service that uses the same local facilities in the same way,” Abbott said in a prepared statement. “It doesn’t offer any of the next-generation functionalities to consumers that are the hallmark of VOIP, as recognized by Chairman Powell.”

AT&T disagreed with Abbott’s interpretation of the FCC chairman’s VoIP description, noting that Powell never addressed its petition directly during his speech.

“Clearly, Chairman Powell’s speech was designed to create an environment that encourages investment in IP technology, and to move voice telephony from traditional circuit-based TDM networks,” AT&T spokeswoman Claudia Jones said in a prepared statement. “That’s exactly the process that AT&T has begun. This is truly new investment that should not be thrown into the Bells' old inflated access rules bucket.”