International Law

In the past many other countries seemed to predicate their laws on VoIP on monopoly-based, government-owned means, so that any other use of the service was considered illegal. In 2005, VoIP was still deemed illegal in over 50 countries. Many countries, however, have since developed various means of regulation, a sample of which can be seen in the subsequent sections listed below.

Italy

In Italy, in 2005, the telecommunications regulator changed its guidelines for VoIP operators.  VoIP calls are considered the same as fixed landline calls, and therefore must adhere to the same rules as would landline phones, including: identification procedures, number portability, and ability to wiretap services for the purpose of law enforcement measures. 

Canada

In 2005, the Canadian Radio-Television and Telecommunications Commission determined that VoIP services would be regulated only if used as a local telephone service.   Non-incumbent competitors would remain unaffected, which would ultimately provide competition in Canada’s landline telephone market.  However, due to concerns about emergency situations, those who provide local VoIP services are required to alert all customers to the availability and limitations of 911 emergency calls and services. 

Australia

The Australian Department of Communication, Information Technology and the Arts (DCITA), released a report in 2005 regarding the regulatory needs of VoIP. The report concluded that no major changes were necessary, but, similar to other countries, it stressed the importance of finding a way to modify emergency services.

Japan

Asia has a vast array regulatory schemes in its various regions.  Japan, unlike other aforementioned countries, has extensive regulatory measures for the use of VoIP services such as: number blocking, quality of service minimum requirements, and, most importantly, the classification of VoIP as a telecommunications service.  Japan’s VoIP market is the most successful, having around 80% of the world’s VoIP users.

South Korea

In 2004, the South Korean Ministry of Information and Communication (MIC) established a decree that regulates VoIP as a telecommunications service.  However, they do not have the technology to access 911 emergency systems or the ability to obtain a warrant to allow for wiretapping on VoIP service users.

Hong Kong

Also in Asia, until 2004, Hong Kong had absolutely no regulations on VoIP use. Calls made through VoIP did not have to adhere to local access charges.  Although a suit was brought, the plaintiffs dropped their appeal, and in 2006, Hong Kong’s regulatory agency, OFTA, provided a new licensing and connection scheme for VoIP users, maintaining that “a cost-based interconnection fee could be levied against VoIP providers.”

China

The Ministry of Information Industry (MII) in China banned telephone and fax use over VoIP because of the threat that the less expensive cost would destabilize the telecommunications monopoly in China.  Nonetheless, individuals continued to use the service, and eventually a Chinese court determined that VoIP is a computer information service that is not prohibited under the monopoly business law.  However, the Chinese government is still apprehensive about the popularity of VoIP and the drop in long-distance revenue.  They have even gone so far as to propose making VoIP calls via personal computers illegal.

Other Countries

In some countries, the regulatory agency helps the incumbent by blocking the licensing of VoIP services.  In Mexico, the regulatory agency blocks the licensing of alternative VoIP providers.  In Ecuador and Egypt, VoIP providers must enter termination agreements with the incumbent service provider.  Although VoIP was illegal in India, in 2002, it was allowed for end-users and service providers; and in 2005, VoIP was permitted for ISP customers using personal computers to make calls within and outside of India.  PC to phone calls are still only allowed if the terminating phone is located outside India.  In South Africa, the regulatory agency legalized VoIP, but the incumbent seems to be affecting its growth.  Similarly, in Bangladesh, the government will only allow VoIP to a limited number of companies.

Sources and Further Readings

Canada: Regulatory Framework for Voice Communication Services Using Internet Protocol, available here

Australia: The Department of Communications, Information Technology and the Arts, Examination of Policy and Regulation Relating to Voice Over Internet Protocol (VOIP) Services (2005), available here

Japan: Kenji Erik Kushida, Japan’s Telecommunications Regime Shift: Understanding Japan’s Potential Resurgence, 13-19, available here

South Korea: The Telecom Web Report (Aug 2005), available here

China: China: VOIP Opportunities and Market Overview, available here

Mexico: Ben Chamy, Mexico Telephone Operator Under VoIP Fire, CNET NEWS.COM, April 25, 2005, available here