Business Services Industry

Another duck that can't fly.(NEXT GENERATION NETWORKS)

Business Communications Review, December, 2005 by Passmore, David

Back in mid-2004, several state PUCs and legislators began trying to regulate then-new VOIP services, such as Vonage, AT & T's CallVantage and Packet8. In particular, states such as Minnesota tried to subject VOIP to E-911 requirements, and to the same service quality oversight as the PSTN. However, not surprisingly, the biggest driver for such attempted regulation was money--states insisted that they had the right to tax non-facilities-based "parasitic" VOIP services the same as traditional telephony.

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Because PUCs and legislators are typically lawyers without any understanding of how IP networks operate, they failed to appreciate the technical differences between PSTN and VOIP. Many tried to apply a simple-minded "duck...

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