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VoIP and the Universal Service Fund

December 14, 2005

There has been a good deal of buzz on the net regarding Kevin Martin's comments on forcing the VoIP industry to contribute to the Universal Service Fund (USF). There are many things that concern me with these comments.

The USF has been plagued with scandal and worse, who is really sure where this money goes? There are so many loopholes in the system that corruption was a problem waiting to happen. Worse, a lot of LECs benefit enormously from the fund and potentially use this money to lobby against having telecom competition.

So the government is forcing taxpayers to contribute to a fund that kills competition. I am not sure I get the logic here.

Mr. Martin is reported as saying all phone numbers should be paying into the fund regardless of underlying technology. As soon as this happens there will be a massive push to ENUM and people will bypass phone numbers altogether. We really don't need phone numbers and taxing them is illogical.

Worse, are we going to tax US based numbers? All phone numbers? If we tax US based numbers then how many people will switch their phone numbers to international numbers? How will we police this?

The world is changing. VoIP is changing it and the old rules don't apply. Making blanket statements about phone numbers in a world where phone numbers have less and less meaning will just push the market further and faster away from phone numbers. Then what do we do?

The answer is to get the money from broadband providers and not try to tax individual services over the lines. Another idea is to get the money from somewhere else altogether. Lower telecom rates are good for consumers and trying to skim money from an industry that can't support it is bad business. With all due respect to Chairman Martin, these comments show he is thinking about the market as it exists today and not as it will soon exist tomorrow. I am 100% against forcing VoIP providers to contribute into a potentially corrupt fund. VoIP is now just an application and doesn't require or deserve any special government penalties.

Off To Interop

December 14, 2005
Well I think they sent us members of the press a letter asking us to refer to this event with a New York suffix. Anyone who might be unsure this event is in NY might just want to step outside for a few minutes to enjoy New York's bone-chilling single-digit winter temperatures.

As I commute from Connecticut I can't help but recall the weather in NY is usually warmer than ours by 5 or so degrees. I can use every one. I take the train into the city and shared a nice 10 minute wait outside for the lumbering mass transit vehicle with other red-faced (wind burned) passengers.

The weather reminds me that my family has been sick for a few weeks and I hope the weather coupled with some virus that seems to have staying power don't combine to allow me to be inflicted with the same malady.

For the record I am popping my vitamins to help ward this thing off.

As I sit on this hot and cramped train bound for Grand Central Station I can't help but reflect on all the exciting things happening at TMC. In January ITEXPO moves to Ft. Lauderdale, FL. The attendance is already super-strong for this event.

In addition SIP Magazine launches in print this same month followed by IMS in print in February. TMCnet also has some huge news to share next week.

Our company has further been on a hiring spree to keep up with our massive growth. Internet Telephony Magazine continues to be one of the fattest magazines in technology and easily dwarfs all other telecom publications. ITEXPOs routinely grow at 100% per year as well. Finally TMCnet is routinely attracting more than 700,000 unique visitors per month.

As we close out on what has to be the best year in VoIP ever I would like to say thanks to all of our loyal readers and advertisors/exhibitors. Many of you stood by TMC when VoIP was a pipe dream in the mid-nineties. I don't know if you believed me when I said this market would be huge but at least you kept reading :-)

Furthermore I would like to wish everyone a very happy holiday season. I hope you and your families stay safe, warm and have a life filled with accomplishments and devoid of regrets.

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