VoIP service regulation: a closer look

Regulation of VoIP services is a hot button topic in the information technology world. Seen by many industry insiders to be the future of telecommunications, VoIP is constantly growing and has been adapted by new business in a number of verticals.

In a new article from Business.com, Dave Thomas took a look at the VoIP regulation from all sides and analyzed the major issues. The debate about industry regulations has already been heard in a number of states including California, New Hampshire and New York, with deregulation coming out on top.

The Pro VoIP regulation argument is also on the side of the consumers. With no regulations, customers have no place to turn to cite malevolent service. Affordability, access and consumer quality are the three main topics that telephone regulation would cover.

The negative aspect of government regulation is all about innovation. More regulation will keep startup companies out of the market and trying to offer something different. Competition is the mother of innovation in the business world.

The other aspect to the VoIP regulation that gets some talk is the FCC and federal regulations. VoIP systems are classified as “information services,” meaning they are not subject to telephone regulations. There are, however, a handful of things the FCC has established for the VoIP industry including disability services, 911 enhancements, phone number portability and contributing to the Universal Service Fund, which helps pay for phone services for low-income and rural areas.

Regardless of where the industry lands on the subject, it will take time before the effects of the the current deregulation is felt.

“The trend on both the federal and state levels is toward less regulation of VoIP service rather than more,” wrote Thomas. “Several states are enacting legislation that codifies in law the hands-off approach that most states have taken anyway. The effect of deregulation that is spelled out in law will play out over the next several years.”

VoIP service regulation continue to be a talking point in the industry. With unified communication systems growing in popularity, time will tell how the regulation debate will play out.

Regulation of VoIP services is a hot button topic in the information technology world. Seen by many industry insiders to be the future of telecommunications, VoIP is constantly growing and has been adapted by new business in a number of verticals.