VOIP.com - Internet Phone Service

VoIP, once the domain of card-carrying geeks everywhere, has quickly gained momentum as a viable alternative to mainstream phone service.

In the Beginning

When IP telephony first emerged on the telecommunications scene, it was largely ignored and completely unregulated. Low bandwidth and cobbled-together headsets designed for other applications made computer-to-computer communication less than desirable.

The increased availability, in recent years, of broadband internet access acted as a catalyst for growth within the VoIP community. This expansion fueled the demand for better technology and more powerful IP telephony features.

Since VoIP companies didn't need to invest in creating their own networks of copper and fiber, there were relatively few barriers to entry for those looking to become phone service providers. VoIP customers simply used the broadband they were already paying for in conjunction with Voice Over IP software and services. Bootstrap startups took prolific advantage of this opportunity.

Growing Pains

While the Federal Communications Commission (FCC) didn't initially view VoIP as a technology needing regulation, it began to pay closer attention as popularity soared. Negligence suits against VoIP operators and growing pressure from the telecom giants spurred the FCC's decision to begin applying rules to VoIP.

In 2005, the FCC passed legislation requiring VoIP providers to offer their customers enhanced 911, which connects users automatically to the correct emergency services and transmits the caller's location and callback information.

Setting a deadline of 120 days for VoIP compliance, the FCC placed smaller startups in an impossible position. This was a marked contrast to the more than 10 years traditional telecommunication providers were given. Facing enormous fines and under orders not to add new customers until compliance was met, many companies faded away.

VoIP Comes of Age

Fortunately Congress stepped in with amendments to the regulation that extended the deadline and forced incumbent phone companies to give VoIP providers access to their E-911 networks.

An extraordinary number of VoIP businesses were able to meet these requirements, creating emergency services more closely aligned to what consumers expected. Equally important, government intervention on behalf of the VoIP providers reinforced the value placed on continued growth for IP telephony.