Voice over internet protocol (VoIP) development and public policy implications

Purpose – In the context of a current regulatory proceeding in the USA, the purpose of the paper is to argue for utilization of a new analytical framework to govern the regulation of the rapidly growing voice over internet protocol (VoIP) technology. Specifically, the paper recommends replacement of the Federal Communications Commission's (FCC) existing vertical regulatory structure with a new conceptual paradigm, a layered or horizontal model that more closely mirrors the structure of internet communications.Design/methodology/approach – The paper briefly traces the evolution of the FCC's current regulatory structure and its previous treatment of internet telephony. Current petitions by individual telecommunications companies before the FCC and the agency's notice of proposed rulemaking on VoIP are analyzed and business and economic implications of VoIP are discussed.Findings – The paper finds that utilization of a layered model enables policy makers to target regulation to specific sources of market pow...