Regulators Should Keep Hands Off VoIP, Industry Group Says: Page 2 of 3

"The government needs to give VoIP some time to grow as a service to see how it's going to be used," Schoolar said. "We need to let end users determine what the services will eventually be before the government steps in and sets regulations."

VON believes the FCC should be the only government body regulating VoIP to avoid a mishmash of regulations that would result if separate rules were imposed by individual states.

In setting standards for 9-1-1 emergency services, VON prefers to develop the technology in conjunction with the National Emergency Numbering Association, a non-profit group dedicated to the study and implementation of 9-1-1 across the nation.

VON is also advocating an overhaul of the government's Universal Service Fund. Telephone companies collect the fee from customers and the money is used to pay for telephone service in rural areas and to bring Internet service to schools and libraries. What customers pay today is determined by the number of minutes used in long-distance calls. VON favors a flat rate based on either the phone connection or telephone number.

VoIP as an alternative to traditional telephone service has gained corporate interest, as the Internet becomes the universal transport for all voice, data, and video communications worldwide. Packet networks are less expensive and more scalable than are traditional circuit-switched telephone networks, and naturally integrate with Internet-based applications.