North American Network Operators Group

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Re: US slaps fine on company blocking VoIP

  • From: Thor Lancelot Simon
  • Date: Fri Mar 04 17:49:11 2005

On Fri, Mar 04, 2005 at 01:54:33PM -0800, David Schwartz wrote:
> 
> 	I'm curious how you'd feel if your local telephone company started
> preventing you from calling its competitors. How about if you suddenly

Your local telephone company is a regulated entity.  It's required to
complete your calls regardless of which other carrier they terminate
on.

Vonage has fought tooth and nail to *not* be a regulated entity.  But
now it's turning around and complaining that other non-regulated
entities are employing the same freedom from regulation that Vonage
enjoys in a way that Vonage finds inconvenient.

Meanwhile, Vonage has been pretty much entirely out of service for
the entirety of this afternoon, for all subscribers.  Something very
similar happened yesterday.  If Vonage were a regulated telephone
carrier, it would be subject to millions of dollars of fines --
essentially, the regulatory regime would force it to give back to
its customers the money it will doubtless not give back to them of
its own good will (it would be suicidally stupid business practice
to give it back unless they ask, after all, and most won't ask).

But Vonage has used a complaisant FCC as a stick to beat another
non-regulated entity with in order to force it to behave the way
Vonage wants.

This is all very effective but it does stink to high heaven.  We
can argue about whether it is best to have telecom regulation or
not have telecom regulation, but "exactly as much regulation as
Vonage happens to want, where and when Vonage happens to want it"
is certainly neither equitable nor good.

Thor