Rallying for unregulated Internet telephony, Netscape
Communications, Inc. and its development partners, InSoft Inc. and Voxware
Inc., have responded to a petition presented to the FCC
by the America's Carriers Telecommunication Association (ACTA) to regulate
and tax netphone software providers. The FCC ruling on the matter will have
far-reaching effects on worldwide communications via the Internet.
Netscape response
claims that ACTA's petition
is nothing more than an attempt to squelch new business opportunities. In
a formal filing with the FCC, Netscape asks that the FCC (1) Refrain from
regulation in order to allow for the growth of new online ventures; (2)
Preempt state public service commission regulatory authority over the Internet
as Internet communications are interstate and the Telecommunications Act
of 1996 discourages such regulation; and (3) Promote a competitive, deregulated,
international telecommunications environment.
The core issue of the debate is whether Internet telephony companies can
be regulated as telecommunications providers, or whether they fall into
the category of "enhanced" information services, which are excluded
from FCC regulation under the 1996 Telecommunications Act.