VoIP: A debate over information service or telephone application in US: A new perspective in convergence era

As new voice-over-IP (VoIP) services rapidly emerge, a debate is growing over how the emerging technology fits into the traditional telecommunications regulation and industrial schemes. The debate on VoIP has been whether VoIP traffic should be subjected to any or all of the various common carrier regulations. VoIP sparked a regulatory debate whether it is phone call service, which will have a great impact on telecom industry’s business or just information service. Because of the complexity of the issue, and the intent to let the premature technology grow, the FCC has so far taken a hands-off approach taking tentative assumption that VoIP is not a telecom service. Under the provisional hand-off approach, VoIP providers are exempt from rules that govern telecom services. However, traditional service providers argue that VoIP should be classified as a telecom service and take equal responsibilities as traditional voice calls. VoIP providers counter argue that incumbent telcos can easily dominate market driving VoIP providers out of the market. They request new legislation that protects the services from being hit with access charges from entrenched telco. This paper reviews the nature of these debates, outlines the challenges faced by regulators, briefly summarizes how other countries’ views may have to adapt and offer new praxis that will benefit the consumers in the long run.