Ofcom report casts doubt on the future of UK VoIP

Ofcom have released their new regulations for VoIP in the UK. Ofcom is the independent regulator and competition authority for the UK communications industries.

You can read their report here: Ofcom Report (132 Pages)

The Internet Telephony Services Providers’ Association (ITSPA) who represent network operators, service providers and other businesses involved with the supply of VoIP services to business and residential customers within the United Kingdom, responded with a press release.

ITSPA Press Release

The UK telecoms super-regulator Ofcom has today released its long-awaited statement on the regulation of VoIP (Voice over Internet Protocol). As the most significant regulatory developmentin the Internet telephony market for over two years, this statement is destined to have a major impact on the future of online communication. ITSPA (the Internet Telephony Service Providers’
Association) has been in discussion with Ofcom throughout the consultation process.

Although they are broadly acceptable, ITSPA is wary that the detail of the new rules may have unfortunate implications for UK businesses and consumers. Whilst ITSPA will work closely with Ofcom to ensure that the regulatory environment continues to run as smoothly as it does now, members have expressed a number of fundamental concerns with the statement.

• That Voice over IP will be subject to a stricter regulatory framework than any other technology within the UK telecommunications industry.
• These new regulations will be particularly hard to enforce against providers who are based overseas, but market their services within the UK. This will be a significant threat to theUK consumer, who may not be aware of the disparity.
• The extra regulatory costs that Ofcom’s rules impose put the UK VoIP industry at a competitive disadvantage against international competitors, and risk hindering the creative development of the industry at an early stage.

ITSPA has highlighted these important issues to Ofcom on a number of occasions. The move from a ‘light-touch’ approach towards a more rigid regulatory framework will have a significant impact on the industry, which ITSPA will monitor closely as it develops.

So what does this mean for the future of UK VoIP providers?

Will these excessive regulations from Ofcom allow more international competitors to gain a larger portion of the UK market?

The strict regulations on UK providers to be able to provide emergency calls will mean the vast majority will still not be able to provide this feature. You cannot expect end users to take VoIP as seriously without such essential features. With so many hoops for providers to jump through it’s going to be an uphill struggle to compete with other players in the telecoms industry.