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FCC Decides Against Regulation of VoIP But Decides to Regulate Provision of Internet Access by Public Utilities

In a split (4 to 1) decision, the United States Federal Communications Commission (the "FCC") has decided to exempt Internet phone-call providers from the cumbersome regulatory regime of conventional telephone networks. The FCC has taken the position that such services are similar to email and other peer-to-peer applications on the Internet and as such should not be heavily regulated. This decision came about as a result of a request from Pulver.com, a voice over the Internet Protocol (VoIP) provider, to be immune from being regulated as a conventional telephone network. It should be noted that this decision does not address the issue of whether telecom regulations apply to VoIP services that interconnect with the conventional telephone system. Accordingly, this decision only applies to those companies such as Pulver, which offer software and/or services that provide for telephone connections using solely the Internet, but not between computers and ordinary telephones.

In dissent, Michael J. Copps stated that the decision makes it easier for incumbent phone companies to escape regulation and sets the agency on a course of effectively rewriting the U.S. Telecommunications Act of 1996. He also criticized the decision in light of the concerns of law enforcement agencies about legal and technical problems of monitoring phone calls utilizing VoIP.

The FCC has also started draft regulations to allow access to the Internet through electric power lines operated by utility companies. These rules would allow users to get Internet connection by simply plugging their modems into electric wall sockets instead of having to go through cable or phone companies.

For more information visit:
http://news.com.com/2100-7352_3-5158105.html
http://www.nytimes.com/2004/02/12/technology/12CND-NET.html
http://www.siliconvalley.com/mld/siliconvalley/news/editorial/7939332.htm
http://www.latimes.com/technology/la-fi-voip12feb12,1,250598.story