VoIP Basics and Technology

VoIP The Basics and Equipment.

kid As the popularity of VoIP enhances, and normal line users switch to VoIP in the fast mode, government is showing more interest to regulate VoIP in a manner similar to legacy normal phone services.

In the U.S., the Federal Communications Commission now requires all VoIP operators who do not support Enhanced 911 to attach a sticker warning that traditional 911 services aren't available. The FCC recently required VoIP operators to support CALEA wiretap functionality. The Telecommunications Act of 2005 proposes adding more traditional PSTN regulations, such as local number portability and universal service fees. Other future legal issues are likely to include laws against wiretapping and network neutrality.

Some Latin American and Caribbean countries, fearful for their state owned telephone services, have imposed restrictions on the use of VoIP, including in Panama where VoIP is taxed. In Ethiopia, where a totalitarian government is monopolizing telecommunication service, it is a criminal offence to offer services using VoIP. The country has installed firewalls to prevent international calls being made using VoIP. These measures were taken after a popularity in VoIP reduced the income generated by the state owned telecommunication company.

In the European Union, the treatment of VoIP service providers is a decision for each Member State's national telecoms regulator, which must use competition law theory to define relevant national markets and then determine whether any service provider on those national markets has "significant market power" (and so should be subject to certain obligations). A general distinction is usually made between VoIP services that function over managed networks (via broadband connections) and VoIP services that function over unmanaged networks (essentially, the Internet).

VoIP services that function over managed networks are often considered to be a viable substitute for PSTN telephone services (despite the problems of power outages and lack of geographical information); as a result, major operators that provide these services (in practice, incumbent operators) may find themselves bound by obligations of price control or accounting separation.

VoIP services that function over unmanaged networks are often considered to be too poor in quality to be a viable substitute for PSTN services; as a result, they may be provided without any specific obligations, even if a service provider has "significant market power".

The relevant EU Directive is not clearly drafted concerning obligations which can exist independently of market power (e.g. the obligation to offer access to emergency calls), and it is impossible to say definitively whether VoIP service providers of either type are bound by them. A review of the EU Directive is under way and should be complete by 2007.

In India, it is legal to use VoIP, but it is illegal to have VoIP gateways inside India. This effectively means that people who have PCs can use them to make a VoIP call to any number, but if the remote side is a normal phone, the gateway that converts the VoIP call to a POTS call should not be inside India.

In the certain countries, it is illegal to use any form of VoIP, to the extent that websites of Skype and Gizmo Project don't work. However, the sad part is the fact that certain telecom providers, earns a significant amount of its revenues by routing calls by VoIP.

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