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Viodi View Newsletter - August 9th, 2006

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From VoIP to Net Neutrality to USF – A Regulatory Round-up

By Ken Pyle
[email protected]

Regulatory topics are normally not at the top of what makes it into the Viodi View, as they are reported on in other industry publications. First, there has been an interesting exchange of letters to the FCC from NTCA and Packet8 [both Viodi sponsors at various times] regarding Packet8’s submission of a traffic study in response to the FCC June decision that PSTN-connected VoIP providers contribute to USF. It will be interesting to see how the FCC rules in this case.

Arguing over how to fund USF is a waste of time, according to the report, “Universal Service” Telephone Subsidies: What does $7 Billion Buy? This report didn’t receive much coverage (only mention I found was in CED’s online newsletter) which is surprising considering it suggests some pretty big changes to USF. The study suggests that USF, in its current form, does not meet its objectives of ensuring affordable telephone service for everyone and that it is not very efficient in terms of bringing telephone service to rural areas. The study makes some valid points, however it misses some subtle points that are not seen when looking only at numbers. To see my analysis on this study, click here [Club Viodi Members Only].

Net Neutrality is quickly becoming the third-rail of telecommunications. An overlooked report from the Phoenix Center for Advanced Legal and Economic Public Policy Studies, a Washington D.C.-based legal/economics think-tank, suggests that imposition of Net Neutrality rules could negatively impact the rollout of broadband in rural areas more than it would in urban areas. This, of course, is contradictory to President Bush’s policy goal of ensuring that broadband is available to everyone by 2007.

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