Powell has been unequivocal on VoIP: He doesn't want it regulated.
"As one who believes unflinchingly in maintaining an Internet free from government regulation," Powell told the attendees at the hearing, "I believe that IP-based services such as VoIP should evolve in a regulation-free zone."
California's Wood, whose PUC has been attempting to regulate (and tax) VoIP, countered that the arrival of IP telephoning should not exempt the technology from regulation. VoIP has picked up steam slowly over a decade, its adoption slowed initially by poor fidelity and cumbersome equipment. But in recent months, the clarity of calls is often perfect over broadband connections, and standard telephone handsets can be used with the service.
The major telephone service providers, which initially resisted the service, have begun rushing into VoIP in recent weeks. Major telecomm equipment providers led by Cisco Systems as well as a brace of entrepreneurial start-ups have jumped into the fray. That leaves the cable broadband providers. They, too, have started to offer service led by Adelphia, Time Warner Cable. Comcast has indicated that it is examining the phenomenon and is likely to soon offer it to its customers. The cable firms have spent more than $65 billion refurbishing their equipment for the VoIP market.
It also became evident at the FCC meeting that some sticky issues remain to be solved. The FBI is worried that it may be thwarted from listening in on phone conservations on the Internet, disabled people might not have Internet access, and the 911 emergency system could be in limbo. Rural telephone systems will have to find funds to replace the current $6 billion Universal Service Fund.
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