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Vonage In The News
Vonage Holdings Corp. Reports Fourth Quarter and Full Year 2013 Results

Carolyn Katz Elected to Board of Directors of Vonage Holdings Corp.

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FCC Chief Warns Of Excessive Phone Regulation


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FCC Chief Warns Of Excessive Phone Regulation

January 10, 2004

By Staff

Las Vegas -- The government should keep its hands off the fledgling Internet telephone industry, the nation's top regulator said yesterday.

"We should start with the cleanest slate possible," said Michael Powell, chairman of the Federal Communications Commission.


He warned that rules designed over the last 100 years to regulate telephone utilities should not be applied to companies such as Edison-based Vonage, which deliver phone calls over fast Internet connections.

Telephone companies have argued that such competitors enjoy an unfair edge. Their signals piggyback on the telecos' infrastructure, yet they don't have to shoulder the costs or pay any fees to subsidize "universal" service for the poor. So they can offer cheaper rates than the Baby Bells. The FCC held a hearing last month on the controversy.

But Powell, speaking at the International Consumer Electronics Show, warned that excessive regulation will drive Internet phone companies overseas and threaten America's position as a technology leader.

Though acknowledging that the issue of universal service needs more study, Powell drew cheers when he asserted: "There ought to be a burden on government to prove why it should regulate something."

The Republican policymaker, whose father is Secretary of State Colin Powell, asserted that voice-over-the-Internet may offer exciting and unexpected features that will benefit consumers in ways that cannot be compared with traditional phone service.

"It's not telephony. It's a voice application," said Powell, an early user of Apple computers and a fan of the company's iPod music player.

Powell also said he doubts the country will meet a 2006 target to switch to all-digital TV broadcasting. Congress has said broadcasters must return their analog frequencies to the government once 85 percent of the U.S. public has televisions capable of receiving digital programming.

Only 8 percent of American homes now have such gear, according to the Consumer Electronics Association. Powell said he is not worried, and disagrees with officials in Berlin who mandated a transition to digital TV in the German capital last year.

"You can't shove new technology on consumers," Powell said



 
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†AK and HI residents pay $29.95 shipping. ††Limited time offer. Valid for residents of the United States (&DC), 18 years or older, who open new accounts. Offer good while supplies last and only on new account activations. One kit per account/household. Offer cannot be combined with any other discounts, promotions or plans and is not applicable to past purchases. Good while supplies last. Allow up to 2 weeks for shipping. Other restrictions may apply.

1Unlimited calling and other services for all residential plans are based on normal residential, personal, non-commercial use. A combination of factors is used to determine abnormal use, including but not limited to: the number of unique numbers called, calls forwarded, minutes used and other factors. Subject to our Reasonable Use Policy and Terms of Service.

2Shipping and activation fees waived with 1-year agreement. An Early Termination Fee (with periodic pro-rated reductions) applies if service is terminated before the end of the first 12 months. Additional restrictions may apply. See Terms of Service for details.

HIGH SPEED INTERNET REQUIRED. †VALID FOR NEW LINES ONLY. RATES EXCLUDE INTERNET SERVICE, SURCHARGES, FEES AND TAXES. DEVICE MAY BE REFURBISHED. If you subscribe to plans with monthly minutes allotments, all call minutes placed from both from your home and registered ExtensionsTM phones will count toward your monthly minutes allotment. ExtensionsTM calls made from mobiles use airtime and may incur surcharges, depending on your mobile plan. Alarms, TTY and other systems may not be compatible. Vonage 911 service operates differently than traditional 911. See www.vonage.com/911 for details.

** Certain call types excluded.

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