PROTECTING CUSTOMERS – REGULATING VoIP
Voice over IP (VoIP) is having an increasing impact on the UK telecommunications sector and the past year has seen the launch of wide range of new services targeted at domestic customers. There may be as many as 3 million VoIP users in the UK by the end of this year. VoIP undoubtedly has the potential to bring new benefits to consumers, including more competition and choice, lower prices and new services. But consumers may not be fully aware of the limitations of many VoIP services and Ofcom has decided to introduce new regulation to protect their interests.
INTRODUCING THE CODE
From June 2007, VoIP service providers will have to comply with the provisions of the service providers’ Code of Practice on provision of consumer information to domestic and small business customers. VoIP service providers will have to provide accurate consumer information on issues where their services differ from traditional telephony including:
- Access to emergency services
- Dependence on power supply
- Number portability
- Customer services such as operator services and itemised billing
LOOKING AHEAD
It would seem likely that Ofcom plans to keep a close eye on VoIP services as an important element in the overall communications market. It will probably review and adapt regulation to ensure citizens and consumers continue to gain full benefit from VoIP developments. Ofcom’s next step will be to hold a consultation on how VoIP services should be required to offer emergency service access, scheduled for later this year. Ofcom is also considering its position on other IP-related issues such as ‘naked DSL’, ‘net neutrality’, ‘nomadic services’ and the implications of the European Framework Review.
READ BETWEEN THE LINES
VoIP providers are understandably wary about the introduction of new regulation, fearing that it could hinder or even stifle creative development in a rapidly evolving market. The BT Wholesale view is that that offering greater protection to consumers who are keen to know more about what VoIP can really offer, is more likely to drive their uptake of the new technologies - to the benefit of the communications industry as a whole.
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