APCO CONCERNED BY FCC VoIP DECISION < Click here additional information

The Federal Communications Commission (FCC) today declared that Internet telephony service, such as that offered by Vonage and others, is not subject to traditional state public utility regulation.

            While the ‘official’ order is not expected to be released until later this week or early next week, there were numerous 9-1-1 related comments made during the open meeting and in released information including an FCC news release, along with written comments from the Commissioners.

Stressing that the decision, “does not signal Vonage may cease its efforts to develop workable solutions regarding E9-1-1,” the FCC news release stated, “The Commission looks forward to addressing public safety issues comprehensively, with the participation of our state and local colleagues, in the broader IP-Enabled Services Proceeding.”

Advising that the ruling also applies to other types of similar IP-enabled services, including those offered by cable companies and others, it was stated that the service “cannot practically be separated into intrastate and interstate components.”  Customers can use their phones from a broadband connection anywhere in the world.

Cautioning that ongoing work resolving E9-1-1 and VoIP should proceed, Chairman Michael Powell stated, “With regard to critical 911 capability for VOIP, I note already that several Internet voice providers have entered into an agreement with the National Emergency Number Association to extend 911 capabilities to Internet voice services to ‘promote a fully functional 9-1-1 system that responds any time, anywhere from every device.’   Efforts such as these are essential to educating policy makers and providing a basis for solutions to complex technical problems.  These can and will serve as models for VOIP.”

He and other Commissioners stressed that there would be an important role for states regarding VoIP and E9-1-1 implementation going forward.

“We should adopt rules to the extent necessary to ensure the fulfillment of our core policy goals, including access to E911, the ability of law enforcement to conduct lawful surveillance, access for persons with disabilities, and the preservation of universal service,”  stated Commissioner Kathleen Abernathy. Regarding commenters’ concerns that the Commission should resolve outstanding questions such as access to E9-1-1, she stated that because of several states deciding to impose utility regulations on VoIP services and the ensuing litigation, it was imperative that the Commission ‘establish our exclusive jurisdiction as the first order of business.”

Expressing concerns about today’s action, Commissioner Michael Copps stated “We need a framework to explain the consequences for homeland security, public safety and 911.” 

Commissioner Jonathan Adelstein stated, “I also have reservations about our preemption of a State’s efforts to ensure the public safety of its citizens, based here on the linkage of the 911 requirement with a State certification.”  He added, “Our (FCC) approach of overriding States’ public safety efforts without clear federal direction takes us into a dangerous territory in which consumers may come to rely on services without the benefit of the critical safety net that they have come to expect.”

In a press conference following today’s meeting, Jeffrey Carlisle, the FCC’s Wireline Bureau Chief, pointed out that today’s action does not preclude states from implementing taxes on such services nor from enforcing consumer protection rules such as those to false advertising (giving an example that if a company stated it offered 9-1-1 with customer location being delivered and it did not do so).

The Commission’s Memorandum Opinion and Order specifically concerned a Vonage petition to it for a declaratory ruling regarding its VoIP (DigitalVoice) service in Minnesota.

In 2003, the Minnesota Public Utilities Commission ruled that Vonage was required to obtain a certificate of authority in order to do business in that state. One requirement for that certificate was that Vonage provide emergency 9-1-1 service comparable to that provided by incumbent phone companies.

That decision was next overturned by a federal court ruling which declared the Vonage offering was an ‘information service” rather than a “telecommunications service.” The court decision barred the Minnesota PUC from imposing any telephony certification requirements, including those related to 9-1-1 service.

That federal court action was appealed by the Minnesota PUC. Today’s action helps establish an official FCC position in the appealed case.

The case is on the docket of the U.S. Court of Appeals, 8^th Circuit; November 17 in St Paul, MN.

NENA has filed formally regarding Voice over Internet-Protocol at the Federal Communications Commission under WC 04-36 docket.