FCC Chair Wants VoIP Free of State Control

October 20, 2004
Federal Communications Commission Chairman Michael Powell is taking a passionate stand on freeing the emerging telecommunications technology of Voice over Internet Protocol (VoIP) from state regulation.

In a speech in Boston, Powell paraphrased Revolutionary War hero Patrick Henry as he called for keeping VOiP free from state regulation.

"For VoIP, I say give it liberty," Powell said.

With VoIP service, consumers can place telephone calls that are routed through Internet connections. No only are there no long distance charges for calling someone across the country, calls around the world could also be toll-free.

The chairman told his audience at a technology conference that he intended to bring the system of Internet phone service under federal jurisdiction, but gave no date for his plan to bring the issue of VoIP to a vote. He did, however, indicate that it would be soon.

"Like the founding fathers, we have to decide where we stand. We cannot avoid this question any longer. Bold action is needed," he added.

Powell pointed the decision by the government early in the 20th century to all the Bell Company to establish a monopoly in telephone service. Mindful of history, the chairman said he was not going to be the government official who makes that mistake again.

Powell said other issues remain as hurdles for VoIP, including the issue of inter-carrier compensation. Calling the current setup a Byzantine set of fee scales, he said the government should move quickly to reform the system under a national structure. Industry leaders say these and other issues need to be addressed before VoIP can fully develop.

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