:  FYI: At a recent Senate Commerce hearing on VoIP it was recommended
: that the audience read this article that appeared in the Wall Street
: Journal that morning. --Wendy

:  VOIP of the People
:  By JOHN SUNUNU


Hello Everyone,

I don't think he understands the nature of the internet.  Especially
the global aspect of it.  Will they take control over every international
circuit of every NSP (Network Service Provider) and ISP that has one?  I
used to work for a NSP company called Digital Island before the techstock
bubble burst and we had a network that went into 37 countries with
international T3s and OC-Ns everywhere, literally.  How would he have the
traffic monitored for specific data packets at those rates?  (remember
*VoIP IS DATA* like email, web or any other traffic on a circuit) I ask,
because international voice traffic has to be treated differently than
domestic.  For example, if a VoIP call is placed from London to Bejing and
the traffic crosses an OC-12 that is in any part of the US, would we need
to pay for the tariffs?  Would foreign and domestic companies be treated
any different for traffic that terminates, or just crosses, the US?  How
about multinational companies?  What about coropations that have VoIP
traffic which terminates only within corporate offices and travels across
the company owned lines.  Do they get charged the taxes?

Now take the domestic problem.  How do you log, for example, an OC-192 for
certain types of traffic, especially one that's as delay sensitive as
voice?  You don't.

Multiply that problem times tens and hundreds of thousands of ISPs and you
begin to see the magnitude of the issue. Would they somehow allow each ISP
recoup the money lost to monitoring for the specific data packets?

etc, etc, ad nauseum

I don't think it's thought through very well and shows us how important it
is that we techie folks talk to those politicians and explain issues like
these.  Besides, he probably said it to accomplish a much narrower task
that had nothing to do with the overall technical and political issue of
VoIP, like appeasing a PAC man (or somesuch) with deep pockets...  ;)

scott



On Tue, 2 Mar 2004, Dewitt Latimer wrote:

:  VOIP of the Peoplecross-post of an interesting WSJ article on VoIP.
:
:  -d
:
:
:  ----- Original Message -----
:
:  Should local governments have an inherent right to regulate and tax any 
communication between two individuals that utilizes a human voice? Should we 
discourage the use of broadband networks for fast, reliable and cheap communications 
simply because a new technology doesn't fit neatly into an existing regulatory slot? 
Should regulations discriminate between two data files simply because one carries 
instant messaging and the other someone's voice?
:
:  Until quite recently, these questions were relegated to circles of academics, 
techies or regulation junkies (yes, they do exist) speculating about how the Internet 
might affect entrenched telephony providers. Today, these issues have become 
practical, substantive questions that will make or break the implementation of Voice 
Over Internet Protocol (VOIP) -- a new technology that utilizes the packet-based 
method of Internet communications and, in some instances, the architecture of the 
Internet to bring new voice applications to consumers. VOIP generates significant 
network efficiencies, reduces capital expenditures and produces considerable cost 
savings. Moreover, the innovative features and robust functions underscore that VOIP 
is not just a fancy phone network and must not be treated as such.
:
:  The debate has just begun, but the wagons are already being circled by those 
determined to protect a regulatory scheme based on the copper wire telephone system 
invented by Alexander Graham Bell. Our goal should be to allow this new technology to 
evolve, which will dramatically reduce the cost of voice communication to a level 
commensurate with that of any other bit of data transmitted over the Internet. To 
ensure that a misguided approach does not develop and to provide certainty to the 
marketplace, I will introduce VOIP legislation in the coming weeks to establish 
several key protections for this new technology.
:
:  . First, my legislation will treat VOIP as an information service. The broadband 
cable, DSL or high-speed line you are using does not care whether data packaged using 
the Internet Protocol is a spread sheet, e-mail, instant message or voice traffic. 
Recognizing this simple fact helps establish a level playing field for all forms of 
data in order to fit a regulatory system designed five, 10, 20, 30, 50 or 100 years 
ago. Conversely, there exists no sound basis for discriminating among different types 
of data. Would anyone argue that taxes for e-mail should be different from those 
imposed for transmitting financial spreadsheets or power point presentations? The same 
principle should extend to an Internet voice call as well.
:
:  . Second, we should establish federal jurisdiction over VOIP applications. Internet 
packet switching routes data across a global network requiring a national framework 
and treatment. Allowing thousands of state and local regulators to wrap their 
tentacles around VOIP will place costly and unnecessary burdens on a growing 
interstate communications network. What would happen to e-mail or instant messaging if 
states imposed regulations on those applications? The role of the federal government 
should be to establish a clear and efficient regulatory structure that will not 
discourage investment in the development of these new systems.
:
:  . Third, my bill will protect this data service from taxation. The Internet-access 
tax-moratorium debate has highlighted the need to prevent tax commissioners from 
imposing oppressive tax treatment for telecommunication on VOIP. Those who believe 
that e-mail should be taxed will disagree on principle. All others place themselves in 
the awkward position of trying to differentiate different sets of ones and zeros in 
binary code in order to protect tax collections or corporate revenues. Both attempts 
are signs of short-sightedness -- one on the part of big government, the other on the 
part of big business.
:
:  Since our nation's founding, legislators have justified regulations on the basis 
that they serve the public interest. A regulatory framework may be advanced to improve 
public safety, inform consumers or protect public health. In fact, public-interest 
concerns such as enhanced 911, disability access, and interaction with law enforcement 
will be among those considered by comprehensive legislation. But extending these 
obligations must be done with an understanding of the unique architecture and 
technical aspects of this new application. Unfortunately, within the developing VOIP 
debate, this governing principle of public interest has been turned on its head. The 
defenders of the existing regulatory scheme seek to protect the existing tax, 
distribution of revenues, or other vested interests, at the expense of sound public 
policy.
:
:  If there is one thing we have learned about the information economy, it is that 
innovation circumvents a flawed regulatory regime. Let's get this one right from the 
start.
:
:  **********
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