1 Managing the Transition to IP-Based Public Phone Networks in the United States Joe Gillan CRNI November 22, 2013 Gillan Associates

2 Overview  Technology Transition  The Peculiar Structure of US Law  Consequences of Law and Political Dynamic

3 An Overview of the Transition Telephone Service Circuit- Switched Network Internet Service Open Best-Efforts Packet Network

4 An Overview of the Transition Telephone Service Circuit- Switched Network Next Generation Network (Packet Network with Managed Traffic Flows) Internet Service Open Best-Efforts Packet Network Note: At the physical layer, new facilities are being interwoven into the existing network.

5 An Overview of the Transition Telephone Service Circuit- Switched Network Tele- phony InternetVideoOther Next Generation Network (Packet Network with Managed Traffic Flows) Internet Service Open Best-Efforts Packet Network Note: At the physical layer, new facilities are being interwoven into the existing network.

6 Two Types of Services  TELECOMMUNICATIONS.--The term ''telecommunications'' means the transmission, between or among points specified by the user, of information of the user's choosing, without change in the form or content of the information as sent and received.  INFORMATION SERVICE.--The term ''information service'' means the offering of a capability for generating, acquiring, storing, transforming, processing, retrieving, utilizing, or making available information via telecommunications, and includes electronic publishing, but does not include any use of any such capability for the management, control, or operation of a telecommunications system or the management of a telecommunications service.

7 Distinction - Overview Telecommunications ServiceInformation Service State and Federal Regulators Regulate as Common Carriers Treated similarly to other consumer services. Unbundling of access links – but FCC only requires TDM/Copper No unbundling authority. Broad interconnection rights granted entrants to prevent discrimination. Traditional antitrust may apply, but not proscriptive rights. A range of specific obligations.

8 Information Service Telecom Service Free World Dial- UP (2004) IP in the Middle (2004) Become a member, download software, “talk” to other members on Internet Make a normal long distance call and somewhere in the middle, AT&T carries it on Internet

9 Information Service Subject to DebateTelecom Service Free World Dial- UP (2004) At least 90% of the VoIP subscriptions in the US. IP in the Middle (2004) Become a member, download software, “talk” to other members on Internet Make a normal long distance call and somewhere in the middle, AT&T carries it on Internet

10 Incremental Oversight  Routing calls to E911 with location information;  Payment of federal and state universal service obligations;  Support lawful wiretaps;  Protection of customer proprietary network information;  Restrictions on the discontinuance of service;  Disabilities access;  Telephone number porting;  Prohibitions on call blocking;  Payment of intercarrier compensation obligations; and  Reporting a variety of network performance statistics.

11 Critical Competitive Concerns  Interconnection/Traffic Exchange  Last Mile Access

12 Residential Share in US Wireless Only Source: USTELECOM, “Evidence of Voice Competition and ILEC Non-Dominance Mounts,” April 2, Cable Share Incumbent Share All Other

13 Business Share in US Source: USTELECOM, “Evidence of Voice Competition and ILEC Non-Dominance Mounts,” April 2, ILEC Share Traditional CLEC Share Cable Share

14 The Current Status …  AT&T has requested a trial to “turn off” its traditional network.  Competitors are litigating interconnection rights in the states.  The new FCC Chairman has announced he will adopt an Order:  Collect comment on (and begin) “experiments,”  Collect and analyzed data,  Initiate a process to address legal, policy and technical issues.