To Whom it may concern:
(PR NEWSWIRE) DJ: Internet Telephony Pioneers Request Vice-President Gore'
DJ: Internet Telephony Pioneers Request Vice-President Gore's Support For
Presidential Commission
Letter Emphasizes the Need to Address the Conflict Between Historical
Telecommunications Policies and the Progress of Technology.
MELVILLE, N.Y., April 8 /PRNewswire/ -- Jeff Pulver, president of
pulver.com, Inc., a leading Internet based consulting, publishing and trade
show firm, today announced an effort to get executive branch attention for
the risks associated with proposed regulatory restrictions on emerging
telephony applications of the Internet.
The pioneers of IP Telephony applications, including IDT Corp. (Nasdaq:
IDTC), VocalTec Communications (Nasdaq: VOCLF), and ITXC joined Jeff in
seeking Vice-President Gore's help in creating a Presidential Commission to
investigate and recommend appropriate regulatory treatment of IP Telephony.
OPEN LETTER TO VICE-PRESIDENT GORE
The Honorable Albert Gore, Jr.
The Vice-President of the United States
Office of the Vice-President of the United States
Old Executive Office Building
Washington, D.C. 20501
Dear Vice-President Gore:
We write to request your assistance in, and support for, the formation of a
commission whose purpose would be to recommend strategies for closing divide
between historical telecommunications policies and the progress of
technology.
Technology has expanded the reach of the Internet and data networking into
areas historically regulated as "natural monopolies" (e.g. voice service).
This event has generated calls to place these emerging services into a
traditional regulatory framework, however, such an action threatens to
extinguish the private investment that makes these services possible.
We collectively believe Internet Telephony is a necessary and inevitable
consequence of an innovative Internet industry and a boon for end users
where voice represents only the first application arising from the
integration of telephones and the Internet. We strongly support the goals
of universal service, but the idea these emerging services should subsidize
universal service via existing mechanisms amounts to suggesting the emerging
personal computer industry should have helped make computing more affordable
by subsidizing the distribution of mainframes.
You have already provided global leadership in advocating universal access
to the Internet. We need to consider the issues carefully as we risk the
great irony of using the policy designed to make communications more
affordable and ubiquitous as the reason for discouraging the first Internet
application for people who don't own computers.
We have common ground in the recent trend toward deregulation of
telecommunications designed to leverage market forces as a means to improve
the telecommunications value delivered to end users, but now we observe a
contradictory reflex to introduce new regulation where it did not already
exist. It appears no interest group favors heavy regulation, but the
incumbent players offer the threat to universal service in an attempt to
make sure everyone gets similarly handicapped. The hypothesized threat to
universal service claims a risk to end users, but it seems reasonable to
check the validity of this notion. It should not suffice to note effects on
the traditional funding mechanisms as the emerging services will provide
cost performance improvements far beyond those possible by shifting dollars
from one group to another.
We seek your assistance to help focus the debate on finding an approach that
serves the best interest of end users rather than the best interest of an
anachronistic funding mechanism.
Regulation of Internet Telephony will hurt end users by discouraging private
investment. No company operating without regulations will expand into
regulated areas given the perceived risk that regulations will find their
way into core businesses. The absence of investment will cost end users:
1. lower prices and new services.
2. infrastructure investments.
3. jobs and prosperity.
The telecommunications and computer industries have grown ten fold for each
unit of cost performance improvement. Success in the computer industry
depends on constant innovation resulting in a thousand fold cost performance
increase over the last twenty years and sustained 30% growth rates. Success
in the telecommunications industry depends more on the action of lawyers
than innovation. We observe only modest cost performance improvements and
seven percent annual growth rates. There exists no technical obstacles to
computer like cost performance improvements in telecommunications and
computer like growth of the telecommunications industry. The difference
between 30% and 7% growth amounts to more than $2,000,000,000,000 worth of
jobs, tax receipts, and wealth creation over five years.
Progress calls for new strategies:
* as the existing policy of regulating certain services runs counter to
the underlying innovation of the Internet in decoupling physical, data
networking, transport, and application layers.
* as the policy of long distance subsidizing local service creates an
artificial distinction where end users need both kinds of service.
* as the expense of telecommunications leaves many communications needs
unfulfilled.
* as without adjustment current policies will cost the United States
global leadership in telecommunications.
* as policies defining communication as voice only will postpone the
unifying power of other diverse communications mechanisms.
The commission can provide global leadership for:
* the creation of quantitative measures and benchmarks for policy goals
like universal service.
* accelerating the deregulation of telecommunications.
* creating a environment that fosters innovation in telecommunications as
a national imperative analogous to a "race to the moon."
* development of programs encouraging private investment in the National
Information Infrastructure.
We look forward to your response on this critical matter, and we offer any
assistance you may need in further developing a strong and committed
response to this national problem.
Signed:
Jeff Pulver, President, pulver.com, Inc
Tom Evslin, CEO, ITXC, Inc
Elon Ganor, CEO, VocalTec Communications, Inc
Jim Courter, President, IDT Corp.
About pulver.com: Founded in 1994, pulver.com, Inc. ( pulver.com
) is an Internet based consulting firm. Pulver.com publishes Internet
technology related research such as The Pulver Report. The Company also
produces trades shows and conferences including Voice on the Net (VON).
Pulver.com also provides consulting services to the telecommunications,
financial services and Radio/TV industry. Pulver.com is based in Melville,
NY USA. For more information, e-mail jeff@pulver.com, telephone
516-753-2640 or fax 516-293-3996.
/CONTACT: Jeff Pulver of pulver.com, 516-753-2640, or jeff@pulver.com/
*** end of story *** |
