VOIP, a tax cut for government


AT&T;'s John J. Langhauser
on VoIP savings for government

"In the IP environment, voice services can also be provided much more efficiently. IP technology allows for more efficient routing of calls than traditional circuit-switching. These efficiencies enable more innovative service packages. Current VoIP offerings allow customers that have a broadband connection to place unlimited calls anywhere in the country for a single, low monthly price. The Alexis de Tocqueville Institution concluded earlier this year that government at all levels could save $3–10 billion annually—up to 60% of their current phone bills—by replacing circuit-switched service with VoIP. You should not, however, think of VoIP as 'cheap phone service.' It promises to be lower-cost, yes, but with a host of new communications management features and options that go well beyond today's 'plain old telephone service.'

"Allowing VoIP to develop in the marketplace is a critical step to bringing this Nation into the digital age. AT&T; welcomes the fact that many Members of Congress support a hands-off approach to VoIP and have introduced legislation that would bring the benefits of competition and innovation to the telecommunications marketplace. Congressman Pickering, for example, has proposed a deregulatory approach to VoIP that acknowledges the need to reform the current subsidy system and allow this nascent service to flourish."

House Judiciary Committee
Subcommittee on Commercial and Administrative Law
July 23, 2004
Link to testimony

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