NETWORK WORLD NEWSLETTER: STEVE TAYLOR AND LARRY HETTICK ON 
CONVERGENCE
11/15/04
Today's focus:  Key points of FCC's Vonage ruling

Dear [EMAIL PROTECTED],

In this issue:

* Analysis of FCC ruling on Vonage and VoIP
* Links related to Convergence
* Featured reader resource
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Today's focus:  Key points of FCC's Vonage ruling

By Steve Taylor and Larry Hettick

You doubtlessly heard last week that the FCC ruled that Vonage's 
residential-focused VoIP service is not subject to, as the 
ruling put it, "traditional state regulation." The FCC press 
release also noted that "other types of IP-enabled services, 
such as those offered by cable companies, that have basic 
characteristics similar to [Vonage's] DigitalVoice would also 
not be subject to traditional state public utility regulation."

This seems to us to be a sane ruling, especially as one digs 
more deeply into reports of what the ruling does - and does not 
- cover.

In particular, the key point from the ruling seems to focus on 
E-911 regulations. As we've discussed extensively in this 
newsletter, one of the most difficult parts of even determining 
whether a given VoIP system is compliant with E-911 regulations 
is that many of these regulations vary significantly from state 
to state.

This point seems to be especially important to Commissioner 
Abernathy, who in a separate statement expressed concern over 
"the prospect of subjecting providers of these innovative new 
services - which are being rolled out on a regional, national, 
and even global scale - to a patchwork of inconsistent state 
regulations."

We hope this is a major step toward sane regulation. VoIP is an 
excellent example of a widespread problem: A great deal of the 
current legislation concerning technology was conceived (or, 
depending on your perspective, ill-conceived) based on 
technological concepts that are no longer meaningful.

For instance, E-911 legislation is generally based on the 
concept, which was sound logic a few years ago, that a 
"telephone" is in a fixed location. Clearly, this is no longer 
the case. With most Internet-based VoIP services, there is 
essentially no connection between the physical location and the 
"calling number." Indeed, as the FCC press release states, 
"DigitalVoice customers can use their phones from a broadband 
connection anywhere in the world, making it difficult to 
determine whether a call is local, interstate or international 
in nature."

We see the recent ruling as the tip of the coming iceberg. In 
particular, the list of issues, including taxation, that are 
explicitly excluded from this ruling is far-ranging. 
Nevertheless, it's an important indicator of probable future 
directions. 

RELATED EDITORIAL LINKS

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

Residential VoIP? Check the E-911 capabilities
Network World Convergence Newsletter, 08/02/04
http://www.nwfusion.com/nlconvergence829

More on limitations of E-911 for residential VoIP
Network World Convergence Newsletter, 08/04/04
http://www.nwfusion.com/nlconvergence830

The Extended Enterprise Issue
Network World, 11/15/04
http://www.nwfusion.com/ee/2004/
_______________________________________________________________
To contact: Steve Taylor and Larry Hettick

Steve Taylor is President of Distributed Networking Associates 
and Publisher/Editor-in-Chief of Webtorials.Com. For more 
detailed information on most of the topics discussed in this 
newsletter, connect to Webtorials.Com 
<http://www.webtorials.com/>, the first Web site dedicated 
exclusively to market studies and technology tutorials in the 
Broadband Packet areas of Frame Relay, ATM, and IP.  He can be 
reached at <mailto:[EMAIL PROTECTED]> 

Larry Hettick an industry veteran with over 20 years of 
experience in voice and data.  He is currently Vice President 
for Wireline Solutions at Current Analysis, the leading 
competitive response solutions company. He can be reached at 
<mailto:[EMAIL PROTECTED]> 
_______________________________________________________________
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ARCHIVE LINKS

Archives of the Convergence newsletter: 
http://www.nwfusion.com/newsletters/converg/index.html
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