Urges Congress to End Regulatory Uncertainty Surrounding VoIP
WASHINGTON, D.C., July 7, 2004 – Ron Vidal, group vice president for emerging opportunities at Level 3 Communications, Inc. (Nasdaq:LVLT), today urged Congress to enact “light-handed” federal legislation that will resolve regulatory uncertainties surrounding Voice over Internet Protocol (VoIP) technology.
“In the absence of clear federal rules, individual state PUCs have begun issuing conflicting rulings on Voice over IP,” Vidal testified at a hearing today. “Congress needs to pre-empt the field on this important issue.”
Vidal provided expert testimony to the U.S. House of Representatives’ Subcommittee on Telecommunications and the Internet. The hearing was entitled: “Voice Over Internet Protocol Services: Will the Technology Disrupt the Industry, or Will Regulation Disrupt the Technology?” The subcommittee, chaired by Rep. Fred Upton, R-Michigan, also heard from eight other executives representing leading U.S. communications companies.
“It wasn’t long ago that VoIP occupied the fringes of the telecom world – as a niche application of interest only to hard-core technologists,” Vidal said in remarks prepared for the hearing. “Recently, however, VoIP has been able to replicate the quality of the public switched telephone network at far lower cost, while delivering new features and functionality not possible over older, legacy network systems.
“But the fate of Voice over IP does not rest with market forces or technology advancements alone. As most members of Congress know, government regulators will exercise significant influence over how VoIP technologies are deployed. I’m confident that technology questions will be answered by the market, but many remaining questions reside in the regulatory arena.”
Vidal urged members of Congress to use “a light hand” as they consider legislation on Voice over IP. “Congress should not force-fit VoIP into outmoded regulatory constructs devised for the PSTN, at a different time in history and to protect consumers from monopolies,” he said. “In particular, the existing inter-carrier compensation regime creates irrational economic incentives that distort the market. In order to truly maximize the benefits of VoIP, a free-market economic model must be put in place.”
But Vidal noted that VoIP service providers have an obligation to support the important social policies that regulators have identified as being in the public interest, including Universal Service funding, E911, access for the disabled and the CALEA wiretapping statute. “It’s entirely appropriate for government to enact rules for VoIP service providers in these important areas,” Vidal said.
“With the history of computing and the Internet as a guide, extraordinary innovations are on the horizon for VoIP,” Vidal said. “For example, we have a vision for how VoIP can improve E911 by providing first responders with more accurate information as incidents develop, in ways that the PSTN simply can’t match. Furthermore, VoIP shows promise as a ‘killer app’ that will drive broadband penetration by enhancing the consumer value of broadband Internet service."
“American companies, entrepreneurs and our capital markets have always been in the vanguard of technology innovation. Today, they are again poised to lead the way in VoIP, with new technologies and applications that will fundamentally change how we communicate. To be successful, however, these innovators and investors require a stable regulatory environment. Remember, our leadership in computers, software and the Internet largely developed with little government regulation. I urge you to treat broadband and VoIP in much the same way. Congress has a real opportunity today to help foster an environment that will ensure the country’s long history of innovation continues with VoIP.”
About Level 3 Communications
Level 3 Communications, Inc. (NASDAQ: LVLT), an international communications company, operates one of the largest Internet backbones in the world, connecting 180 markets in 18 countries. The company serves a broad range of wholesale, enterprise and content customers with a comprehensive suite of services including: Internet Protocol (IP) services, broadband transport and infrastructure services, colocation services, voice and voice over IP services, content delivery and media distribution services. These services provide the building blocks to enable Level 3’s customers to meet their growing demands for advanced communications solutions. The company’s Web address is www.Level3.com.
"Level 3 Communications,” "Level 3," the red 3D brackets and the Level 3 Communications logo are registered service marks of Level 3 Communications, LLC in the United States and/or other countries. Level 3 services are provided by wholly owned subsidiaries of Level 3 Communications, Inc. Any other service, product or company names recited herein may be trademarks or service marks of their respective owners.
Forward-Looking Statement
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