Most national regulatory authorities in Europe started to pay close attention to VoIP services only once these services had achieved a modest level of popularity. In many cases, this was not until players of significant size had entered the market, and was several years after the launch of the first services, which took place around 2002. Initial regulatory responses to VoIP were fragmented and largely uncoordinated. The inadequacies of these initial responses became more apparent as VoIP services gained traction in the marketplace.
Retail VoIP services now account for a sizeable proportion of the fixed voice market. Mainstream players, including incumbents, are active in the VoIP market, particularly in countries in which there is a high level of infrastructure competition. VoIP services accounted for 38% and 35% of retail fixed voice connections in France and the Netherlands, respectively, at the end of the third quarter of 2009.
The migration from PSTN to VoIP is a major factor in operators’ investment plans as they begin to upgrade their networks to next-generation technology, and particularly to next-generation access. Large and small players in the voice market will expect a stable regulatory environment in order to be able to make major investment decisions. Regulators also need to ensure that consumers’ expectations of the quality levels of telephony services continue to be met.
Since the early days of VoIP regulation, a consensus has been reached about the treatment of VoIP and a fair amount of progress has been made towards establishing some basic common regulatory goals, spearheaded by action taken by the European Regulators Group. This short report offers a commentary on the progress of these harmonisation efforts.