*Pages 1--2 from  Microsoft Word - 33875*
 NEWS  Federal  Communications  Commission  445  12  th  Street,  S.  W.  Washington,  D.  C.  20554  This  is  an  unofficial  announcement  of  Commission  action.  Release  of  the  full  text  of  a  Commission  order  constitutes  official  action.  See  MCI  v.  FCC.  515  F  2d  385  (D.  C.  Circ  1974).  News  Media  Information  202  /  418-  0500  Internet:  http://  www.  fcc.  gov  TTY:  1-  888-  835-  5322 
 Opening  Remarks  of  FCC  Chairman  Michael  K.  Powell 
 At  the  FCC  Forum  on  Voice  over  Internet  Protocol  (VoIP) 
 December  1,  2003  Washington  D.  C. 


 Let  me  begin  by  welcoming  our  panelists  to  today’s  public  forum.  On  behalf  of  my  colleagues,  I  want  to  extend  the  Commission’s  thanks  to  our  participants  for  traveling  to  Washington  and  participating  in  this  dialogue. 
 Today,  we  begin  an  important  process  which  should  have  as  its  goal  the  empowerment  of  consumers  and  entrepreneurs.  As  one  who  believes  unflinchingly  in  maintaining  an  Internet  free  from  government  regulation,  I 
 believe  that  IP-  based  services  such  as  VOIP  should  evolve  in  a  regulation-  free  zone. 
 No  regulator,  either  federal  or  state,  should  tread  into  this  area  without  an  absolutely  compelling  justification  for  doing  so.  Innovation  and  capital  investment  depend  on  this  premise.  The  entrepreneurs  seated 
 before  us  depend  upon  this  premise.  In  my  view,  we  should  come  to  this  forum  with  a  sense  of  regulatory  humility  -  mindful  that  it  is  entrepreneurs,  not  governments,  who  came  up  with  the  idea  of  making  high-  quality,  inexpensive 
 phone  calls  over  the  Internet. 
 Today,  we  will  hear  encouraging  examples  of  the  kind  of  real  change  that  is  sweeping  the  telecommunications  market.  Real  change  is  never  comfortable.  Change  produces  anxiety  for  incumbents,  for 
 regulators,  for  politicians  and  for  our  citizens,  who  are  confused  by  the  dizzying  array  of  new  digital  technologies  by  the  new  services.  We  must  resist  the  impulse  to  respond  to  this  change  by  exporting  old  regulatory  structures  into 
 the  new  IP-  space. 
 As  the  Internet  continues  to  command  a  central  position  in  communications  and  in  commerce,  the  lurching  assertions  of  different  regulatory  regimes  could  threaten  its  very  viability  and  could  severely,  if  inadvertently, 
 undermine  the  efficient  development  of  national  economic  opportunity.  The  time  has  come  to  confront  this  issue  more  directly,  rather  than  having  the  regulatory  framework  for  the  Internet  develop  in  a  piecemeal  fashion  or  by 
 dangerous  accident.  Thus,  it  is  imperative  that  we  establish  a  rational  policy  environment  for  IP-  based  services  to  continue  to  evolve. 


 In  my  view,  that  policy  environment  must  begin  with  the  recognition  that  the  Internet  is  inherently  a  global  network  that  does  not  acknowledge  narrow,  artificial  boundaries. 
 This  is  not  to  say  that  states  don’t  have  important  roles  in  the  areas  of  their  traditional  police  powers.  Indeed,  we  are  fortunate  to  hear  from  two  state  commissioners,  Carl  Wood  of  California  and  Chuck  Davidson  of 
 Florida  today.  We  have  also  heard  from  a  number  of  members  of  Congress,  including  Senators  McCain,  Wyden,  Allen  and  Sununu.  Each  has  urged  that  the  Commission  examine  carefully  the  role  of  state  regulation  of  VOIP  to 
 ensure  that  investment  and  innovation  are  undeterred.  I  appreciate  their  support. 
1
 To  be  sure,  health,  safety  and  welfare  concerns  may  give  rise  to  uniquely  state  interests  and  it  might  be  proper  for  them  to  play  a  role  in  these  areas.  Economic  regulation,  however,  is  entirely  another  matter  and  we 
 should  approach  that  area  of  regulation  with  significant  skepticism. 
 The  past  decade  has  seen  some  of  the  most  amazing  advances  in  technologies  that  offer  a  breathtaking  array  of  new  options  and  choices.  From  broadband  Internet  access,  WiFi,  Napster,  Kazaa  and  now  VOIP  and  Skype 
 –  each  are  a  testament  to  the  fact  that  we  have  turned  the  corner  on  the  Digital  Migration.  I  look  forward  to  hearing  from  our  panelists  today  and  learning  more  about  these  exciting  new  technologies. 


 Indeed,  because  there  is  so  much  innovation  happening  in  this  space  and  because  time  was  limited,  it  was  impossible  to  include  every  unique  VOIP  provider  in  today’s  forum.  I  encourage  any  entity  who  has  a  stake  in  the 
 outcome  of  this  inquiry  to  submit  presentations  to  the  Commission.  We  will  ensure  they  are  considered,  included  in  the  record  and  made  available  to  the  public  on  the  Commission’s  website. 


 The  dialogue  we  begin  to  day  is  far-  reaching.  The  record  upon  which  we  base  our  judgments  should  be  equally  comprehensive. 
 -  FCC  - 
2