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VoIP Management Could Get Tricky with Deregulation

TMCnews Featured Article


March 28, 2012

VoIP Management Could Get Tricky with Deregulation

By Susan J. Campbell, TMCnet Contributing Editor


Conservatives may have strong feelings regarding “big government”, often stressing how government needs to take a step back and keep their regulations out of their business. But what effect does this have on voice over Internet protocol (VoIP) technologies and VoIP management?



For consumers, deregulation can be a harmful thing because it leaves big corporations unchecked, which hits especially hard in lower SES communities. Many companies are just starting VoIP management solutions of their own. But Verizon (News - Alert) is currently seeking deregulation of its phone services, which include VoIP technology, according to this Huffington Post report

Many consumers don't know what VoIP is or that they are currently using it. Most medium- to large-sized companies have enlisted VoIP management procedures in their communications. As a result, users will dial a number, talk to the person on the other end, and they're none the wiser that they've just made that call using VoIP. And this technology is being used more often than ever as companies are seeing the value in its ability to cut costs and add capabilities.

 As VoIP and VoIP management is still relatively new, the government has not highly regulated it. However, in New York, the legislature is considering a permanent surrender of the state's ability to regulate VoIP management solutions

By some accounts, the move would work out poorly for New York consumers. The reason it is a bad move is that consumers would not have the right to bring formal complaints to the state's Public Service Commission. Under-served areas of the state would have no recourse in bringing their infrastructure up to speed with the rest of the state. Consumers could get trapped into a rate structure that delivers little but demands much.

Taking the brunt of the heat is Verizon, which provides much of the VoIP coverage in New York. People are crying foul, accusing Verizon of establishing a monopoly, and that other states should be cautious of their own legislators' attempts at permanent deregulation of VoIP services.

Traditional phone services in New York contribute revenue to a program that offers connectivity to the elderly and others who fall in the disadvantaged category. But VoIP providers aren't held to the same standard, and they would never have to if they are deregulated. Of the 20 states that have deregulated phone services, 17 have increased rates as a result.States are certainly taking notice. 

Colorado is fighting deregulation, and Missouri and Kansas have already established that VoIP providers must pay into a fund for under-served areas of their states.As Americans work hard to get back on their feet after several years of economically trying times, and the advancements in VoIP services are seeing a tremendous boost, it would seem poor timing to offer profit to few while taking from many.




Edited by Juliana Kenny







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