Rep. Chip Pickering (R.-Miss.) and Sen. John Sununu (R-N.H.) have introduced bills that forbid states from imposing taxes and fees on Internet-based phone service and gives the federal government jurisdiction over the technology.
“Voice is the next step in voice communications,” Pickering said in a statement. “… But for the industry to develop and prosper, we must have a national standard that prevents patchwork regulation from stifling innovation."
The bills require VoIP providers to contribute to a Universal Service Fund (USF) either directly or indirectly based on a flat fee. The Senate bill states the FCC shall ensure VoIP providers contribute to the USF (however, the regulator can make exemptions), while the House bill is less specific, specifying the commission can institute a contribution process based on the assignment of telephone numbers or other methodologies.
The Senate bill states the FCC shall ensure VoIP providers contribute to the USF based on a flat fee, though the regulator can make exemptions. The House bill is less specific, stipulating the commission can institute a contribution process based on the assignment of telephone numbers or other methodologies.
The bills, dubbed the “VoIP Regulatory Freedom Act of 2004,” also include provisions related to 9-1-1 services, law enforcement’s ability to monitor calls, telephone access for disabled persons, and improving the reliability of the technology. In addition, according to the bills, as of 2005 the FCC will provide Congress with a report once every two years on recommendations for additional regulations to VoIP.
Additionally, Sununu's bill prohibits the access fee system that phone companies pay one another to lease their networks, yet it doesn't ban alternate arrangements, including private negotiations, the recovery of costs through reciprocal obligations, or other agreements that waive mutual recovery.
The issue of intercarrier compensation is among the most heated concerns associated with the pending regulation of VoIP. Unless traffic is being routed wholly over the Internet, a call frequently touches the PSTN controlled by the four regional Bell operating companies and other local phone providers.
Despite the regulatory move, the bills do not propose specific solutions to complex problems the FCC is trying to solve. FCC Chairman Michael Powell has said he does not want to curb innovation with too many rules and regulations, but he is reportedly advancing such national policies as making affordable telephone service available across the country through the USF, to which VoIP providers do not currently have to contribute.
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