VoIP is basically the transport of telephone calls over an internet connection. For a company that already pays for a broadband connection, long distance calls can become free of charge, albeit that VoIP handsets tend to be much more expensive than standard handsets.
The technology has the added attraction of being tax free, given that internet access taxes are presently forbidden in the US. However, cash-strapped US states, concerned at losing revenue previously provided by highly taxed telephone calls, are calling for VoIP calls to be regulated and taxed.
In response, several companies have joined a lobbying group called the Voice on the Net Coalition.
Founded in 1996, the VON Coalition's mission is twofold: to actively advocate the viewpoint that the IP telephony industry should remain as free of governmental regulations as possible, and to educate its members on regulatory and policy issues of business importance.
"VoIP is not another flavour of telephone service," said Peter Pitsch, Communications Policy Director for Intel, one of the early members of the VON Coalition. "It's a new frontier in communications for individuals and businesses alike, and it requires forward-thinking regulatory approaches".
He explained in a statement yesterday:
"If we subject this new technology to legacy telecom regulation, consumers and business users will miss out on the new services, increased choices and better prices that VoIP can deliver.
"US policies have been an enormous success making the U.S. a leader in the development of VoIP and providing an influential policy model that has been emulated by many other countries. If we were to abandon this approach, we could jeopardize our leadership."
Membership of the VON Coalition has recently expanded and now includes Microsoft, Net2Phone, PointOne, MCI, AT&T and Texas Instruments.