I 
108TH CONGRESS 
2D SESSION 
H. R. 4129 
To provide a clear and unambiguous structure for the jurisdictional and 
regulatory treatment for the offering or provision of voice-over-Internet- 
protocol applications, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 2, 2004 
Mr. PICKERING introduced the following bill; which was referred to the Com-
mittee on Energy and Commerce, and in addition to the Committee on 
the Judiciary, for a period to be subsequently determined by the Speaker, 
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned 
A BILL 
To provide a clear and unambiguous structure for the juris-
dictional and regulatory treatment for the offering or 
provision of voice-over-Internet-protocol applications, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; PURPOSE. 
(a) SHORT TITLE.—This Act may be referred to as 
the ‘‘VoIP Regulatory Freedom Act of 2004’’. 
(b) PURPOSE.—The purpose of this Act is to prevent 
the imposition of harmful obligations or a patchwork of
multiple and discriminatory regulations on the providers 
of applications that utilize the Internet protocol or any 
successor protocol to offer 2-way or multidirectional voice 
communications. 
SEC. 2. ASSERTION OF FEDERAL JURISDICTION. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, responsibility and authority to regulate the 
offering or provision of a voice-over-Internet-protocol ap-
plication is reserved solely to the Federal Government. 
(b) PROHIBITION
OF
STATE
REGULATION.—No 
State or political subdivision thereof may enact or enforce 
any law, rule, regulation, standard, or other provision hav-
ing the force or effect of law that regulates, or has the 
effect of regulating, the offering or provision of a VoIP 
application. 
(c) PROHIBITION OF DELEGATION TO STATES.—Any 
responsibility or authority to regulate the offering or pro-
vision of a VoIP application that, pursuant to subsection 
(a), is reserved by the Federal Government may not be 
delegated, by any Federal agency or officer, to any State 
or political subdivision thereof. 
SEC. 3. PREEMPTION OF BROAD FCC AUTHORITY. 
Except as specifically provided in this Act and not-
withstanding any other provision of law, the Commission
shall not impose any rule or regulation on, or otherwise 
regulate, the offering or provision of a VoIP application. 
SEC. 4. FCC AUTHORITY REGARDING CONNECTED VOIP AP-
PLICATIONS. 
(a) INTERPROVIDER COMPENSATION.— 
(1) RULEMAKING.—Within 180 days after the 
date of the enactment of this Act, the Commission 
shall complete a proceeding to establish a set of 
rules and standards to provide for appropriate ar-
rangements to compensate providers of facilities and 
equipment used to transmit communications employ-
ing a connected VoIP application. 
(2) FACTORS.—In the proceeding the Commis-
sion shall— 
(A) provide for an appropriate transition 
period to allow providers of such facilities and 
equipment and providers of connected VoIP ap-
plications to comply with any rules and stand-
ards established; and 
(B) consider the unique nature and cir-
cumstances relating to the use of such facilities 
and equipment in varying geographic markets 
and rural areas. 
(b) UNIVERSAL SERVICE.—Within 180 days after the 
date of the enactment of this Act, the Commission shall
complete a proceeding to provide a contribution mecha-
nism applicable to connected VoIP applications, which 
may include a collection methodology based on the assign-
ment of telephone numbers to end users, other methodolo-
gies, or any combination thereof. In the proceeding, the 
Commission shall seek to ensure the preservation, en-
hancement, and long-term sustainability of universal serv-
ice by maximizing participation in the support of universal 
service among the greatest number of providers of con-
nected VoIP applications. 
(c) LAW ENFORCEMENT ACCESS.— 
(1) REQUIREMENTS
REGARDING
ASSISTANCE 
CAPABILITIES.—Effective as provided in paragraph 
(3)(D), each provider of a connected VoIP applica-
tion shall ensure that its equipment, facilities, or 
services are capable of— 
(A) enabling the government to intercept 
communications transmitted using such applica-
tion and to access call-identifying information 
regarding communications so transmitted, and 
(B) delivering such intercepted commu-
nications and call-identifying information to the 
government, 
for the same purposes, to a similar extent, and sub-
ject to similar limitations and protections (including
protections regarding privacy and security and pro-
tections ensuring access only pursuant to lawful au-
thorization) that, under sections 103 and 105 of the 
Communications Assistance for Law Enforcement 
Act, are required of the capabilities of the equip-
ment, facilities, or services of a telecommunications 
carrier. 
(2) 
DETERMINATION
REGARDING
FEASI-
BILITY.—Not later than 180 days after the date of 
the enactment of this Act, and not later than every 
180 days thereafter, the Commission shall conduct a 
proceeding to determine whether it is technologically 
feasible and reasonable to commence applicability of 
the assistance capability requirements established 
under paragraph (1). 
(3) EFFECT OF DETERMINATION.—If the Com-
mission, pursuant to a proceeding under paragraph 
(2), determines that it is technologically feasible and 
reasonable to commence applicability of the assist-
ance capability requirements established under para-
graph (1)— 
(A) the requirement under paragraph (2) 
to conduct further semi-annual proceedings 
shall not apply after such determination;
(B) not later than 180 days after such de-
termination, the Commission shall establish 
rules, technical requirements, and standards 
that— 
(i) implement the requirements under 
paragraph (1); 
(ii) protect the privacy and security of 
communications not authorized to be inter-
cepted; 
(iii) minimize the cost of such compli-
ance on customers or subscribers; 
(iv) serve the policy of the United 
States to encourage the provision of new 
technologies and services to the public; and 
(v) provide a reasonable time and con-
ditions for compliance with and the transi-
tion to any new standard; 
(C) in establishing such rules, technical re-
quirement, and standards, the Commission con-
sult with providers of connected VoIP applica-
tions, manufacturers of equipment used by such 
applications, other appropriate parties providing 
services used in such applications, the Attorney 
General of the United States, and State and 
local law enforcement agencies; and
(D) the requirement under paragraph (1) 
shall take effect upon the expiration of the 180- 
day period beginning upon such determination. 
SEC. 5. VOLUNTARY INDUSTRY CONSENSUS PROCESS RE-
GARDING OTHER CONNECTED VOIP OBLIGA-
TIONS. 
(a) VOLUNTARY PROCESS.—The Commission shall 
appoint an appropriate representative industry organiza-
tion or organizations which shall, within 180 days after 
the date of the enactment of this Act, develop, as applica-
ble, consensus guidelines, protocols, or performance re-
quirements pertaining to the offering or provision of con-
nected VoIP applications for— 
(1) providing comparable capabilities to 911 
and enhanced 911 services; 
(2) improving use by the disabled community; 
(3) improving reliability of voice over Internet 
protocol applications; and 
(4) ensuring appropriate security for the appli-
cation and voice communications. 
(b) INFORMATION TO CUSTOMERS.—A provider of a 
connected VoIP application that does not provide for its 
customers services that are comparable to 911 service and 
enhanced 911 service shall provide a clear and conspicuous 
notice of the failure to provide such services to each cus-
tomer prior to the offering of the application to that cus-
tomer. 
(c) TECHNICAL SUPPORT.—The Commission shall 
provide technical support, as appropriate, to the organiza-
tion selected pursuant to subsection (a). 
SEC. 6. COMMISSION REVIEW. 
Beginning in 2005, the Commission shall provide a 
report to the Congress not less than biennially indicating 
any regulatory obligations that it recommends be enacted 
on the offering or provision of a VoIP application, includ-
ing nondiscriminatory treatment for processing or treat-
ment of digital packets. 
SEC. 7. NO STATE OR LOCAL TAXATION OF VOIP APPLICA-
TIONS. 
(a) IN GENERAL.—No State or political subdivision 
shall impose any tax, fee, surcharge, or other charge for 
the purpose of generating revenues for governmental pur-
poses on the offering or provision of a VoIP application. 
(b) EXEMPTION.—Subsection (a) shall not apply to 
a fee imposed for a specific privilege, service, or benefit 
conferred. 
SEC. 8. NO IMPACT ON TRANSMISSION FACILITIES. 
Nothing in this Act shall affect the authority of the 
Commission or any State commission to regulate the 
transmission facilities used to transmit a voice commu-
nication of a VoIP application. This section may not be 
construed to authorize the Commission or any State to 
regulate the offering or provision of a VoIP application 
by regulating such transmission facilities. 
SEC. 9. FTC AUTHORITY. 
(a) IN GENERAL.—Except as provided in subsection 
(b), nothing in this Act shall be constructed to affect the 
authority of the Federal Trade Commission to prevent un-
fair or deceptive acts or practices. 
(b) REGULATIONS EXCLUDED.—Subsection (a) does 
not authorize the Federal Trade Commission to issue any 
regulations to implement this Act. 
SEC. 10. DEFINITIONS. 
(a) IN GENERAL.—For purposes of this Act: 
(1) COMMISSION.—The term ‘‘Commission’’ 
means the Federal Communications Commission. 
(2) CONNECTED VOIP APPLICATION.—The term 
‘‘connected VoIP application’’ means a VoIP appli-
cation that is capable of receiving voice communica-
tions from or sending voice communications to the 
public switched telephone network, or both. 
(3) CUSTOMER.—The term ‘‘customer’’ includes 
a consumer of goods or services whether for a fee, 
in exchange for an explicit benefit, or provided for 
free.
(4) REGULATE.—The term ‘‘regulate’’ includes 
taking any governmental action that restricts, pro-
hibits, limits, or burdens, or imposes any obstacle, 
obligation, or duty, or interferes with, an applica-
tion. 
(5) UNIVERSAL SERVICE.—The term ‘‘universal 
service’’ has the meaning given such term by section 
254(c) of such Act (47 U.S.C. 254(c)). 
(6) VOICE-OVER-INTERNET-PROTOCOL APPLICA-
TION; VOIP APPLICATION.— 
(A) IN GENERAL.—The terms ‘‘Voice-over- 
Internet-protocol application’’ and ‘‘VoIP appli-
cation’’ mean the use of software, hardware, or 
network equipment for real-time 2-way or 
multidirectional voice communications over the 
public Internet or a private network utilizing 
Internet protocol, or any successor protocol, in 
whole or part, to connect users notwith-
standing— 
(i) the underlying transmission tech-
nology used to transmit the communica-
tions; 
(ii) whether the packetizing and 
depacketizing of the communications oc-
curs at the customer premise or network 
level; or 
(iii) the software, hardware, or net-
work equipment used to connect users. 
(B) EXCLUSION.—The term does not in-
clude an application that is used for voice com-
munications that both originate and terminate 
on the public switched telephone network. 
(b) COMMON TERMINOLOGY.—Except as otherwise 
provided in subsection (a), terms used in this Act shall 
have the meaning provided under section 3 of the Commu-
nications Act of 1934. 
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