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IPTV has become a global phenomenon that poses challenges to telecommunication regulators. This study investigates telecommunication regulation and what framework should be adopted for IPTV regulation. While IPTV providers in the U.S. must apply for a franchise when launching a service, IPTV in the U.K. is classified as a linear service, treated similarly as traditional broadcasting service. This study concludes that innovative features of IPTV will be better represented through a horizontal framework.