VOIP.com - Internet Phone Service

VoIP's explosive growth has traditional telecommunication service providers scrambling for ways to take advantage of broadband dependent technologies. VoIP service providers are fighting back, and they're not alone.

Net Neutrality

Major telecom corporations claim their support for net neutrality, but when it comes to putting it into law, they're not so sure. In fact, while highly visible spokespeople for companies like Qwest, Verizon, and SBC are busy paying lip service to the concept; their executives are in the back room cooking up new and inventive ways to hang onto dwindling market share.

Net neutrality is basically an extension of the Common Carrier regulations, which were put in place by Congress to promote healthy competition among telecommunication service providers. Net neutrality legislation would guarantee users the freedom to have full access to the internet, without interference from service providers.

For example, your DSL provider should not be able to block your access to a competitor's site. Nor should it force companies like Google and Yahoo! (that already pay for telecom services) pay an extra fee before consumers (who already pay for internet access) can have unblocked access to Google's content. It should not charge you extra fees for using your broadband in a home wireless network and you should not be penalized for choosing VoIP over traditional phone service.

Preserving Unfettered Access

These anti-competitive practices, while not expressly forbidden in the Telecommunications Act of 1996, are certainly against the intent of the legislation. The FCC's (Federal Communications Commission) 2005 policy statement in support of net neutrality, while a step in the right direction, completely lacks any element of enforceability.

Prominent internet companies and consumer organizations have called for the addition of net neutrality regulation to the Telecommunications Act, which is currently undergoing a major overhaul. Businesses like Adobe, Amazon, eBay, and Google have obvious reasons for pushing such legislation, but they're also being joined by influential consumer groups, like AARP, who want to ensure their members continue to have fair access to the internet.

Qwest, SBC Pledge No Blocking

Telecom corporations, aware of the potential negative reaction from consumers, are taking great pains to reassure users that they will not block traffic to competitor's content or degrade the network's performance preferentially against a competitor.

CEO of Qwest Communications Richard Notebaert recently addressed participants at the Voice Over Network Spring Conference, saying, "My job has never been to degrade service or to give any customers less capability than they asked for and paid for."

Edward Whitacre, CEO of SBC - AT&T responded to concerns about potential blocking with, "Any provider that blocks access to content is inviting customers to find another provider. And that's just bad business."

The Bottom Line

Even if net neutrality legislation doesn't become part of the new Telecommunications Act, consumers are not unprotected. The FCC has repeatedly taken telecom companies to task when they step out of line, issuing hefty fines until anti-competitive actions cease. And the telecom giants themselves, even while looking for loopholes and wiggle room, acknowledge the incredible power of consumer choice.