Broadband providers and Internet phone services must comply with wiretapping requirements designed for the traditional phone network, the Federal Communications Commission said in a preliminary decision Wednesday.
The 5-0 vote by the FCC is a major step toward regulations designed to help police and spy agencies eavesdrop on all forms of high-speed Internet access, including cable modems, wireless, satellite and broadband over power lines (News.com, August 4th, 2004).
Skype CEO Niklas Zennstrom believes Skype has no legal obligation to provide any means for interception in his company's VoIP software. How will U.S. governemt force a company based in Luxembourg to insert backdoors in its software when it has no obligation to do so? (News.com, August 9th, 2004).
Responding to new technology and consumer demand, the telecom market surpasses whatever legislators could have envisioned in 1996, as telecommunication companies are implementing new business models. The legal distinctions maintained in telecom law don’t make any sense in light of the reality of the communications marketplace (LocalTechWire, August, 8th, 2004).
Telecommunications services in the EU are governed under the 2003 Regulatory Framework (the New Regulatory Framework (NRF). Some VoIP and associated convergent services do not fit within the NRF. The European Commission has issued a study which identifies and explains the important issues associated with the transition from the existing circuit-switched telephone network (PSTN) to IP packet-switched networks for the provision of voice and associated convergent services. These main issues are:
- Definition of Public Available Telephony Services and access to emergency services;
- Location independence and emergency access;
- Network availability in cases of disaster;
- Possible pressure on national numbering plans;
- Possible issues arising from extraterritorial service providers.
For instance, whether or not a VoIP service is a PATS (Public Available Telephony Service), has important implications for the provider of the service:
- having the ability to make international calls using the 00 prefix;
- to have a phone bill;
- to be able to prevent publication of the number in directories;
- to be able to block certain numbers from calling the number;
- to be able to withhold the number when making calls.
In my opinion there is a strong relation between Business IQ and Regulatory Affairs. The Business IQ of VoIP service providers all has to do with pricing, quality and strategic positions of the incumbent telco’s.
The former EU regulatory framework for telecommunications has been successful in creating the conditions for effective competition in the telecommunications sector during the transition from monopoly to full competition. The current framework is designed to establish open network provision. All transmission networks and services are covered by a single regulatory framework, which anticipates on the convergence of the telecommunications, media and information technology sectors.
The essential questions for the National Regulatory Authorities should be:
- What will be new relevant markets?
- What in these markets, is the dominant Business IQ?
- Which kind of behaviour of market players should be regulated?
- What do we need to effectively influence behaviour in the right directions?
These questions are just as essential for the incumbent. Existing regulation can have substantial negative effects on the pace of adaptation of IP technology! For instance, if Skype really is a disrupting innovation, the incumbent telco’s are going to study current regulations trying to slow down Skype’s business. From the point of view of the incumbent, it would be of great help if Skype might be obliged to supply something they are incapable of providing. But this is a defensive strategy which only will work temporarily. It would be much better for them, if telco’s would concentrate on the same essential questions as the EU and National Regulatory Authorities. This will surely give them better opportunities in new communication markets.
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