NETWORK WORLD NEWSLETTER: JIM DUFFY WITH VIEW FROM THE EDGE
11/16/04
Today's focus:  A Beginning, Not an End

Dear [EMAIL PROTECTED],

In this issue:

* More work needed to define regulatory framework for broadband 
��IP services
* Links related to View from The Edge
* Featured reader resource
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Today's focus:  A Beginning, Not an End

By Jim Duffy

The FCC's decision last week to exempt VoIP from state 
regulation is heralded as a watershed ruling by some, but it is 
only the first step in defining policy for broadband IP 
services.

Indeed, what last week's ruling does not define is whether VoIP 
is a telecom or unregulated information service. That matter 
will be hashed over in another FCC proceeding that began earlier 
this year.

What the FCC did determine last week was that a VoIP service 
offered by Vonage Holdings is interstate in nature and, 
therefore, not subject to the public utility regulations of 
individual U.S. states. Vonage's DigitalVoice service can't be 
governed by dual state and federal rules because it can't 
practically be separated into intrastate and interstate 
components.

The FCC opinion extends to other similar services, such as those 
offered by cable operators. Looser regulations usually translate 
into increased investment in those services and the equipment to 
provide them, which means enterprise customers will have more to 
choose from and compare on price.

But the ruling was widely expected. It's no secret that FCC 
Commissioner Michael Powell favors a light regulatory touch on 
new broadband services such as VoIP in order to stimulate 
investment, customer choice and competition.

Some, however, believe the FCC's ruling is the first - not the 
last - word regarding VoIP and broadband IP service policy. 
There's still much work to be done, and the industry should not 
overreact to a single ruling on a single service from a single 
provider.

The telecom/information service decision will determine if VoIP 
providers will be subject to access charges and be required to 
contribute to the universal service fund. Also, the FCC ruling 
did not address public safety issues, namely the requirement for 
911 emergency services over the VoIP service.

The FCC said those issues will be dealt with in the larger 
IP-Enabled services proceeding, which began in February.

Vonage had petitioned the FCC to preempt a 2003 order by the 
Minnesota Public Utilities Commission that said DigitalVoice 
should be regulated like a traditional telecommunications 
service. The rules required Vonage to get a certificate of 
authority from the state, provide emergency 911 service and meet 
other requirements.

The rules Minnesota would have imposed were inconsistent with 
the FCC's deregulatory policies, the agency said.

States still have a role to play with VoIP in protecting 
consumers from fraud, responding to complaints and enforcing 
fair business practices, the FCC said.

RELATED EDITORIAL LINKS

FCC frees VoIP service from state regulation
IDG News Service, 11/09/04
http://www.nwfusion.com/news/2004/1109fccfrees.html

More VoIP issues bubbling up
Network World, 02/09/04
http://www.nwfusion.com/news/2004/0209voipreg.html

Convergence research center
Network World
http://www.nwfusion.com/topics/convergence.html
_______________________________________________________________
To contact: Jim Duffy

Jim Duffy is managing editor of Network World's service provider 
equipment coverage <http://www.nwfusion.com/edge/>. He has 18 
years of high-tech reporting experience, including over 12 years 
at Network World. Previously, he was senior editor at Computer 
Systems News and associate editor/reporter at Electronic News 
and MIS Week. He can be reached at <mailto:[EMAIL PROTECTED]>.
_______________________________________________________________
This newsletter is sponsored by Intel 
IT Productivity; Increasing ROI 

Learn how to effectively measure employee productivity, manage 
IT investments and reduce the Total Cost of Ownership in 
enterprise data management.  Visit Intel's IT Productivity 
center.  Click here to download white papers, books and IDC 
Research. 
http://www.fattail.com/redir/redirect.asp?CID=88373
_______________________________________________________________
ARCHIVE LINKS

Archive of the View from the Edge columns:
http://www.nwfusion.com/edge/columnists/index.html
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Security is no longer about simply keeping the bad guys out 

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the application layer.  
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