VON Coalition 2002

1. VON Coalition 2002 Advocate and Educate Michael S. Jablon Director, Membership Developmentwww.von.org mjablon@hotmail.com 203-322-0485

2. Representing Industry Concerns Government regulation and public policy will have detrimental impact on our industry unless we can influence direction. Unfortunately, most VON companies don’t have the resources or know-how to influence elected representatives and government agencies. Since founded in 1996 by Jeff Pulver, the VON Coalition has established an influential position with policymakers positively impacting regulatory direction and educating members on strategic business issues. www.von.org

3. Activities and Results (1 of 3) • Helped deter FCC efforts to characterize VoIP as basic telecommunication service. Analyzed FCC Universal Service Fund program modifications and advised members on potential business impact. • Helped defeat legislation (HR1291) that would have regulated and imposed access charges on VoIP providers. www.von.org

4. Activities and Results (2 of 3) • Helped deter ITU efforts to 1) identify and measure VoIP traffic and 2) subject VoIP traffic to international accounting rates. • Provided input to FCC as it prepared to advise Congress on universal service issues, that regulation of VoIP services is problematic and unnecessary. • Persuaded FCC to reject ACTA Petition (1996) seeking to regulate software providers as carriers. www.von.org

5. Activities and Results (3 of 3) • Averted federal disability regulation on VoIP providers by educating FCC and advocacy groups about voluntary industry efforts to ensure access. • Prevailed in Colorado and Nebraska PUC cases in which USWest sought to impose per-minute access charges on VoIP services. • Successfully rebutted BellSouth’s characterization of VoIP as a “telecommunications” service subject to access charges in South Carolina. www.von.org

6. Current Issues, threats and Plans (1 of 3) • Universal Service: FCC proposing to change the mechanism by which carriers make contributions to the federal Universal Service Fund; changing from revenue-based to connection-based contribution system; ILECs and wireless carriers rather than IXCs will pay • Issue: Telecommunications classification triggers carrier regulation and assessments, including universal service payments. Current proposal does not change classification. • GSA Report; state PUC USF proceedings • Plan: Consider support of FCC proposed change www.von.org

7. Current Issues, threats and Plans (2 of 3) • ITU/European Commission: Development of a “new” regulatory framework • Threat: New framework subjects VoIP providers to regulatory burdens, including payment of international accounting rates • Plans: Continued participation in both informal and formal venues to foreclose or minimize regulation • ITU-D considering questions concerning Internet telephony and transition to packet networks • Looking for US input and leadership • Refocus debate from potential harm to benefits www.von.org

8. Current Issues, threats and Plans (3 of 3) • CALEA: Expansion of wiretap authority to digital networks - Communications Assistance Law Enforcement Act • Threat: FCC implementation imposes regulatory requirements, and significant costs, on VoIP providers • FCC has expressed concern about the ability of soft switches to comply with standards for packet networks • Plan: Monitor and participate in efforts to develop industry standards applicable to packet data transmissions www.von.org

9. h Current Members: • Sponsoring Members: • Intel Corporation • Pulver.Com • Participating Members • iBasis • Level(3) • Polycom • ITXC • Microsoft Corporation • Net2Phone • Sonus Networks, Inc. • Sylantro Systems www.von.org

10. Membership Benefits: • Continued advocacy in the regulatory and policy environments assuring an effective industry voice. • Critical regulatory and policy information that may impact business performance and investor confidence. • Industry recognition. Note: VON Coalition is a member led organization. Your membership helps ensure a prosperous future for our industry. www.von.org

11. Membership Obligations: • Agreement to have company identified as a member. • Availability to support industry positions with email and letter writing campaigns and participating in organized events. • Recruit new members. • All members are welcome to participate in leadership activities, member meetings and conference calls. www.von.org

12. h Membership Levels: • Sponsorship • $20,000 annually • Participant • $6,000 annually • Revenue $10m or greater or 100 or more employees • $2,000 annually • Revenue Less than $10m or less than 100 employees www.von.org

13. Membership Program: • Sponsoring Members: • Prominent listing on von.org and other VON Coalition communications(events, mailings, press releases, etc). • Right to use VON Coalition Sponsor logo on website and other marketing programs. • Participating Members • Listing on von.org and other VON Coalition communications(events, mailings, press releases, etc). • Right to use VON Coalition Participant logo on website and other marketing programs. • All Members • Monthly conference calls. • One vote for each member organization. • email correspondences and member meetings. www.von.org

14. VON Coalition • Representing and protecting the VON Industry in regulatory and policy maker debates. VON.ORG For more information, please check www.von.org www.von.org