ARTICLE
15 August 2011

Should Facebook Be Subject To Phone Company Regulation?

DM
Duane Morris LLP

Contributor

Duane Morris LLP, a law firm with more than 800 attorneys in offices across the United States and internationally, is asked by a broad array of clients to provide innovative solutions to today's legal and business challenges.
Not too long ago, Facebook didn't even exist, while phone companies had provided means of communications for many decades. Then Facebook was born as a social networking site for college kids.
United States Media, Telecoms, IT, Entertainment
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Originally published in Findlaw.com

Not too long ago, Facebook didn't even exist, while phone companies had provided means of communications for many decades. Then Facebook was born as a social networking site for college kids.

In just a handful of years, Facebook has exploded nationally and internally to the tune of 750 million current users. This, not surprisingly, has attracted the attention of the phone companies, who want equal regulatory treatment.

Indeed, a phone company trade group has stated its view that it is unfair for Facebook to provide Internet-based telephone services free from regulation, while telephone companies grapple with serious regulatory requirements.

This view is strong enough that Walter McCormick, U.S. Telecom's President, reportedly has asked Congress to revise telecommunications laws to reflect the new telephone world order that includes Facebook's Internet-based phone services. He has expressed the sentiment that with expanding competition and consumer choices, one segment of the communications industry should not be regulated disproportionately when compared to another.

Mr. McCormick reportedly has noted that Facebook's current tally of 750 million users is greater than the users of any particular phone company, and that Facebook now offers voice services by partnering with Skype.

While Facebook's network is built on software, and the phone companies' networks are based on wirelines, that is not a reason, in his reported opinion, for them to be treated so differently: "we need to have laws that don't advantage or disadvantage particular networks," he is quoted as saying.

Whether Congress takes notice and moves to level the argued uneven playing field remains to be seen.

This article is for general information and does not include full legal analysis of the matters presented. It should not be construed or relied upon as legal advice or legal opinion on any specific facts or circumstances. The description of the results of any specific case or transaction contained herein does not mean or suggest that similar results can or could be obtained in any other matter. Each legal matter should be considered to be unique and subject to varying results. The invitation to contact the authors or attorneys in our firm is not a solicitation to provide professional services and should not be construed as a statement as to any availability to perform legal services in any jurisdiction in which such attorney is not permitted to practice.

Duane Morris LLP, a full-service law firm with more than 700 attorneys in 24 offices in the United States and internationally, offers innovative solutions to the legal and business challenges presented by today's evolving global markets. Duane Morris LLP, a full-service law firm with more than 700 attorneys in 24 offices in the United States and internationally, offers innovative solutions to the legal and business challenges presented by today's evolving global markets. The Duane Morris Institute provides training workshops for HR professionals, in-house counsel, benefits administrators and senior managers.

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