THE FUTURE IS CALLING

1
THE FUTURE IS CALLING

• How VOIP Will Benefit Consumers Our Nation IF
  Policy Makers Get It Right

2
THE PACE OF CHANGE IS ACCELERATINGThe Broadband
Revolution Is At Hand
Years to 25 U.S. Adoption
Source McKinsey
3
BROADBAND REVOLUTIONIP-Enabled Services Run the
Gamut

• VOIP is lot more than POTS!

4
HOW VOIP WILL BENEFIT CONSUMERS BUSINESSES

• COST SAVINGS
• 40-60 for consumers (Detroit News)
• 1/10th - 1/30th for businesses (Precursor)
• 3-10B governments (Alexis de Toqueville
  Institution)

• APPLICATIONS
• Leverage Convergence
• Seamless Relocation
• Find me / Follow me
• Web-based

• CHOICES
• New services
• New competitors
• Virtuous cycle

5
HOW VOIP WILL BENEFIT OUR NATION

• PRODUCTIVITY
• Cost Reduction
• Process Improvement (e.g. Telework)
• Efficiency Reliability (9/11)

• BROADBAND
• KILLER VALUE BB VOIP is 8/month cheaper than
  Narrow band POTS (Parks Associates)
• KILLER APPLICATIONS

• INNOVATION
• New firms, new software, new hardware
• More flexible open platform onto which
  developers can add

6
TWO MODELS COLLIDINGWhere Should VOIP Go?
VOIP at the Crossroads of Digital Convergence
Telecommunications
Information Technology

• Heavy Regulation
• Slow to Change
• Monopolistic
• Subsidized

• Minimal Regulation
• Rapid Innovation
• Competitive
• Market-Driven

PRICE
PRICE
If it moves, tax it. If it keeps moving,
regulate it. If it stops moving, subsidize it!
Hands off the Internet!
7
VOIP THE GOVERNMENT
Though government mandates often hinder more than
help!!
8
LEGACY RULES WILL HINDER VOIP DEPLOYMENT
ADOPTION

• Existing Regulations are disincentives for
• emerging technologies
• competitive offerings
• rural deployment
• Regulatory creep leads down slippery slope
• email tax? IM?
• software tax? Xbox?
• Broadband tax?
• Hands Off Bias Adds Pressure for regulatory
  reform
• The World is Watching and other leaders are
  emerging

9
THERE IS A PATH FORWARD

• First Do No Harm
• Technology is still new, deployment still
  emerging
• Hands Off default remains prudent
• Revisit Regulatory Regimes of 20th Century
• Less regulation, more centrally administered
• Reform access charge subsidy scheme
• Review Social Policy Objectives
• Fix Universal Service First (before extending to
  VOIP)
• Consider ways to use new technologies to meet
  goals