Don't strangle VoIP in red tape

It's been a busy week for telecoms watchdog Oftel. Not only has it had to grudgingly admit that the BT Openworld broadband price reductions were a good thing for the UK technology sector, but it has also had to address some of its members' questions.

To deal with an "increasing number" of enquiries from service providers about internet-based voice services, Oftel has published new guidance on licensing, interconnection and other regulatory issues.

"Services based on internet technology are growing in popularity as they allow cheaper calls and innovative features such as video-conferencing," said Oftel boss David Edmonds. "For example, it is possible to make international calls for the price of a local phone call over the internet using personal computers."

Much of the guidance is about licensing issues. Will internet telephony require such licences, or can any old service provider set up a service, and effectively pull the rug from under the feet of the incumbents?

If it is seen as a substitute to the PSTN, then, yes. If it "appears to the customer" to be a substitute, or provides them with their sole means of access to the PSTN, then, yes again.

But, if it is "clearly" being offered as an adjunct to the PSTN, then, no, licences are not required. Quite how Oftel will determine when this particular loophole applies is open to discussion.

For a technology with the potential to offer new services and drastically cut costs for large enterprises, it is mystifying that VoIP is not more widely deployed. Sure, the likes of Cisco will cite a few case study customers as proof that this is not true, but in real terms much needs to be done.

It is good to see Oftel taking the situation seriously, but it is also disturbing to see another glut of red tape that could again hold up the deployment of a much needed technology.

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