The explosive growth of the Internet is driving
a new era of telecommunications marked by the convergence
of data, voice and video. Convergence is enabling the delivery
of a wide variety of multi-media services and is creating
an array of new products and services for consumers. Today,
new applications, like Voice over IP, real-time audio and
video conferencing and Internet telephony are redefining the
world of telecommunications.
- As "new world" data technologies enable the
seamless integration of "old world" voice technologies,
governments must refrain from applying conventional monopolistic
rules and regulations and creating new ones.
- Burdensome regulations and barriers will limit new entrants,
delay the introduction of new products and services to
consumers, and stunt the overall growth of the Internet.
To ensure a robust global information infrastructure into
the next millenium, policymakers and regulators should adopt
policies that:
- embrace a "hands-off" approach to the Internet;
- promote competition in telecommunications infrastructure
by removing barriers to entry;
- encourage innovation and investment in advanced technologies;
and
- let industry and market forces lead.
"Deregulation and competition are accelerating
the delivery of infrastructure for building the telecommunications
services of the future."
Kevin Kennedy
Senior Vice President
Service Provider Line of Business
Issue Highlights
Voice
over IP
Issue:
The ability to deliver voice traffic onto existing packet and
cell-switched networks is one of the most exciting new Internet applications. Today,
delivery of voice over the internet can be achieved in two ways: 1) Voice over Internet
Protocol or "VoIP" is the transmission of voice in IP packets, not offered on a
common carrier basis, and 2) Internet Telephony OTOH, which is the carriage of voice on a
common carrier basis. While it is not yet clear whether either of these will be the next
"killer apps," since neither one is yet even a competitive alternative to the
traditional circuit-switched voice telephony, it is clear that regulation of either would
certainly diminish its chances for success.
Impact:
The ability to move voice across data networks is an application that potentially will
save consumers money.
- Voice over IP requires that only a single infrastructure be maintained.
- Corporations are most likely to adopt Voice over IP early on to reduce
costs.
- There is great future potential for consumers to use Voice over IP to
combine services.
Position:
The existing unregulated, open structure for information services, such as VoIP and
Internet telephony, should be maintained. Imposing regulations that apply to conventional
circuit-switched voice carriers will impede the introduction of new services. It could
also curtail future innovations that might enhance or benefit from VoIP applications like
real-time foreign language translations services. Undue regulation would also narrow
choices for consumers.
Cisco Involvement:
Cisco is actively working to educate the FCC on the importance of this new technology and
is working with its member trade associations to oppose regulation of IP telephony.
Status:
On April 10, 1988, The FCC issued a report to Congress on the Universal Service Fund
upholding its prior distinction between "information" and
"telecommunications" services.
- Under this definition, Internet telephony is characterized as
"information services."
- Internet telephony is, therefore, not subject to the access charges that
apply to telecommunications services.
- The FCC stated it plans to continue evaluating regulation of VoIP
services on a "case-by-case basis."
Fast Facts:
- IP Telephony is expected to capture 5% of long distance traffic by 2002
according to a study by SRI International.
- Vint Cerf, the "father of the Internet," predicts that by
2010, data will represent 90% of traffic over public and private telecom networks.
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