Voice over IP (VoIP) telephony will be subject to stricter regulations that any other communications technology, service providers have warned.
The Internet Telephony Service Providers' Association (Itspa) warned that the detail of new rules from regulator Ofcom could have "unfortunate implications for UK businesses."
Itspa is concerned at Ofcom's move from a "light-touch" regulatory approach to a more rigid regulatory framework. This would have a significant impact on the industry, it said.
The service providers' body said new Ofcom regulations on VoIP were "broadly acceptable”, but said extra regulatory costs would put the UK VoIP industry at a competitive disadvantage and could hinder the creative development of the industry.
The rules would be hard to enforce against overseas providers marketing their services in the UK, Itspa added.