| Wisconsin wants to regualte 8x8 Press Release Source: 8x8, Inc.
8x8 Announces Receipt of Notification From Public Service Commission Of Wisconsin Friday September 12, 5:32 pm ET
SANTA CLARA, Calif., Sept. 12 /PRNewswire-FirstCall/ -- 8x8, Inc. (Nasdaq: EGHT - News) today announced that on September 11, 2003, it received a letter from the Public Service Commission (the "Commission") of Wisconsin notifying the Company that the Commission believes that 8x8, via its Packet8 voice and video communications service, is offering intrastate telecommunications services in the state of Wisconsin without certification of the Commission. ADVERTISEMENT
According to the Commission's letter, it believes that 8x8 cannot legally provide Packet8-based resold intrastate services in Wisconsin without certification of the Commission. In addition, the Commission believes that Packet8 bills for intrastate services to Wisconsin customers are void and not collectible.
8x8 and its attorneys have contacted the Commission and are preparing a formal response.
About 8x8, Inc.
8x8, Inc. offers the Packet8 broadband telephone service (www.packet8.net), consumer videophones, hosted iPBX solutions (through its subsidiary Centile, Inc.), and voice and video semiconductors and related software (through its subsidiary Netergy Microelectronics, Inc.). For more information, visit 8x8's web site at www.8x8.com.
About Packet8
Launched in November 2002, Packet8 enables anyone with high-speed internet access to sign up for telephone service at »www.packet8.net. Customers can choose a direct-dial phone number from any of the rate centers offered by the service, and then use an 8x8-supplied terminal adapter to connect any telephone to a broadband internet connection and make or receive calls from a regular telephone number. All Packet8 telephone accounts come with voice mail, caller ID, call forwarding, web access to account controls, and real-time online billing. High speed, instant-on broadband videophone accounts, which use the 8x8 DV325 SIP videophone, are also available. The DV325 videophone functions as a Packet8 voice line when making or receiving voice telephone calls from regular telephone numbers.
NOTE: 8x8 and Packet8 are trademarks of 8x8, Inc. All other trademarks are the property of their respective owners. |
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| Re: Wisconsin isn't only after Packet8 Chances are that there are other voice over broadband service providers who also recently received a similar receipt of notification from the PSC of Wisconsin.
Wisconsin is of the opinion that they already have jurisdiction over VoIP without making a finding - their statute is very broad. Wisconsin has not opened any new dockets or investigations and are acting based on jurisdiction they feel they already have.
For more info about the state of VoIP regulation across the US, please visit:
»pulver.com/reports/statesfightvoip.html |
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| I am sure others got notices too. For 8x8 being publicly traded, to not mention potentially material information can get them in trouble. In this case I think they see that and the potential for free advertising. (thus the very quick press announcement).
As to whether I think these states have a case, I feel that Packet8 should be in the clear. 1) They never mention they are a phone company or a replacement of such 2) They do not offer 911 service (or equivalent) thus they do not load the local infrastructure.
I believe the packets that I generate and receive in my own home are my business, if I choose to encode my voice and send it anywhere over bandwidth I have paid for then I should be able to do so, similarly if some chooses to encode their voice and have me decode it again perfectly within my rights to do so.
Internet radio ran afoul since the relationship of encoder and decoder did not compensate those who encoded the original material sufficiently. In the case of voip, this is not a one->many relationship. If my relatives choose to have a point-to-point network connection with me, then we should be able to do so regardless and it really is none of the states business.
If a relative makes an in state call to me POTS->gateway then they have paid local fees on the POTS connection. |
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| The states can careless if 1 VoIP company or a million operate in their state. They just want a piece of the money, that is the main reason here. |
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| I think that is a big part of this, especially for the States that are in some of the worst budget crunches in years.
Let me ask this, if Packet 8 were to file and obtain the license- what changes?
I mean is the license just a license, or are we talking about rules that bind the licencee to interconnection, inter-exchange traffic, UNE, E-911, ect.
If all this is a true license, like a common carrier, go get it and continue selling numbers. |
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| True unlike the Feds the states all have to have balanced budgets, they don't have the luxury of cutting taxation and increasing spending. They are all searching for new avenues to get revenue. I don't think the time is right for them to get significant funds from VoIP even if they are found to have a case here given the nascent VoIP market.
I think that if the states were to prevail, they could require VoIP providers to work with existing 911 service which would cost VoIP firms a lot of extra money and potentially some show stopper problems (address of 911 callers)
"...You should let me wet my beak a little." Fanucci to Vito in Italian (The Godfather). |
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| 911 will get solved, Cisco and others have an interest in that. Now weather it is 99.9999, well maybe not, but neither is cellular, and they aren't as vocal about 911 not being the same as 911 we all know.
If you took a poll most people would have no idea that a cell phone may not properly route a 911 call.
Another question is how much money would Packet 8 really loose by leaving WI? It may have no effect on them whatsoever to just leave that area alone. |
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| It probably means that they can't offer local rate center without paying a fee. If I understood it correctly.
What's to prevent people from getting a none Wisconsin area code?
I think they are also one of the first to tax satellite service.
They are in a big budget problem. They keep their word on not increasing property tax. Guest why? They just reassessed your property and it worth a lot more. |
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