Voice over Internet Protocol

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>