Pulver.com FCC Petition

In February of 2003, the Pulver.com petition addressed Free World Dialup (FWD), which is a peer to peer voice network that allowed users to use voice connection by Internet to any other user using the same software at any location is the world.  They allowed computer to computer communication, but not computer to telephone communication.  FWD is an Internet application which has no connection to a specific physical transmission facility.   

Pulver.com filed a petition for a declaratory ruling in 2003 requesting the Commission to declare the service not to be a telecommunications service.  Adhering to the terms set out in the Communications Act of 1934, the Commission considered telecommunications as a transfer of information by users without change in the form of the information but with knowledge of the points of transfer by the user.  Telecommunications services are defined as making telecommunications services available to the public for a fee without deference to the means used.  Meanwhile, information services are defined as providing information through telecommunications and other electronic means, but its use does not provide for any control over the method in or operation allowed for in telecommunications, or telecommunications services.

In order to use FWD, users must already possess existing Internet service and purchase separate equipment or download software for the computer to function as a “soft phone.”  Pulver does allow users to connect for free through VoIP by obtaining an assigned number and granting the ability to communicate with other FWD members; however, Pulver does not need to be aware of the geographical locations where its members are located to communicate, nor can they locate that geographical location. 

Pulver promotes its service as a translation service, alerting its members when others are online and available to receive a call, but Pulver maintains that it is simply an Internet application providing its members with necessary information for the members to intercommunicate.  Therefore, they argue first that they are not a telecommunications because they give no transmission capabilities to it members and no fees are charged for its service.  Instead, Pulver considers itself an information service because it offers the transfer of information through telecommunications, and offers its members “computing capabilities.”

Although the service allows Internet users to communicate directly with each other over the Internet, the FCC found FWD was not a telecommunications service but rather an information service.  Therefore, users do not have to pay taxes or access charges, but they are subject to federal jurisdiction.

This last section of the decision indicates that federal authority is already prevalent in information services such as the Internet, which Congress has expressed in its opinion to leave it unregulated.  Even though the test for determining interstate versus intrastate jurisdiction does not apply in this case, if it did, there would be no basis to find intrastate jurisdiction.

Original Pulver.com Petition

FCC Memorandum Opinion and Order

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