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ComparativeTelecommunications Law

Spring, 2007Prof. Karl Manheim

13: VoIP

Copyright 2007

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Spring 2007 CTL2

Basics of Internet TelephonyDifferent network than the PSTN

May use some of same physical infrastructurePSTN is circuit-switched; Internet is packet-switched

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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 dataReverse process at destination computerResilient VoIP problems

LatencyEchoDTMF propagation

FCC website on IP-enabled services

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Spring 2007 CTL4

VoIP Technology Voice POTS telephonyIn an end-to-end world,applications aredefined at the edgesInnovation happens

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Spring 2007 CTL5

VoIP Business Applications

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Spring 2007 CTL7

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Spring 2007 CTL8

VoIP EconomicsInternet telephony bypasses telcos,

No interconnection obligationsException: 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 telcosTelcos demand compensation from ISPsTelcos urge regulation/licensing of VoIPSpecial problem where telco is state-owned

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Spring 2007 CTL9

VoIP RegulationRegulatory issues generally < FCC fact sheet >

Internet not under NRA jurisdiction Advent of unregulated services, displacing regulatedones, is disruptive; may spur general deregulation

VoIP defies national boundariesUsers are nomadic whenever on Internet

Numbering (E.164 -> ENUM)

t Elephone NUmber Mapping; number portabilityEmergency geolocation (911 / 112)Universal ServiceLaw Enforcement Access/Interception

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Spring 2007 CTL10

VoIP Regulation in USPulver.com Free World Dialup (2004)

C-C VoIP isNot telecommunications

VoIP is merely an application (such as a browser, email)Not a transmission service

Not a telecommunications service VoIP providers don t offer telecommunicationsNo common carrier obligations

An information servicecapability for generating, acquiring, storing, transforming,processing, retrieving, utilizing info via telecommunications

Therefore, not regulated by Comm ns Act.

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Spring 2007 CTL11

VoIP Regulation in USNPRM: IP-Enabled Services (3/10/2004)

Focus on VoIPOffered by telcos and facilities-based telecom cos.

Also by Session Initiated Protocol ( SIP) providersSignaling (ring) used by VoIP, video-conferencing, etc.

Beyond VoIPTTY, 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

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Spring 2007 CTL12

VoIP Regulation in USOrder re AT&T Access Charges (4/21/2004)

AT&T uses Internet to route interexchange callsLEC -> VoIP -> LEC

Bypasses IXC and IXC obligation to compensatedestination LEC to terminate calls, but otherwiselooks identical to wireline telephony (incl. CPE)So-called Phone-to-Phone

No reason to treat termination any differently AT&T must pay access chargesOrder doesn t apply to Computer-to-Computer VoIP

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Spring 2007 CTL13

VoIP Regulation in USOrder in Vonage VoIP Services (11/9/2004)

LECs normally subject to state PUC regulationJoint State Federal Board & Separation requirements

C-C VoIP bypasses LECs; therefore not subject to state regulationE.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

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Spring 2007 CTL14

VoIP Regulation in USE911 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

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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; interoperabilityNo, 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 TelephoneService (PATS) in UK - V oice over Broadband ( V oB)

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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 casesEC approves ARCEP (FR) decision not to imposeex ante regulation on VoB (2005) < link>

Robust competition; FPTN elements regulated

EC approves BNetzA (DE) decision to impose exante regulation on VDSL (very high speedbroadband) < link>

May affect market for VoIP and VoB services

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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 VoIPSingapore

Info-Communications Development Auth. (IDA)Interconnection req d; reg. forbearance; no E911

KoreaMinistry of Information & Communications (MCI)

Treatment/regulation as basic telephony service

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Spring 2007 CTL19

VoIP Regulation - other countriesCanada

Can. Radiotelevision & Telecom C mm n (CRTC)IP services using PSTN/telephone numbers aresubject 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>