Jim Crowe Says Regulators Should Avoid Imposition of Access Charges on VOIP And Complete Reform of Inter-carrier Compensation Regime
WASHINGTON, D.C., December 1, 2003 – James Q. Crowe, chief executive of Level 3 Communications, Inc. (Nasdaq:LVLT), today urged federal regulators to ensure that access charges are not imposed on Voice Over IP, arguing that such fees could forestall the benefits to businesses and consumers offered by the burgeoning technology.
Speaking before a special forum of the Federal Communications Commission, Crowe said regulators should establish interim rules for the exchange of VOIP traffic that avoid imposing legacy access charges until the agency has completed efforts to overhaul the U.S. inter-carrier compensation system.
“Voice-Over-IP providers that originate or terminate communications on IP networks should not be required to begin paying access charges when the FCC has already recognized that the whole inter-carrier compensation scheme must be addressed as part of any sensible proceeding,” Crowe said.
Crowe testified before FCC Commissioners at today’s “Voice Over IP Forum” in Washington. The hearing marked the start of what is expected to be a lengthy process under which the agency examines the various economic and public policy issues raised by VOIP.
Under federal rules in place today, VOIP traffic is generally classified as an information service and exempted from the access charges imposed on traditional telecommunications services. With VOIP technology, voice signals can be digitized, broken down and transmitted as “packets” over IP networks and are, in essence, indistinguishable from other streams of data traffic.
Some industry participants have argued that access charges should be imposed on VOIP traffic, but Crowe said such a move would be ill-conceived.
“Today we have an irrational patchwork, in which charges vary by type of carrier, type of communication, and type of geography,” he said. “It’s simply not a sustainable system. The commission should make clear as a matter of national policy that the de facto status quo will exist until inter-carrier compensation is addressed broadly.”
Level 3 supports an inter-carrier compensation regime that largely eliminates non-cost-based carrier-to-carrier payments.
At today’s hearing, Crowe voiced support for a number of social policies that would enhance Voice Over IP as the technology continues to proliferate:
“The incredible pace of innovation makes change inevitable,” Crowe said. “The only real course is to recognize legitimate public policy goals, while ensuring our country continues to lead the world in communications technology.”
About Level 3 Communications
Level 3 Communications, Inc. (NASDAQ: LVLT), an international communications company, operates one of the largest Internet backbones in the world, connecting 180 markets in 18 countries. The company serves a broad range of wholesale, enterprise and content customers with a comprehensive suite of services including: Internet Protocol (IP) services, broadband transport and infrastructure services, colocation services, voice and voice over IP services, content delivery and media distribution services. These services provide the building blocks to enable Level 3’s customers to meet their growing demands for advanced communications solutions. The company’s Web address is www.Level3.com.
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