Calling the Israeli Government - Is Anybody Home?

In an article titled "Ministry to Crack Down on Illegal VOIP Usage," Sharon Wrobel of the Jerusalem Post (not in the online edition) reports that the Israeli Ministry of Communications launched an investigation into Israel's 56 ISPs "regarding the illegal usage of international calls via voice over internet technology..." Sounds Salacious!

Click Here for Globes article.

The article continues " 'We are calling internet companies to adhere to the terms of their licenses and make sure their systems are not being abused by non licensed parties for the usage of VOIP. This is not directed against Skype and other VOIP companies but to clamp down on private individuals and private communications businesses who illegally use VOIP technology for selling international phone cards' said the spokesman for the Ministry [of Communications]"

The article continues to tell us the Director General of the Ministry says that this illegal activity seriously harms the licensed international carriers by "taking away revenue and pushing down prices." Heaven forbid! Pushing down prices - not that!

It is bad enough that broadband internet access in Israel is slow as a turtle (which impacts the quality of VOIP) but now the government wants to use protectionism to protect incumbent carriers and keep consumer prices artificially high. I contrast this to US FCC Chairman Powell's remarks in May 2004 to the RBOCs "You ought to be terrified because we are lowering the barriers to offering a service to which you have a dedicated massive infrastructure."

Here is a news bulletin for the Israeli Government and Bureaucrats: You cannot stop the proliferation of technology in our global, connected world. Not VOIP and not others. The cost of communication services is dropping worldwide, the RBOCs in the US are in trouble. If the Government of Israel wants to be anti-consumer, be prepared for some of the consequences of stunted growth(more on this in an upcoming post). However, if you want technology and communications to flourish in our little oasis in the desert then get with the program and get on the side of the consumer.