IP Convergence: Beyond VoIP, Beyond Cost Savings

The FCC released its Notice of Proposed Rulemaking(“NPRM”)  concerning its assessment and collection of regulatory fees for 2007.  This is an annual ritual whereby the FCC explains its methodology for taxing the industry to cover a majority of its operating budget.   Interestingly enough, this year the FCC proposes to assess interconnected VoIP providers.  This means VoIP providers will be taxed to support the FCC’s regulatory mission. 

So much for approaching VoiP with a “light regulatory touch”.  For those of you keeping score at home, the FCC’s light touch includes –

1.            taxing VoIP providers to support the FCC’s regulatory mission
2.            taxing VoIP providers to support universal service
3.            requiring VoIP providers to support emergency services dispatch on an enhanced basis ( “E911”)
4.            requiring VoIP providers to configure their network and services to support law enforcement efforts (“CALEA”)

Pretty much the only area where the FCC has applied a truly light touch is with regards to the rights and privileges of VoIP providers.  In March 2004, the FCC released an NPRM to address in a “comprehensive manner” the regulatory treatment of VoIP providers.  On the table at that time were issues of interconnection and inter-carrier compensation, two very important rights for VoIP providers.  Three years later no action has been taken in that docket.  You can’t get any lighter than that. 

Granted, it was naïve to think that VoIP providers would escape regulation and taxation.  But the gap between rhetoric and reality is becoming quite galling.