Nuvio

1
Nuvio

• Regulatory and Taxation Challenges

2
Products

• Private Label VoIP Solutions for Broadband
  Providers, Cable Operators, CLECs, and VARs
• NuvioVoice Consumer Product
• NuvioCentrex SMB Hosted IP Platform

3
Litmus Test

• Does the threat of regulation or non-regulation
  interfere and cause Nuvio to lose customers or
  sales that would otherwise be obtained?
• If so, what types of regulation are preferable
  and why?

4
Substantive Issues

• E-911
• Number Allocation
• Interconnection Agreements
• Jurisdictional/State Issues
• USF Funding
• Municipal Taxes
• Miscellaneous

5
E911

• Why is it important?
• How is it currently funded?
• Why does VoIP present so many problems for E911?
• Determination of location
• Jurisdictional taxation
• Is there a better way to fund it?
• Has it cost us business?

6
Number Allocation

• Dependence on CLECs
• Number shortage and/or unavailability
• Pending NANPA Petition for numbering access

7
Interconnection Agreements

• No legal right to them in most states
• Not a certificated CLEC
• Presents obstacles to termination and access
  charges
• Liable for access charge or reciprocal
  compensation charges
• Type of traffic, pure IP
• Level 3 forebearance
• No access to tandem switches or PSAPs

8
Jurisdictional Issues

• States do not read FCC orders
• Historical significance of state jurisdiction
• Reason for state actions and interest
• Impossibility of state jurisdiction
• Some various state initiatives
• California
• Kansas
• New York
• Minnesota
• Ramifications

9
USF Funding

• Significance of USF
• Who contributes and how
• Reason for action by States
• Role of VoIP in USF

10
Municipal Taxes

• Revenue shortfalls
• Attempt to levy easy tax
• Jurisdictional issues (same problems as state)
• Similar to wireless companies

11
Miscellaneous

• Excise taxes
• Cost of administration
• Non-discriminatory broadband access

12
Role of regulation

• National in scope
• Protect emerging technology
• Light touch
• Encourage adoption

13
Effect on Consumers

• Education
• Fluid pricing and requirements
• Could change features and use
• Generally does not prevent adoption

14
Discussion