Verizon Communications opposes a petition to mandate IP-to-IP interconnection between telecommunications providers. The petition was filed by TWTC and claims its goals will benefit consumers, but Verizon argues TWTC's motives are self-serving. Mandating IP connections could increase costs for consumers and providers by requiring them to replace reliable public switched telephone network infrastructure with IP networks prematurely. It could also stifle innovation and investment in the industry. A better solution would be to allow the market and technology to evolve solutions through cooperative standards organizations rather than mandatory regulations.

1. Verizon Communications, Inc.
Akshay Kulkarni, CEO
Vishwas Nandeeshappa, CFO
Marissa Johnson, General Counsel

2. Petition to mandate IP-to-IP
interconnection should be denied
 TWTC’s motives are self-serving
 TWTC offers goals without means
 VOIP is an “information service”
 TWTC misinterprets the Federal
Communications Act

3. Verizon’s Perspective
 What is the impact on the consumer?
 What is the impact on the providers?
 What other factors to consider?
 What is a better solution?

4. What is the impact on the
consumer?
 IP-only signals the end of PSTN
 PSTN reliable in emergencies
 Quality at peak times
 IP-only increases costs
 More education
Only 24% of Americans have ever
placed a phone call online
 Upgrade all technology
Pew Internet
Research, http://pewinternet.org/Reports/2011/13--
Internet-phone-calls--Skype/Main-report.aspx

5. What other factors to consider?
 Increased confusion &
litigation
 Increased FCC involvement
 Top-down regulation
 Interaction with other laws:
 Privacy & Security
 International
 Broadband access no longer
the focus
 National Broadband Plan

6. What is the impact on the
provider?
 Stifles innovation and investment
 Remodeling the existing infrastructure
 Transition to an unstable market
 Broadband penetration loses focus

7. Broadband access:
http://www.broadbandmap.gov/demographics#v=density&c=4.00/39.58/-86.62

8. What is a better solution?
 Market-driven conversion
 Mandatory regulations
premature
 Evolving technology
 Example: Betamax vs. VHS
 Alliance for Telecommunication
Industry Solutions (ATIS)
 250 Members
 Negotiating future guidelines

9. Conclusion :
FCC MANDATE
If passed If not passed
 Added cost to the consumer  Solutions to technical issues
 Market may become obsolete  Market driven agreements
 Stifled investment and  Creating stability from an
innovation evolving environment
 Loses focus on broadband  Focus on broadband access
access

10. Q&A

11. THANK YOU