Ofcom consultation announced for Voice over Internet Protocol

Ofcom is inviting views and comments on the issues raised in the VoIP consultation to be made by 5pm, 3 May 2006. The consultation will be relevant to all providers of VoIP services. Ofcom expects to make a statement in relation to the responses in August 2006. Ofcom published interim guidance in 2004, but since then the choice of providers and the range of services offered has increased, whilst equipment has also developed significantly. There are now an estimated 500,000 VoIP users in the UK. The technology is becoming increasingly recognised by the public, yet at present no one single combination of equipment, features or business model has emerged. Because of changes in the technology, market and regulatory developments, Ofcom’s previous 2004 proposals now need to be reassessed, and this is the purpose of the consultation. Generally, the consultation addresses how different types of VoIP services should be regulated to ensure that consumers’ interests will be best protected.

Ofcom is inviting views and comments on the issues raised in the VoIP consultation to be made by 5pm, 3 May 2006. Ofcom expects to make a statement in relation to the responses in August 2006. Generally, the consultation addresses how different types of VoIP services should be regulated to ensure that consumers’ interests will be best protected.

Ofcom published interim guidance in 2004, but since then the choice of providers and the range of services offered has increased, whilst equipment has also developed significantly. There are now an estimated 500,000 VoIP users in the UK. The technology is becoming increasingly recognised by the public, yet at present no one single combination of equipment, features or business model has emerged. Because of changes in the technology, market and regulatory developments, Ofcom’s previous 2004 proposals now need to be reassessed, and this is the purpose of the consultation.

VoIP services change the way voice services are delivered. The services will typically use a broadband connection to provide voice calls using VoIP technology via a PC with handset/headset or a special adaptor connected to a traditional telephone handset. There are substantial potential consumer benefits through reducing the cost of delivering existing services, enabling new services and therefore increasing competition.

Main objectives

The 3 main objectives for Ofcom are:

1. to avoid creating and/or removing barriers to the development of VoIP services - i.e. enabling innovation in a technological neutral way;

2. to ensure that consumers are well informed about their options and have a clear understanding of features and capabilities especially in relation to 999 access to ensure consumer confidence; and,

3. to maximise the availability of 999 access.

Scope and key proposals

The consultation will be relevant to all providers of VoIP services (whether or not they provide ‘publicly available telephone services’, known simply as PATS) as well as end-users, subscribers/consumers and other stakeholders interested in the effectiveness of VoIP regulation. The key proposals are:

1. to establish guidelines on how Ofcom will investigate potential contraventions of obligations in relation to network reliability and emergency calls, to aid transparency and understanding of the requirements and increase the incentive for VoIP services to offer 999 access;

2. to discontinue Ofcom’s interim policy for number portability (i.e. the right to retain a phone number independently of the person providing the service) which allowed a communications provider to restrict number portability to those PATS providers who were not complying with PATS obligations under the interim forbearance policy;

3. to modify General Condition 18 (on number portability) to clarify the availability of number portability rights to consumers of services using receive only geographic and non-geographic numbers and increase the incentive for VoIP services to offer 999 access;

4. to specify the information that providers must offer their customers to ensure customers are well informed of the capability of VoIP services and a proposal to mandate this code in respect of certain providers;

5. a planned approach to encourage and enforce the maximum level of compliance by providers of VoIP services; and,

6. a planned approach to monitoring and reviewing so that as the market and technology develops regulation can be quickly adapted to meet consumers, particularly the need to maintain widespread availability of high quality 999 access.

Also the below 2 measures have immediate effect:

1. the discontinuance of Ofcom’s interim forbearance policy for VoIP services to ensure compliance with Community obligations under the relevant European Community directives; and

2. the withdrawal the Essential Requirements Guidelines given the inappropriate nature of these guidelines for VoIP services and for Next Generation Networks (NGNs). It was felt that it was an unnecessary restriction to the way in which new VoIP services are provided (amongst other reasons).

Ofcom intends to make a broader review of the effectiveness of general conditions in relation to network integrity, location, disaster/emergency planning, numbering and number portability.

In addition the consultation also looks for opinions in relation to naked DSL, blocking of VoIP calls, routing/termination, crime detection/prevention, SPAM, extraterritoriality of VoIP service providers and privacy and encryption.

There are 37 questions on the above issues to be answered in response to the consultation. To view the response sheet, please click here.

Should you require any further information on the consultation or VoIP in general we would be happy to advise you.