A major telecommunications battle is gathering intensity this summer over whether the Internet can be used for realtime voice transmissions. On one side is the America's Carriers Telecommunications Association (ACTA), a group of 130 long-distance resellers who want only those carriers who are regulated and tariffed by the Federal Communications Commission (FCC) to provide voice transmissions. On the other side are the "Voice on the Net" (VON) Coalition and other parties who advocate the free use of the Internet for all voice, video and multimedia transmissions. Both sides have presented arguments to the FCC, with the first round apparently won by the VON Coalition and its supporters.
The dispute is based on the growing availability and low cost of computer telephony hardware and software. This technology enables two persons to talk to each other over the Internet anywhere in the world. The sound quality may be poor and connections are sometimes a problem, but these technical problems are being resolved. In the meantime, Internet telephony means that users can enjoy what amounts to a long-distance phone call at a fraction of the cost charged by long-distance carriers.
Naturally, long-distance carriers are concerned. On Mar. 5, 1996, ACTA petitioned the FCC to stop companies from selling telephony software and hardware products, citing unfair competition. ACTA argued that the average Internet service provider (ISP) charges $10 for five hours of access, plus $3 for each additional hour. That equals 3.3 cents per minute, compared to an average charge of 22 cents a minute by a telephone carrier. ACTA also expressed concern that the growing number of telephony calls with their high bandwidth requirements would swamp a telecommunications infrastructure that is already overburdened with Internet traffic.
In reply, the VON Coalition (with a number of joint parties) filed a petition on June 11, asking the FCC not to ban Internet telephony. The joint parties filing with the VON Coalition include computer and telecom heavyweights Sprint, Netscape Communications and Microsoft Corp. They also comprise a number of individuals and smaller vendors and organizations such as the Commercial Internet eXchange Assoc. (CIX); FreeTel Communications, Inc.; Third Planet Publishing, Inc.; Millin Publishing Group, Inc.; New Media Coalition for Marketplace Solutions; Quarterdeck Corp.; VocalTec Ltd.; and Software Publishers.
Defending the free use of the Internet, Jeff Pulver, chairman of the VON Coalition, said, "ACTA's demands are designed to protect the economic self-interest of a small group of companies at the cost of a variety of beneficial new services."
A full vote on the ACTA petition by all FCC commissioners is still pending. However, Blair Levin, FCC chief of staff, has hinted at the probable outcome of the vote. In a speech delivered recently at the INET '96 Conference in Montreal, he stated on behalf of Reed Hundt, FCC chairman, that "the right answer at this time is not to place restrictions on [Internet telephony] software providers."
Other recent filings in opposition of the ACTA proposal have made by more than 430 other individuals, corporations and educational organizations, as well as the National Telecommunications and Information Administration and the National Science Foundation.