Voice over Internet Protocol


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  • PATS: Publicly Available Telephone Service (same as PSTN)
  • Voice over Internet Protocol

    1. 1. Comparative Telecommunications Law Spring, 2007 Prof. Karl Manheim 13: VoIP Copyright © 2007
    2. 2. Basics of Internet Telephony <ul><li>Different network than the PSTN </li></ul><ul><ul><li>May use some of same physical infrastructure </li></ul></ul><ul><ul><ul><li>PSTN is circuit-switched; Internet is packet-switched </li></ul></ul></ul>
    3. 3. VoIP Technology <ul><li>Packet Switching </li></ul><ul><ul><li>Analog voice signal converted to digital signal, which is then divided into data “packets” </li></ul></ul><ul><ul><li>Packets are sent over Internet like other data </li></ul></ul><ul><ul><li>Reverse process at destination computer </li></ul></ul><ul><li>Resilient VoIP problems </li></ul><ul><ul><li>Latency </li></ul></ul><ul><ul><li>Echo </li></ul></ul><ul><ul><li>DTMF propagation </li></ul></ul>FCC website on IP-enabled services
    4. 4. VoIP Technology <ul><li>Voice ≠ POTS telephony </li></ul><ul><li>In an end-to-end world, applications are defined at the edges </li></ul><ul><li>Innovation happens </li></ul>
    5. 5. VoIP Business Applications
    6. 6. VoIP Technology <ul><li>IP Applications </li></ul><ul><ul><li>All Internet traffic is TCP/IP </li></ul></ul><ul><ul><ul><li>Transmission Control Protocol/Internet Protocol </li></ul></ul></ul><ul><ul><ul><li>Established by IETF (ITU?) </li></ul></ul></ul><ul><li>Benefits of IP </li></ul><ul><ul><li>Use of existing open networks @ lower cost </li></ul></ul><ul><ul><li>Scalable; efficient </li></ul></ul><ul><ul><li>Limitless variety of applications </li></ul></ul><ul><ul><li>Geographic independence </li></ul></ul><ul><li>Skype </li></ul><ul><ul><li>C-C (free) C-PSTN (traffic-sensitive fee) PSTN-C (nts) </li></ul></ul>
    7. 8. VoIP Economics <ul><li>Internet telephony bypasses telcos, </li></ul><ul><ul><li>No interconnection obligations </li></ul></ul><ul><ul><ul><li>Exception: VoIP call from or to standard telephone (e.g., “Computer-to-Phone”, “Phone-to-Phone”) </li></ul></ul></ul><ul><ul><ul><li>Termination charges apply </li></ul></ul></ul><ul><ul><li>No Universal Service surcharges (until recently) </li></ul></ul><ul><li>Competitive pressure on telcos </li></ul><ul><ul><li>Telcos demand compensation from ISPs </li></ul></ul><ul><ul><li>Telcos urge regulation/licensing of VoIP </li></ul></ul><ul><ul><li>Special problem where telco is state-owned </li></ul></ul>
    8. 9. VoIP Regulation <ul><li>Regulatory issues generally < FCC fact sheet > </li></ul><ul><ul><li>Internet not under NRA jurisdiction </li></ul></ul><ul><ul><ul><li>Advent of unregulated services, displacing regulated ones, is disruptive; may spur general deregulation </li></ul></ul></ul><ul><ul><li>VoIP defies national boundaries </li></ul></ul><ul><ul><ul><li>Users are “nomadic” whenever on Internet </li></ul></ul></ul><ul><ul><li>Numbering (E.164 -> ENUM) </li></ul></ul><ul><ul><ul><li>t E lephone NU mber M apping; number portability </li></ul></ul></ul><ul><ul><li>Emergency geolocation (911 / 112) </li></ul></ul><ul><ul><li>Universal Service </li></ul></ul><ul><ul><li>Law Enforcement Access/Interception </li></ul></ul>
    9. 10. VoIP Regulation in US <ul><li>Pulver.com Free World Dialup (2004) </li></ul><ul><ul><li>C-C VoIP is </li></ul></ul><ul><ul><ul><li>Not telecommunications </li></ul></ul></ul><ul><ul><ul><ul><li>VoIP is merely an application (such as a browser, email) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Not a transmission service </li></ul></ul></ul></ul><ul><ul><ul><li>Not a telecommunications service </li></ul></ul></ul><ul><ul><ul><ul><li>VoIP providers don’t offer telecommunications </li></ul></ul></ul></ul><ul><ul><ul><ul><li>No common carrier obligations </li></ul></ul></ul></ul><ul><ul><ul><li>An information service </li></ul></ul></ul><ul><ul><ul><ul><li>capability for generating, acquiring, storing, transforming, processing, retrieving, utilizing info via telecommunications </li></ul></ul></ul></ul><ul><ul><li>Therefore, not regulated by Comm’ns Act. </li></ul></ul>
    10. 11. VoIP Regulation in US <ul><li>NPRM: IP-Enabled Services (3/10/2004) </li></ul><ul><ul><li>Focus on VoIP </li></ul></ul><ul><ul><ul><li>Offered by telcos and facilities-based telecom cos. </li></ul></ul></ul><ul><ul><ul><li>Also by Session Initiated Protocol ( SIP ) providers </li></ul></ul></ul><ul><ul><ul><ul><li>Signaling (ring) used by VoIP, video-conferencing, etc. </li></ul></ul></ul></ul><ul><ul><li>Beyond VoIP </li></ul></ul><ul><ul><ul><li>TTY, VPN, IPTV, VOD, ( VoIP Summit – 5/7/2004) </li></ul></ul></ul><ul><li>First Report and Order (6/3/2005) </li></ul><ul><ul><li>Limited to E911 service; Wiretap functionality </li></ul></ul><ul><li>Telecom Act of 2005/06 (pending) </li></ul><ul><ul><li>Local number portability; Univ.Svc. funding </li></ul></ul>
    11. 12. VoIP Regulation in US <ul><li>Order re AT&T Access Charges (4/21/2004) </li></ul><ul><ul><li>AT&T uses Internet to route interexchange calls </li></ul></ul><ul><ul><ul><li>LEC -> VoIP -> LEC </li></ul></ul></ul><ul><ul><ul><li>Bypasses IXC and IXC obligation to compensate destination LEC to terminate calls, but otherwise looks identical to wireline telephony (incl. CPE) </li></ul></ul></ul><ul><ul><ul><li>So-called “Phone-to-Phone” </li></ul></ul></ul><ul><ul><li>No reason to treat termination any differently </li></ul></ul><ul><ul><ul><li>AT&T must pay access charges </li></ul></ul></ul><ul><ul><ul><li>Order doesn’t apply to Computer-to-Computer VoIP </li></ul></ul></ul>
    12. 13. VoIP Regulation in US <ul><li>Order in Vonage VoIP Services (11/9/2004) </li></ul><ul><ul><li>LECs normally subject to state PUC regulation </li></ul></ul><ul><ul><ul><li>Joint State Federal Board & Separation requirements </li></ul></ul></ul><ul><ul><li>C-C VoIP bypasses LECs; therefore not subject to state regulation </li></ul></ul><ul><ul><ul><li>E.g., E911 services </li></ul></ul></ul><ul><li>Order in Time-Warner Cable (1 Mar 2007) </li></ul><ul><ul><li>Wholesale Comm’n Carrier providing VoIP </li></ul></ul><ul><ul><ul><li>Entitled to ILEC interconnection per § 251(a)(b) </li></ul></ul></ul><ul><ul><ul><li>Intercon’n to PSTN needed for full VoIP deployment </li></ul></ul></ul><ul><ul><li>Number portability and resources </li></ul></ul>
    13. 14. VoIP Regulation in US <ul><li>E911 Services </li></ul><ul><ul><li>Interconnected VoIP E911 order (6/3/05) < link > </li></ul></ul><ul><ul><li>Joint FCC/NARUC Task Force (July 2005) </li></ul></ul><ul><ul><li>IVoIP compliance required by 11/28/06 < link > </li></ul></ul><ul><ul><ul><li>Appeal pending before DC Court of Appeals </li></ul></ul></ul>
    14. 15. VoIP Regulation in EU <ul><li>EC v. Italy (ECJ 2000) </li></ul><ul><ul><li>Does Open Networks Provision apply to VoIP? </li></ul></ul><ul><ul><ul><li>ONP: Council Directive 90/387/EEC </li></ul></ul></ul><ul><ul><ul><ul><li>Open Access; standards; interoperability </li></ul></ul></ul></ul><ul><ul><li>No, VoIP is not a voice telephony service </li></ul></ul><ul><li>VoIP under Telecoms Package (2002) </li></ul><ul><ul><li>Telecom should be technology neutral </li></ul></ul><ul><ul><ul><li>No licensing of VoIP (Authorization Directive) </li></ul></ul></ul><ul><ul><ul><li>But many FPTN obligations apply </li></ul></ul></ul><ul><ul><ul><ul><li>E.g., if VoIP is marketed as a Publicly Available Telephone Service (PATS) in UK - Voice over Broadband (VoB) </li></ul></ul></ul></ul>
    15. 16. VoIP Regulation in EU <ul><li>DGIS Consultation Document (14 June 2004) </li></ul><ul><ul><li>Application of Telecom. Framework Directives </li></ul></ul><ul><ul><ul><li>NRA authorization not required for Electronic Communications Services (Internet services) </li></ul></ul></ul><ul><ul><li>Commission takes “light touch” reg. approach </li></ul></ul><ul><ul><ul><li>VoIP contributes to creation of single European mkt </li></ul></ul></ul><ul><ul><ul><li>VoIP providers may be able to compete with PATS </li></ul></ul></ul><ul><ul><ul><ul><li>Still investigating impact on telephony markets </li></ul></ul></ul></ul><ul><li>Current Issues < EU fact sheet > </li></ul><ul><ul><li>Numbering/portability; emergency svcs; Un.Svc </li></ul></ul><ul><ul><ul><li>See European Regulators’ Group white paper </li></ul></ul></ul>
    16. 17. VoIP Regulation in EU <ul><li>Recent Developments </li></ul><ul><ul><li>Differentiation between VoB and VoIP </li></ul></ul><ul><ul><ul><li>VoB: as a replacement for standard telephony </li></ul></ul></ul><ul><ul><ul><li>Subject to ex ante regulation in appropriate cases </li></ul></ul></ul><ul><ul><li>EC approves ARCEP (FR) decision not to impose ex ante regulation on VoB (2005) < link > </li></ul></ul><ul><ul><ul><li>Robust competition; FPTN elements regulated </li></ul></ul></ul><ul><ul><li>EC approves BNetzA (DE) decision to impose ex ante regulation on VDSL (very high speed broadband) < link > </li></ul></ul><ul><ul><ul><li>May affect market for VoIP and VoB services </li></ul></ul></ul>
    17. 18. VoIP Regulation in Asia <ul><li>China </li></ul><ul><ul><li>Ministry of Information Industry (MII) </li></ul></ul><ul><ul><ul><li>Not regulated, at least if bypasses PSTN </li></ul></ul></ul><ul><ul><ul><li>Very competitive; many calling cards use VoIP </li></ul></ul></ul><ul><li>Singapore </li></ul><ul><ul><li>Info-Communications Development Auth. (IDA) </li></ul></ul><ul><ul><ul><li>Interconnection req’d; reg. forbearance; no E911 </li></ul></ul></ul><ul><li>Korea </li></ul><ul><ul><li>Ministry of Information & Communications (MCI) </li></ul></ul><ul><ul><ul><li>Treatment/regulation as basic telephony service </li></ul></ul></ul>
    18. 19. VoIP Regulation - other countries <ul><li>Canada </li></ul><ul><ul><li>Can. Radiotelevision & Telecom C’mm’n (CRTC) </li></ul></ul><ul><ul><ul><li>IP services using PSTN/telephone numbers are subject to PSTN regulation </li></ul></ul></ul><ul><li>Mexico </li></ul><ul><ul><li>VoIP treated same as voice telephony </li></ul></ul><ul><li>UK </li></ul><ul><ul><li>Office of Communications (OFCOM) </li></ul></ul><ul><ul><ul><li>Reg. forbearance, access to number pool, no E911 </li></ul></ul></ul><ul><li>Other Countries < link > </li></ul>