IP Convergence: Beyond VoIP, Beyond Cost Savings

I had the opportunity to speak Friday at a conference hosted by the law firm of Paul Hastings, Janofsky & Walker, LLP. The focus of the conference was emerging markets and the countries Brazil, Russia, India and China (“BRIC” countries). I enjoy small conferences like this because you get a freer exchange of ideas than some of the bigger conferences. The panel I was on concerned legal and regulatory entry barriers in the BRIC countries.

Because there was a representative from the U.S. State Department and the U.S. Trade Representative’s (“USTR”) offices, I felt compelled to point out how the United States’ own policies compare to those of the BRIC countries. So, I noted that the U.S. maintains foreign ownership restrictions like China and India do (Russia and Brazil do not). I noted that Brazil only charges a 1.5% tax for universal service whereas the United States charges 10%. I noted that the United States imposes unique obligations on foreign-owned and operated carriers like India does. And I noted that many of the problems that plague regulators in India, Brazil and China plague the FCC as well. The uncertainty and inconsistency of decision-making is not unique to the BRIC countries. The fact that the FCC has sat on inter-carrier compensation reform for over five years is testimony to that.

The job of the State Department and USTR is made all the harder by the fact that the United States practices much of what it preaches against overseas. Those who live in glass houses…