Tread lightly on IP telephony

America's Network,  June 15, 2004  by Lynnette Luna

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It's ironic that the emergence of broadband is ushering in voice service as the killer application, says Richard E. Wiley. Considered the most disruptive technology to reach the telecom industry, VoIP promises to fundamentally alter the way regulators approach the telecom industry in the future.

"VoIP eliminates the idea that substitutable services should be regulated differently depending on the platform or the nature of the service provider," says Wiley. "If consumers can get telephone service from a multitude of facilities-based competitors, there is little need to regulate."

That certainly gives telecom providers during the next five years the incentive to substantially role out VoIP to deliver services and applications regulators could only have dreamed of, says Wiley.

"I don't think you're going to be able to stop VoIP technology unless the government came in and regulated with a heavy hand," he forecasts.

Indeed, the Federal Communications Commission has hinted about a light-touch approach to regulation of VoIP services. In fact, VoIP will rekindle the urge to merge, says Wiley. Distance will no longer be relevant to the price of a call, mitigating any competitive concerns of telecom powerhouses dominating the market. Because VoIP levels the playing field, a multitude of non-traditional telecom players will enter the market, calling into question whether government intervention will be needed at all in this new free marketplace.

But it's difficult to look to this new future when political and legal brawls over whether the unbundled network element platform (UNE-P) should remain available to new competitors cloud telecom policy today. As a result, broadband issues have moved out of the regulatory limelight.

"The big fight over narrowband has largely obscured the FCC's unity on broadband deregulation," says Wiley. "The FCC has largely exempted broadband facilities, which is vitally important to future innovation and investment. But it's sort of been thrown underground because of this fight over UNE-P."

When it comes to VoIP, the commission faces some tough regulatory questions over how to mandate inter-carrier compensation, disability access, 911 capabilities and law enforcement access. And that promises to keep communications lawyers well employed during the next several years, jokes Wiley.

Richard E. Wiley

Senior Partner at D.C. law firm Wiley, Rein & Fielding

As a former chairman, commissioner and general counsel of the Federal Communications Commission (1970-1977), Wiley was a leading force in the agency's initial efforts to foster increased competition and lessened the regulation in the communications field.

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