Today the FCC told state public utility commissions to back off – it announced its ruling (see press release as ruling text is not yet out) that marks the beginning of the process for telecommunications regulatory reform. A unanimous FCC ruled that VoIP is not subject to traditional state regulation.
There still remains much to do before we have coherent telecom law. What federal rules will apply to VoIP is still an open question. The FCC’s ongoing IP-Enabled Services Proceeding will determine whether VoIP services are an “information service” or a “telecommunications service” under current law.
At the very least, this ruling answers the question of “who decides.” Commissioner Copps, in his statement, downplays this ruling. But don’t believe him. This is a good start toward the recognition that a national industry deserves an institution accountable to national interests. This is a win for federalism, the principles of which recognize that federalism is not just “state rights” but is a consideration of what institutional arrangement will best serve the national interest over time. This is a win for consumers, although I envision that so-called consumer “watchdog” groups will gripe about this decision. These same groups bemoan the fact that the U.S. is slipping in the per capita penetration of broadband subscribers. But perhaps, just perhaps, one of the reasons (and there are many) for high penetration rates in Korea and Japan is that they don’t have 50 state PUCs trying to run the show!
Of course, states have other ways to insert their noses into VoIP under the guise of “consumer protection” and social services like 911.
The Technology Liberation Front is the tech policy blog dedicated to keeping politicians' hands off the 'net and everything else related to technology.
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