The European Union, has pronounced on the regulation of internet telephony, stating that it won’t make internet telephony service providers abide by current rules on phone services. Internet telephony gives lower quality service to the standard telephone network, for the price of a local call. But, when the EU comes to review its current policy some time before 1 Jan 2000, and if the quality improves, it may decide that internet telephony needs to be regulated like normal voice telephony, which would involve companies being forced to pay into the universal service funds, and apply for telecoms operating licenses. Both these measures will certainly force up the cost of internet telephone calls.
