Calling All Countries: The VoIP Revolution is Here!

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1 Calling All Countries: The VoIP Revolution is Here! Panel: Sheba Chacko BT Global Services Tony Oliver Microsoft Corporation Andrew Powell Leap Wireless International, Inc.

2 Agenda What is VoIP? Regulating VoIP Globally U.S. Framework EU Framework Asia / Pacific VoIP in a Wireless World VoIP for Global Enterprise Voice Enterprise VoIP Customers Q & A

3 What is VoIP and why do we care? What is VoIP? = Voice over Internet Protocol Uses broadband Internet connectivity Voice stream converted to data packets and transferred Reassembled and reconverted to voice stream at other end Why do we care? Functions COST!!

4 U.S. VoIP Regulatory Framework Telecommunications - Extensive regulation Standard telephone service, wireless, satellite and paging Information Services - Generally exempt , voic , video and Internet Interconnected VoIP Not a telecommunications service but still subject to some telecom requirements

5 EU VoIP Regulatory Framework Electronic communications networks Physical infrastructure Electronic communications services Communications conveyance Interconnected VoIP Information society services Online Services EU Proposing Changes Interconnected VoIP, emergency calling, etc.

6 Asia-Pacific VoIP Regulation Highly regulated Different services subject to different regulation Japan India PC-to-PC okay Others: Former Type 2 Carrier PC-to-PSTN within India NOT allowed

7 Example: China Classified as basic or value added telecom services (VATS) Permits required if under either Restrictions on foreign investment Service PSTN-Interconnected VoIP Other Commercial VoIP (PC-to-PC) Non-Commercial VoIP , search, web portals Video Communications Permit Telecom Service Operating Permit VATS Permit none VATS Permit VATS Permit

8 Global VoIP Regs Key Takeaways Other countries often more highly regulated than US Interconnected VoIP is generally regulated Different VoIP services regulated differently (e.g., China and India) VoIP functionality may be regulated even if service is permitted

9 VoIP in a Wireless World VoIP issues for the wireless industry Long term migration to IP by carriers Traditional being replaced by IP transmission Eventual platform for end-to-end voice service Example: LTE VoIP transmission

10 Wireless VoIP Pro and Con Advantages Guarantee quality of service end-to-end Service optimized for wireless and lower cost Example: Avoid third-party interconnect/access charges Difficulties Net Neutrality VoIP application limitations Network and bandwidth management Mobile phone limited capability to download and install mobile VoIP applications

11 Wireless VoIP Regulation - US Intersection of wireless platforms, VoIP applications and Net Neutrality FCC s 2005 Internet Policy Statement access lawful Internet content they choose run applications and use services they choose connect to choice of legal devices that do not harm network competition among network providers, application and service providers, and content managers Subject to reasonable network management

12 Wireless VoIP Regulation (cont.) Skype Carterfone Petition pending at FCC Apply Internet Policy Statement and net neutrality to wireless Device Management Proceedings RCA handset exclusivity request FCC / U.S. Copyright cell phone locking FCC Apple-AT&T inquiry Google Voice VoIP application Broadband Stimulus Package Nondiscrimination and net neutrality attaches

13 VoIP for Global Enterprise Voice Profile of a global enterprise user Wants seamless, reliable, secure VoIP Same look and feel regardless of country in which service is used Travels and wants same number and functionality But there are regulatory constraints! Absolute bans on VoIP, licensing hurdles, compliance requirements

14 Global Enterprise VoIP Constraints Geographic Phone Numbers Limited use outside geographic area E911 Requirements Connection required and call location info transmitted State Security Agency Interception Data Retention Retain VoIP calls and s transcriptions Data Privacy Access recordings/transcripts outside EU, etc.

15 Coping with Global VoIP Constraints Check if particular use triggers regulation Computer to computer VoIP Closed user group VoIP Not two-way VoIP interconnected to the PSTN Potential leeway for corporate users Corporate users vs. residential users Public policy may not require protection of corporate users

16 Coping with Global VoIP Constraints (cont.) Self-providing VoIP customer less regulated Use PSTN / PBX for E911 compliance Maintain PSTN line out of each customer office Routes emergency calls over PBX to PSTN line to emergency provider answering facility Customer Consent to Store / Access Data Permit outside jurisdiction that call was originated or terminated

17 Enterprise VoIP Customers Not as regulated as the provider But may not be legal to use via standard ISP E911 compliance Dealing with Portability and Power Law enforcement cooperation CALEA and call intercept Accessibility requirements

18 VoIP as Data Privacy and data protection rules Monitoring Issues (EU employees, etc.) Recording calls Conferencing Unified messaging Data retention policies Litigation ediscovery

19 VoIP User Geolocation Location matters! Telecom regulation Data privacy Taxes

20 CLOSING COMMENTS Key Takeaways VoIP is becoming ubiquitous Global VoIP regulation is complex and growing Regulators have different reasons behind VoIP regulations Different functions regulated differently Service providers, wireless providers and customers all impacted Regulation goes beyond telecom DATA Supplemental Materials / Appendix

21 Q & A

22 Appendix

23 Supplemental Materials EU Directives/Proposals FCC Internet Policy Statement Skype Wireless Device Petition E911 US State Regulations Synopsis Issues/Features Checklist(s)

24 Japan VoIP Regulation Highly regulated , search, web portals regulated as Former Type 2 Carrier Key factor in regulation may be hosting in Japan. PC-to-PC VoIP Strictly peer-to-peer communications not regulated Otherwise regulated as Former Type 2 Carrier

25 India VoIP Regulation Highly regulated Internet telephony: PC-to-PC VoIP - allowed PC-to-PSTN calls outside India allowed PC-to-PSTN calls within India NOT allowed Video communications similar to treatment of VoIP , search, web portals not regulated

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