In what may be a decision that could affect all of us, the Federal Communications Commission has ruled that local telephone companies must connect Internet-based calls shuttled over broadband lines owned by wholesalers like Sprint Nextel and Verizon Communications. Initially, this ruling affects only South Carolina and Nebraska as state regulators in those two state had decided that local phone companies did not have to connect calls originated by Voice-over-IP (VoIP) and cable phone companies. But, in fact, this ruling affects the entire nation.
FCC Chairman Kevin Martion said the two states had misinterpreted federal telecommunications law. "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," Martin said in a statement.
This ruling makes it absolutely clear that Internet-base phone services such as Vonage, Packet8 (our home phone carrier), and other similar phone services put together by large cable companies such as Time-Warner and Comcast must be allowed to make use of standard phone lines to complete their calls.
On a personal note, long-time readers know that Susan and I switched over a few years ago to IP telephony and save a ton of money every year and the service is just fine. I personally have no love for the large old-time phone companies that thought they "ruled the roost" and am glad that the FCC is making it easier for new competition to enter the market.
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