cr> Coalition Formed in Response to Phone Company Attempts


(Note from moderator: formed by Internet phone vendors, of

                    PHONE COMPANY ATTEMPTS

New York, NY, March 18/PRNewswire/ - The "Voice On the Net" (VON)
Coalition ( announces its formation in response to
recent phone company attempts to regulate Internet services.  The VON
Coalition is taking action to preserve the worldwide network as a place for
emerging technologies and business. Charter VON members include Internet
users, technology companies and others intent on keeping the Internet open
to all forms of electronic commerce, including voice transmission.

The issue of voice on the Internet has heated up in recent weeks.  New
technology advances have led to the availability of computer programs that
allow people to carry on real-time voice conversations over the Internet.
While Internet calls are not of the same high quality as those placed
through traditional long distance services, they offer some compelling
advantages.  For example, using this technology, school children in a rural
American community could easily and inexpensively communicate with a
scientist in London.  Their conversation could include video and drawings
along with interactive voice transmission.  A growing number of Internet
voice  products, including VocalTec Inc.'s (NASDAQ: VOCLF) Internet Phone and
Quarterdeck's (NASDAQ:QDEK) WebTalk, can be purchased today. Other
companies including Intel, Microsoft, and Netscape, have announced their
intent to produce similar products.

The Long Distance industry, however, is trying to stop this competition.
On March 4, ACTA, a trade association representing 130 of America's long
distance companies, filed a petition asking the FCC to block the sale and
use of such software products.  ACTA is further asking that the FCC step in
and begin regulating use of the Internet.

The VON Coalition, along with the majority of Internet users, vehemently
opposes such regulation. Public notice of the ACTA petition was issued on
March 8, 1996 by the FCC (Report No. 2124). Comments to the petition must
be submitted to the FCC by April 8, 1996. The VON Coalition will take a
lead role in opposing the ACTA filing.

"ACTA is, in effect, attempting to eliminate outside competition by banning
emerging technologies" says VON Coalition Chairman Jeff Pulver.  "The
immediate mission of the VON Coalition is to persuade the FCC to deny the
ACTA petition."

"The ACTA petition asks the FCC to 'define the type of permissible
communication which may be effected over the Internet'", says Elon Ganor,
Chairman & CEO of VocalTec, Inc. "This is the kind of regulation that the US
government and people have traditionaly criticized third world countries for."

"ACTA is asking that the FCC declare specific software companies as
'Telecom Carriers'", Ganor continues. "Microsoft and Netscape recently
announced audio and video strategies for the Internet. Does this mean they
are now telecom carriers? Where will we draw the line?"

Howard Gordon, President of Xing Technologies, makers of the Streamworks
audio and video streaming product, says his organization is strongly opposed
to any efforts which limit the ability of content providers to develop
distribution channels.

"While the ACTA filing directly targets 2-way communications, we expect it's
only a matter of time before similar efforts are directed against Internet
radio and television broadcasting", says Gordon.

According to VON Coalition member Takeshi Utsumi, Ph.D., Laureate of
the prestigious Lord Perry Award for Excellence in Distance Education, "The
U.S. data communication networks such as ARPANET, Telenet (now SprintNet),
and the Internet, have been unregulated since the early 1980s. The fact that
these networks were unregulated allowed the use of email to successfully
replace more expensive Telex communications."

Charter members of the VON Coalition include: VocalTec, Inc. (NASDAQ:
VOCLF), Voxware Inc. , VDONet Corproation, Jabra Corporation, FreeTel
Communications, Inc., The DSP Group (NASDAQ: DSPG), Insoft, White Pine
Software, Netspeak Corporation, Xing Technology Inc., IDT Corporation,
GLOSAS/USA and GU/USA, and Electric Magic Company.

Individuals and corporations interested joining the VON Coalition can visit
the VON  web site at Anyone interested in submitting
individual comments to the FCC may do so by writing to:

        Federal Communications Commission
        1919 M Street
        Washington, DC 20554

All responses to the FCC should include a reference to Rulemaking No. 8775.
The FCC's website is
                            -0-                              3/18/96
/CONTACT: Sandy Combs, Director, VON Coalition, 802-878-9884 or


Sender: •••@••.•••
Subject: Re: cr> Andreeson: Phone co. equipment "rapidly becoming useless?"

In a message dated 96-03-17 14:42:40 EST, you write:

>Does anyone know whether there is/would be a possibility
>of using Internet telephony without the ISP at this end finding out that
>this is what users are doing via their Internet connections?


The actual coding of the program is probably still in the development stage,
but it stands to reason, if the teleco/ISP cannot tell what you are doing
presently(all they can see is what sites you visit, then go there themselves)
then they will not be able to see in the few months it will take to finish
this software, IMHO. What remains to be seen is whether or not the ISP takes
an active interest in what it's users are doing.


"Dont hold it against me that my address is @AOL.COM

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