May 3, 2006

U.S. Senate Needs to Hear About VoIP Concerns
Action Needed Immediately

ISSUE:

Currently burglar and fire alarm signals are transmitted from the home or business to a central monitoring station over telephone lines. In many cases Voice over Internet Protocol (VoIP) systems will become a substitute for the current landline systems. When a VoIP (broadband) phone system is improperly installed, by either a consumer or a VoIP provider, there is a significant risk that existing alarm panels will be bypassed and no longer be able to send a signal to the alarm monitoring station.

Unless the consumer is notified and the system is properly tested he/she will be unaware that they no longer have alarm monitoring services for the protection of life and property. While some alarm consumers may learn their system is no longer operable when an automatic test is run on their system, millions of Americans who have older systems which can not be automatically tested will only learn that they no longer have alarm services during an emergency. To make matters worse, seniors with health alert systems will not be aware that they have lost their health lifeline. This is a problem which can easily be remedied if the consumer is notified in advance of VoIP installation and his/her system is then tested.

BACKGROUND:

On Wednesday, April 26, the House Energy and Commerce Committee marked up final legislation that is the first step in the rewriting of the 1996 Telecommunications Act. The Committee adopted, by a unanimous voice vote, an amendment by Rep. Cliff Stearns (R-FL) requiring VoIP providers to notify consumers before installation of VoIP phone service and prior to number activation that if they have an alarm system they should:

1. Arrange with their emergency response provider to test their system;
2. Notify their emergency response provider after VoIP service is installed; &
3. Have a battery backup for the alarm system.

Committee Chairman Joe Barton (R-TX) indicated that he supported the amendment and that all the parties involved had worked out the language.

The NBFAA worked in coordination with the AICC (Alarm Industry Communication Committee) that includes the CSAA (Central Station Alarm Association) in leading the alarm industry's concerns on VoIP that were included in this Bill.

LEGISLATIVE UPDATE:

The next action in the House of Representatives will be a vote on the bill in the full House. This is expected to occur in the next few weeks.

ACTION NEEDED IMMEDIATELY

NBFAA is now asking you to turn your attention to the Senate where Commerce Committee Chairman Ted Stevens (R-AK) is putting together a Senate version of a telecommunications bill - which he hopes to introduce sometime in the next few weeks.

You are urged to directly contact your Senators, especially those who sit on the Senate Commerce Committee, and request that they include the alarm industry’s “Alarm VoIP Consumer Notification” in the Senate version of the telecommunications bill.

Materials Provided to Assist You In Contacting Your Senator

• We have created a sample letter to assist you when contacting your Senator. The letter addresses the issue of notification prior to installation and number activation and the need for notice to be included in the packaging of equipment sold directly to consumers.
• A list of the Senate Commerce, Science and Transportation Committee (below) as well as this link to the Senate Commerce Telecommunications Legislative Assistants and their e-mail and telephone numbers.

Additional Materials Which May be Helpful in Understanding the Issue

• A copy of the proposed language that the industry would like to see included in any telecommunications legislation
• VoIP Senate Amendment
• AICC letter sent endorsing the Stearns Amendment
• Copy of Rep. Stearns language in House discussions
• Copy of Stearns Amendment
• VoIP Industry Affairs Update (Members Only)

We urge you to start e-mailing and calling them as soon as possible.

PLEASE FAX A COPY OF ANY CORRESPONDENSE (LETTERS, FAXES OR E-MAILS) TO NBFAA GOVERNMENT RELATIONS DEPARTMENT: (703) 684-7594

If you have any questions please do not hesitate to contact our Director of Government Relations John Chwat at (703) 684-7703 or gov.info@alarm.org. Additional information on VoIP is available in the Government Relations section of the Information Center at www.alarm.org.