FCC Says Pure Internet-Phone Service Not Subject to Telecom Regulations

The FCC on Thursday ruled a company routing free calls entirely over the Internet is not subject to traditional telephone regulations.

In a 3-2 decision, FCC commissioners voted that pulver.com’s Free World Dialup service is an information service, according to independent analyst Daniel Berninger, who attended the meeting.

The FCC also opened a broad proceeding to analyze how to regulate IP voice traffic. The regulator is tasked with upholding rules that apply to traditional phone companies while not stunting the growth of new technology. It is a difficult balancing act since calls routed over IP networks frequently touch the heavily regulated PSTN controlled by the regional Bells and other local phone companies.

Berninger says the FCC ruled regulating IP traffic is a federal matter and is not under the jurisdiction of states. But the analyst disagrees, saying the Internet is a global phenomenon.

“I didn’t see anybody recognizing the fact that the U.S. doesn’t own the Internet and will have a hard time regulating it,” he says.

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