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Regulation and Taxation of Voice over Internet Protocol in the United States
2007-05-08
Voice over Internet Protocol (VoIP) or Internet Telephony is a technology which enables voice calls using a broadband Internet connection instead of regular phone line. Some VoIP services only work over the computer or a special VoIP phone, but there are other services which permit the use of a traditional phone connected to a VoIP adapter. Due to the digital revolution, the United States Congress has feared that taxing and regulating Internet services might impede new technological advancements and reduce the number of users who can afford Internet access. Therefore, Congress has passed several regulatory acts to prevent states from exercising regulatory authority over new Internet services, and has given the Federal Communications Commission (FCC) jurisdiction over new services such as VoIP.
The legislation that may be relevant to VoIP regulation and taxation is directed toward Internet access or information services, and this legislation was drafted before the rise of VoIP. As of now the only proposed federal legislation that specifically addresses VoIP services is the VoIP Regulatory Freedom Act. The issue related to VoIP regulation and taxation is whether or not VoIP qualifies as Internet access or an information service. In June 2005, the FCC imposed Enhanced 911 (E911) obligations on providers of interconnected VoIP services.
What are the issues related to VoIP regulation and taxation?
The Telecom Act provides for different levels of regulation by differentiating between telecommunication services and information services, as Congress has intended to keep Internet-related services free from any regulatory burdens. It is also not clear whether under Title II of the Telecom Act, VoIP is subject to common carrier obligations as a telecommunications service, or whether under Title I, VoIP is largely free from federal regulation as an information service.
If the Telecom Act does not prescribe a particular regulatory treatment, as in the case of VoIP, then the FCC may have authority to impose requirements under Title I. Therefore the FCC has issued several declaratory rulings on various VoIP services. The FCC has also made several reports to Congress regarding the classification of different varieties of VoIP services. However, the FCC was able to clarify the regulatory status of only a limited segment of the broad range of services using VoIP technology, leaving the great bulk of these services in regulatory limbo.
Why has the FCC imposed Enhanced 911 obligations on providers of interconnected VoIP services?
Due to reports that some VoIP subscribers were unable to access 911 emergency services, the FCC has taken action to make sure that emergency calls from VoIP services will get through to the appropriate public safety authorities by imposing Enhanced 911 (E911) obligations on providers of interconnected VoIP services in June 2005. E911 is imposed on VoIP services that allow users generally to receive calls from, and terminate calls to, the Public Switched Telephone Network (PSTN), including wireless networks.
However, 911 calls from VoIP phones work differently from calls from a land line. Therefore, consumers must register their location with the VoIP service provider and keep their location information current.
What is the objective of the Proposed VoIP Regulatory Freedom Act?
In order to specifically address regulation and taxation of VoIP, the Congress introduced the VoIP Regulatory Freedom Act (“VRFA”). The aim of the VRFA is to prevent the imposition of harmful obligations or a patchwork of multiple and discriminatory regulations on the providers of applications that use VoIP or any successor protocol to offer 2-way or multidirectional voice communications. If this proposed legislation comes into effect, it would prevent states from enacting any laws or regulations that regulate, or have the effect of regulating VoIP. This proposed legislation would strictly limit the regulatory power over VoIP to the federal government, thereby giving the FCC broad authority to regulate.
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VoIP Providers List Information |
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About VoIP Providers List
VoIP Providers List services save time for companies searching both for information and interconnection partners, interested in voice minutes exchange, i.e. VoIP minutes termination and origination, as well as hardware and software trade. We provide information on interconnection services, VoIP hardware solutions and VoIP software , as well as overall situation in the VoIP industry.
VoIP Providers List is constantly moderated, and thus we can guarantee that any VoIP provider published in the web-based company catalogue has provided accurate details on its services and operations.
We are constantly working on improvement and development of our services. Your comments and proposals regarding the services are highly welcome. Please, do not hesitate to contact us providing with your ideas, opinion, and feed-back. We will be grateful for any information and useful links on Voice over IP, VoIP hardware, VoIP software, and VoIP Providers. |
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VoIP Providers Statistics |
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Providers in database: 3315
Users Online: 281
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