OFCOM, the UK Communications Regulator, is a keen supporter of having an open and flexible regulatory environment and, as a result, they are keen to facilitate the development of new services such as VoIP.

Whilst much progress has been made in many areas, a key unresolved issue for users of VoIP, is the fact that you actually pay line-rental twice: once to BT, through whose cables you get broadband, and secondly for your VoIP service. This represents a dual and unnecessary cost if you have an entirely VoIP based phone system.

Ultimately, the solution would be for the incumbent operators, such as BT and NTL, to offer their lines without a phone service - so as a customer, you just purchase the Internet-connection component. This is currently not possible, though the Internet Telephony Service Providers Association (ITSPA) is lobbying BT Wholesale and OFCOM to demand that they make this service available for consumers.

A second regulatory issue is whether VoIP service providers should be subject to the same regulations as traditional telcos? For example, should all VoIP providers, even if through-PC-only services, offer compulsory 999 emergency call connections?

OFCOM's approach, supported by ITSPA, is for less regulation and more self-governance in the industry. So, whilst there are still a number of technology issues to resolve, the UK regulatory framework for VoIP is positive and the regulators are keen to see such services develop.

Click here to download ITSPA's response to Ofcom's consultation on the Regulation of VoIP published on May 10th 2006.