VoIP Regulation in the United States

From teleclick.ca

There has been much debate in recent years on what role, if any, regulatory agencies like the Federal Communications Commission should be playing in the American VoIP industry.

Back in the early days of residential VoIP, regulators saw IP voice technology as an obscure fringe of the largely unrelated internet, and chose to take a generally hands-off approach. As IP communication began its move into the mainstream, however, the issue quickly become more complicated.

E911 regulations, for example, which are enforced by the FCC and ensure that all telephone customers have adequate access to emergency response services, did not initially apply to IP voice services. VoIP users could dial 911 and speak to an operator, but the caller’s location would not automatically be made visible to emergency personnel.

As “broadband phone” services became popular among American customers, the FCC began to impose E911 restrictions on residential VoIP providers like Vonage. This led to a mad scramble as provides rushed to comply in time to meet largely unrealistic regulatory deadlines.

Vonage announced full E911 compliance in December 2005, about seven months after the FCC order, and other residential VoIP providers were quick to follow suit.

Federal telecommunications regulators have also involved themselves in another, perhaps more contentious issue, by demanding that VoIP providers comply with the Communications Assistance for Law Enforcement Act (CALEA) of 1994. This will allow police and government authorities to wiretap IP networks and listen in on the conversations of suspected criminals. The U.S. Court of Appeal ruled in June 2006 that the FCC had a right to enforce CALEA on VoIP services.

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As broadband phone providers and privacy advocates fight this perceived injustice, however, most analysts believe that the more popular VoIP becomes, the more determined U.S. regulators will become to restrict and tamper with it.

ious privacy implications, it has raised a significant debate about who should foot the bill for CALEA compliance, as VoIP providers and customers argue that they should not be responsible for the steep costs involved.