Court Backs FCC on VoIP Regulation

Ted Hearn (3.21.07)
http://www.multichannel.com/article/CA6426491.html

The court backs FCC in keeping telecommunications laws from applying to VoIP providers.

A three-judge panel of the U.S. Court of Appeals for the Eighth Circuit Wednesday upheld Federal Communications Commission rules that banned states from applying their telecommunications laws to a class of voice-over-Internet-protocol providers, such as Vonage Holdings.

The court concluded that the FCC acted reasonably in pre-empting state regulation and that the agency could assert its jurisdiction without first having to determine whether VoIP is an information service or a telecommunications service as those terms are defined in federal law.

The FCC’s rules were adopted in late 2004 under former FCC chairman Michael Powell, who wanted to shield nascent VoIP providers from complex and inconsistent state regulation. Minnesota’s effort to regulate Vonage triggered Powell’s moves at the FCC.

There is still a question about whether IP video should be treated as a traditional cable service subject to local franchising authority or whether it’s not a service subject to Title VI in the same way that voice-over-IP isn’t traditional telecommunications subject to all of the [common-carrier] regulations,” Martin told a telecommunications forum.

“I think the decision [that] will come out of that [Vonage] case will be critical in trying to craft whether or not the commission’s authority to deal with all of these IP services will continue to be affirmed,” he added.

More reading:

Judges Back FCC Over Attempts To Regulate Internet Phones (Provides a nice history of the ruling)

FCC Asked To Keep Hands Off IP Video

John Eggerton (3.20.07)
http://www.broadcastingcable.com/article/CA6426258.html?display=Breaking+News

Network 2 has petitioned the FCC to stand down on IP Video regulation.

Whether or not IPTV is left unregulated will effect the direction of television broadcasts in the future.

Internet TV company Network2 has asked the FCC to declare the commission has no authority to regulate video over the Internet.

The company has asked for an FCC ruling that its IP Video service is free of Title III regulations--broadcast regulations rooted in the scarcity argument--and Title VI regulations--multichannel video regulations rooted in the "gatekeeper" argument. Neither apply to Internet video, the company argues.

Jeff Chester, executive director of the Center for Digital Democracy, says such a ruling would be premature. "Multiplaform access rules will be needed for political speech on mobile and IPTV platforms," he says. "Rules protecting news and public affairs and advertising safeguards will be needed, including protecting children," he said.

Ericsson: Tandberg Is Key to IPTV

Ray Le Maistre (3.9.07)
http://www.lightreading.com/document.asp?doc_id=119124&site=cdn


Ericsson is looking to purchase Tandberg Television and secure a hold in the IPTV market.

The successful acquisition of Tandberg Television would help Ericsson play catchup with some of its main telco TV rivals in terms of technology, customers, and deployment experience, says one of the executives behind the bid for the encoding systems specialist.

In addition to the high-capacity video encoding and compression systems for which it is best known, Tandberg TV also has important applications-focused technology, such as headend-based advert insertion capabilities.

Those capabilities would significantly bump up Ericsson's portfolio in terms of video-specific technology, integration experience, and reference customers, areas where Ericsson has some catching up to do.

Ericsson has also been working with its mobile handset partner, Sony Corp. , to develop IPTV user interfaces that "have the same look and feel as the Sony Playstation in terms of the look and feel for navigation. We're going to do a lot of customer research to find out exactly what consumers want."

All eligible for TV converter discount

Rachelle Youglai (3.12.07)
http://www.reuters.com/article/technologyNews/idUSN1235374420070312

Funding dollars are being allocated to keep free television free. This has implications mainly on low income families and broadcast emergency services.

All U.S. households with televisions that use analog technology will be eligible for $40 discount coupons to buy digital converter boxes, the Commerce Department said on Monday.

U.S. television stations are required to switch to only digital broadcasts by February 17, 2009. An estimated 20 million households now rely solely on free over-the-air television.

Some industry sources have estimated the price of a converter box could range between $50 to $60.

All households will be eligible to request up to two $40 coupons to be used to buy up to two digital-to-analog converter boxes until the $990 million program is exhausted. At that point, Congress could approve another $510 million for the program, but the discount coupons would be limited to households that rely on over-the-air analog TVs.

What the Verizon Verdict Means for Vonage

Olga Kharif (3.9.07)
http://www.businessweek.com/technology/content/mar2007/tc20070309_887320.htm?chan=technology_technology+index+page_today%27s+top+stories
887320.htm?chan=technology_technology+index+page_today%27s+top+stories

More on Vonage patent lawsuit, the larger implications for Vonage.

After a weeklong hearing in the U.S. District Court for the Eastern District of Virginia, a jury ruled that Vonage Holdings must pay Verizon Communications $58 million in damages and a 5.5% licensing fee per subscriber per month. Vonage's costs per line would increase by about $1.6 per subscriber, or almost 20%.

The company's stock fell 3.86%, to $4.85, an all-time low, the day the verdict was announced.

With its financial position corroded, Vonage, long rumored to be shopping around for a buyer, could finally become cheap enough for an acquisition by a cable company, or even a telco like Verizon, whose VoiceWing Web-calling service has so far failed to take off. Indeed, Verizon's 19-page complaint notes: "Vonage's expanded marketing and advertising of its infringing services threaten to shift more customers and goodwill to its business at Verizon's expense"

This decision carries huge implications for the $4.4 billion U.S. VoIP-services industry as a whole. "The message this sends to the VoIP industry is, if you build a patent portfolio, it helps you negotiate in these situations," Rabena. The number of VoIP-related lawsuits mounted by telcos and other entrenched players could rise. According to the U.S. Patent & Trademark Office, there are 2,273 patents related to VoIP, many of them belonging to telecom old-timers like Verizon, AT&T, Motorola, Broadcom, and Cisco.

And that spells more trouble ahead for small Web-calling service providers looking to retain their foothold on the market. In his closing arguments on Mar. 7, Vonage's lawyer said, "this case is about choice." Thanks to the Verizon victory and other potential legal action in the future, the choices for Vonage will be far fewer.

Vonage to pay $58 million in Verizon patent case

Marguerite Reardon
http://news.com.com/Vonage+to+pay+58+million+in+Verizon+patent+case/2100-1036_3-6165747
.html?tag=html.alert


Internet phone provider Vonage has been ordered to pay $58 million to Verizon Communications for infringing on three of the company's patents.

Vonage, which provides a service that turns broadband connections into phone lines, was found by a Virginia jury to have infringed patents that cover the technology used to connect these VoIP calls to the regular phone network, as well as some features for implementing call-waiting and voice-mail services.

The monetary damages and the ongoing royalties awarded Verizon could have a significant impact on Vonage, if it doesn't come up with a solution that doesn't infringe the patents. The Internet phone service provider has yet to turn a profit.

But the biggest risk for Vonage is that the company could also be forced to shut down its service. In addition to the damages, Verizon is asking the court for an injunction. On March 23, U.S. Judge Claude Hilton will hear arguments to decide whether Vonage's service should stop offering service until an acceptable licensing agreement can be worked out. Vonage said in a press release that it doesn't expect any interruption in service.

"Even though the damages could have been worse, the royalty fees and ongoing legal battle, will add more expenses," Moran said. "And that could impact the future profitability of the company."

FCC rules speed telco video

Carol Wilson (3.5.07)
http://telephonyonline.com/home/news/FCC_video_rules_030507/

FCC finalized rules to speed up the local franchising process to a 90-day cap with mixed reactions.

The Federal Communications Commission today issued new rules designed to speed up the local video franchising process. The rules set a 90-day limit on the local government’s decision and prohibit extraordinary requests for deployment of hardware or for tying in of unrelated requests.

Major telecoms are excited about the news stating it will provide choices and create competition. FFC chairman Martin claims this increased competition will fight rising cable costs. Democratic Commissioner Michael Copps said the rules failed to promote genuine broadband competition and said he favored a provision which would have retained local franchise authority rights to impose specific build-out requirements and public programming.

Republican Commissioner Robert McDowell said, however, that the new policy seeks to address both sides of the issue. “This order strikes a careful balance between establishing a de-regulatory national framework to clear unnecessary regulatory underbrush, while also preserving local control over local issues,” he said.

The new rules may also face a legal challenge, either from the cable industry or groups representing local governments.

The FCC has agreed to announce within six months whether the 90-day rule will apply to incumbent cable operators that are seeking to renew their local franchises.

Further reading:
http://www.multichannel.com/article/CA6421729.html?display=Breaking+News

VoIP strives to co-exist with alarm systems

Joan Engebretson (3.5.07)

Leading alarm installing companies - ADT and Brinks Security Systems - have started making arrangements with VoIP providers to solve incompatibility issues.

Current alarm systems do not work with VoIP services, forcing customers to choose one or the other. This is more evidence that companies and legislation are working to meet the demand for diverse broadband services.

About 25 million alarm systems have been installed nationwide, according to Gordon Hope, general manager of Alarmnet, a unit of security manufacturer Honeywell. Comcast, which uses VoIP for the Digital Voice service that the company offers over its cable network infrastructure, estimates that 25% of Digital Voice customers have alarm systems. Potential incompatibilities between VoIP and alarm systems are fourfold.

Issues that need addressing are: the results of a power outage, home wiring often needs updating, customer service conflicts, and network stability.

To date, ADT’s and Brinks’s acceptance of VoIP seems to be the exception, rather than the rule within the alarm industry. The NBFAA it still seeking a legislative solution, and John Chwat, NBFAA director of government relations, expects to get several provisions written into any telecom bill proposed this year. Some of these provisions—including a requirement that VoIP providers contact customers’ alarm companies if VOIP is installed--simply codify what many providers already are already doing. But another requirement—to provide 24-hour battery backup—could add substantially to the cost of VoIP service. Today, even VoIP providers that offer battery backup typically only provide it for a few hours.

FCC Clarifies VoIP-PSTN Interconnection Rules

Tom Tovar (3.7.07)
http://www.convergedigest.com/Bandwidth/newnetworksarticle.asp?ID=20786

The FCC has passed a petition that will allow CLECs to connect with ILECs.

Opens up choice and potential for broadband voice communications.

FCC granted a petition from Time Warner petition that clarifies rules of how voice traffic can be exchanged between broadband providers and the PSTN. By granting the petition, the FCC affirmed that competitive local exchange carriers (CLECs) are entitled to interconnect with incumbent local exchange carriers (ILECs) pursuant to section 251 of the Telecommunications Act for the purpose of exchanging traffic on behalf of VoIP-based service providers.

FCC Chairman Kevin Martin stated: "Our decision will enhance consumers' choice for phone service by making clear that cable and other VoIP providers must be able to use local phone numbers and be allowed to put calls through to other phone networks."

Other noteworthy aspects of the ruling:

• It doesn't apply directly to VoIP providers, therefore not giving them their own interconnection rights, but CLECs can provide them wholesale interconnection.
  

• CLECs must provide number portability to VoIP providers.
  

For further reading:
http://www.telecomlawblog.com/fcc-daily-fcc-order-clarifies-interconnection-rights-of-
carriers-serving-voip-providers.html

Don’t Don't Apply 1968 Telecom Rule to Wireless, Says AT&T

Drew Clark (2.26.07)
http://www.drewclark.com/2007/02/dont-go-back-to-1968-telecom-rules-says.shtml

AT&T and Verizon talk about national broadband and wireless regulation while speaking at the Technology Policy Summit.

This is the beginning of a potential push toward national broadband, which if instituted would force changes in legislation, and shift the focus of municipal wireless projects.

AT&T’s Senior Vice President Jim Ciconni has acknowledged a need for national broadband. “We don’t have a national broadband policy, we have never had a broadband policy, and, given the importance of competitiveness, we should have one,” said Ciconni.

However, Tom Tauke, Verizon Communications Executive Vice President countered by saying “a national broadband policy would do more harm than good." But he encouraged government-private sector collaboration to obtain more data about broadband deployment.

Tauke referred positively to KetuckyConnect, an effort to compile statistics about regional broadband deployment. The government could provide subsidies and loans for deploying broadband in rural areas that enjoy a lesser degree of broadband deployment, he said.

They also discussed wireless regulation, with Ciconni claiming that things have changed since the carterphone, saying “there are a plethora of carriers and a wide variety of devices that are available” on wireless networks, thus any rule that hearkens back to 1968 will be rejected.

Faster WiMax on the Way

Dan Jones (2.14.07)
http://www.unstrung.com/document.asp?doc_id=117363


Wireless at 1-Gbit/s fixed and 100-Mbit/s data transfer rates is on the way dubbed 802.16m


The Institute of Electrical and Electronics Engineers Inc. (IEEE) has started working on a new version of the 802.16 standard -- the technology that WiMax is based on -- that could push data transfer speeds up to 1 Gbit/s while maintaining backwards compatibility with existing WiMax radios.

The muscle behind 802.16m will be multiple-input/multiple-output (MIMO) antenna technology on top of an OFDM-based radio system just like the upcoming "Wave 2" mobile WiMax products being plotted by several silicon vendors. The Wave 2 profile, which is being championed by Sprint Nextel Corp. is expected to achieve mobile speeds of around 5 Mbit/s by using a two-by-two antenna array. 802.16m could up those speeds, in part, by using larger antenna arrays.

The move to develop a faster spec comes even before products based on the current mobile WiMax specification are generally available. This once again indicates the way certain parts of the industry are trying to aggressively push WiMax forward as the only the possible choice for future 4G networks.

House Dems Eye Telecom Review

David Hatch (2.27.07)
http://www.njtelecomupdate.com/lenya/telco/live/tb-MJSN1172609975538.html

House Democrats are planning a thorough re-examination of telecommunications and media policies that will feature multiple oversight hearings and fresh legislation.

These re-evaluations could change current broadband regulations for local franchising,

Fostering high-speed Internet deployment, ensuring an open and accessible Internet, and overhauling the federal universal service program that subsidizes telecom connections in rural and impoverished areas are among the key issues to be addressed. The competitiveness of the video, telephone and radio marketplaces also will be explored, along with protecting the privacy of phone records and promoting efficient use of spectrum.

A Feb. 15 FCC oversight hearing before the House telecom subcommittee was postponed. It has not yet been rescheduled. House Democrats plan to scrutinize several FCC policies, include the agency's review of media-ownership limits and its authority to investigate allegations that the National Security Agency conducted surveillance of phone records without warrants.

Also to be examined is a recent FCC decision relaxing local video-franchising guidelines. State regulators have complained that the new rules usurp their authority. Replacing local franchises with less cumbersome national agreements was the centerpiece of Republican deregulatory legislation last year, but it stalled after its Senate counterpart became mired in controversy.

Verizon expands 50-Meg footprint

Brain Santo (2.27.07)
http://www.cedmagazine.com/article/CA6419926.html

Verizon expands 50 Mbps in 6 of its 16 state FiOS coverage.

The six states where Verizon's 50 Mbps tier is now available are Connecticut, Florida, Massachusetts, New Jersey, New York, and Rhode Island. Other FiOS markets will get the tier this year.

The mid-tier maximum connection rates in those six markets was increased from 15 Mbps downstream and 2 Mbps upstream to 20 Mbps down and 5 Mbps up, while the top-tier service was increased from maximums of 30 Mbps down and 5 Mbps up to 50 Mbps down and 5 Mbps up.

Verizon said that more than 6 million homes and businesses in parts of 16 states are now passed by its fiber network, but it declined to say how many of those could subscribe to the 50 Mbps tier. The TV franchise agreements Verizon has struck in the Tampa area cover only a few thousand households.

Report: VOIM Sounds Better Than PSTN

Mark Sullivan (2.23.07)
http://www.lightreading.com/document.asp?doc_id=118017


A recent study has found that voice over IM services such as Skype, Yahoo, and Google provide higher quality more realistic quality sound than TDM-based phone services.

More support for IP telephony, and that traditional phone carriers will have to start making adjustments as interest grows in what VOIM can offer.

The codecs used in TDM-based voice systems cover an 8kHz band directly in the middle of the voice frequency range, explains Global IP Sound AB CEO Gary Hermansen.

By contrast, Hermansen says, new IP codecs cover a 16kHz swath of the frequency range, which better conveys the highs, lows and texture of a caller's voice. Hermansen says VOIM codecs can also compensate for packet loss, and cancel out echo and background noise.

The end result is that VOIM makes the human voice sound more, well, human than traditional telephony ever did.

"Carriers will ultimately need to reconcile traditional telephony with VOIM as they face increasing pressure from their customers to receive the same types of flexible services" that VOIM enables, report writer John Longo writes.