VoIP Industry to Form Global IP Alliance

Askin said the alliance had received a strong support from FCC Chmn. Powell and the FCC International Bureau: “They like the fact that the industry is trying to develop global IP solutions. They want to see where the industry can go with self-governance, so the FCC doesn’t have to assert unnecessary regulatory oversight.” Askin said Powell had acknowledged global solutions were important for the IP technology, which “transcends the borders.” He said he hadn’t officially discussed creation of the alliance with regulators in other countries, because “we don’t have the official board membership yet.”

Powell aide Christopher Libertelli told us he and his boss supported the idea: “It sounds like a very positive effort.” He said the FCC would prefer the industry to come up with voluntary solutions on key VoIP issues. “Companies have to move as quickly as possible to develop industry solutions” on social policy issues, especially 911, he said: “911 is the most immediate question we are looking the industry to move forward on.” Libertelli said the FCC would be “watching closely” the Alliance work.

Askin told us the alliance would develop industry solutions to address public policy issues. “One of the problems with law enforcement intercept and emergency response is that different countries are working on their own solutions,” he said: “We try to get the world together to come up with consistent solutions that will work across the countries.” He noted such solutions needn’t be “U.S.- centric.” Askin also said the group would reach out to regulators to “demonstrate the power of IP.” He said it would be more “an education and information source” than a lobby. He said the idea was to put together data on VoIP proceedings and activities globally and make it “a one-stop source of information.” He said members would also benefit from making “contracts with their peers around the world and that will provide business solutions.”

The alliance is expected to have a board of governors consisting of 21 representatives from large and small IP- based application providers globally, and will include the 11 founders. Pulver.com’s Jeff Pulver will be interim chairman, and his company will initially contribute $100,000 cash. Askin said some VON Coalition members will likely join the alliance. “We are also reaching to Bell companies and will have at least one Bell” as a member, he said. He said he expected to have about 20 core members “over the next several months” and 200 “in a couple of years.” “My hope is to make it a truly global organization,” he said.

Under alliance principles, members agree to: (1) Promote the interconnectivity of IP-based communications. (2) Develop “financially responsible industry-based solutions to satisfy worthy policy objectives, such as emergency response, law enforcement, security and privacy, naming and addressing.” (3) Protect the rights of IP-based communications users. (4) “Ensure that IP-based communications may grow unregulated or with as little regulation as possible, and consistent with the goal of fostering open IP-based communications across the Internet.” (5) Create “one large IP-based communications global network by using open global Internet standards.”

(6) Accomplish interconnections between IP-based communications providers “in a responsible way, so as not to expose the networks to unwanted attacks and users to unwanted telemarketing and spam.” Alliance members will use the pertinent IETF and ITU-T standards and practices and “must assure authenticated and correct IETF and ITU-T standards compliant transmission of the identity of their subscribers who originate a call.” (7) Support the model of “financially sustainable Internet broadband service” and IP-based communications, while at the same time promoting competition in the open marketplace. (8) Develop intellectual property protection and the promotion of open standards, using similar guidelines as those for IETF. (9) Cooperate with other organizations that work “to ensure the proper unregulated treatment of VoIP.”

“The alliance is a very useful function for the industry,” said Global Crossing Vp-Regulatory Affairs Paul Kouroupas. He said it would be “really helpful,” because it “will provide information on policy debates on VoIP around the world and will participate in work of some of the standards-making bodies and forums that can impact the look and feel of IP products.” He said Global Crossing liked that the alliance would address issues at a global level, and look at matters “outside the purely regulatory issues.” He said it would also give a voice to some VoIP start-ups that don’t have financial resources to get involved in broader issues on their own. Kelly Larabee of Skype, which is also a member of the VON Coalition said the alliance had “the right approach in understanding that issues presented by VoIP are truly global… These issues are bigger than a single country, so understanding of what is happening around the world is really important.”

Meanwhile, Covad, which has been involved in talks about entering the alliance but hasn’t committed yet, released a white paper arguing VoIP should be viewed as an unregulated information service with industry-led, rather than govt.- mandated solutions. It also said VoIP future depends on “a farsighted regulatory approach that preserves access to the ‘last-mile’ lines that facilities-based providers use to reach customers.” It urged policy-makers to maintain “an appropriate regulatory framework” on those underlying facilities to “maximize innovation in VoIP services, promote competition and allow industry-led efforts to determine the best technical means to accomplish social policy goals such as E911 or [CALEA] access.”

Covad, a VON Coalition member, said traditional social policy goals could be met without enacting new regulatory requirements for VoIP services. “The enforcement of existing regulations on telecommunications service providers like Covad, combined with industry experts working together to solve problems and set standards, can meet social policy objectives,” it said. It outlined a set of recommendations on: (1) Universal Service Fund. Covad said “rather than imposing new USF obligations on information services like VoIP, regulators can help safeguard universal service by rationalizing the existing contribution system, so that all providers of narrowband and broadband communications services contribute fairly.” (2) 911 access. It said “new capabilities and support are required to meet 911 objectives with more widespread VoIP adoption, as an area code or telephone number has no necessary relationship to the physical location where a VoIP call originates.” It said access to reliable 911 information should be developed “in the first instance through voluntary industry efforts.”

(3) CALEA. Covad questioned the need for “intrusive new regulation of overlying information services like VoIP,” saying industry standard-setting bodies were already developing solutions to allow law enforcement access to packet-mode and broadband transmission technologies. But it said VoIP providers should “work closely with law enforcement authorities to ensure that critical homeland security and law enforcement needs are met.” (4) Intercarrier compensation. Covad urged regulators to “refrain from imposing legacy access charge regulations in VoIP services, and instead should focus their efforts on reforming existing regulations to develop a comprehensive inter-carrier compensation mechanism.”