October 17, 2006
Should Cable VoIP Be Regulated By State?
That's what utility regulators in the US state of Missouri believe, prompting the PSC (Public Service Commission) to ask Comcast for their application for a certificate of service authority. Comcast, who are leading the race for most cable VoIP subscribers in the US, in turn filed a federal lawsuit in Missouri district court against the state's Public Utilities Commission.
It appears that the PSC disagrees with the FCC's decision that VoIP should not be regulated by the states, especially for local cable providers. Cable companies and pure play companies such as Vonage and SunRocket were designated as being exempt from state regulation on VoIP providers. Says Van Eschen of the PSC, local cable operators should not be exempt since VoIP calls are initiated via their facility, which is based in the state of Missouri. Pure plays like Vonage do not have this restriction and are hence not subject to state regulation. Comcast's stance is that, according to the FCC, IP-enabled services connected to the PSTN (Public Switched Telephone Network) system is a telecommunications service and hence subject to FCC rulings, not state regulations.
All I can say is that this is one scenario where if state and federal regulations ultimately clash, we'll be left with a dog's breakfast, with some VoIP providers enjoying greater advantages than others. In the US, state regulations usually trump federal, but there has to be some unanimous agreement when it comes to VoIP services.
For too many reasons to list here now, I support the idea that VoIP is a telecommunications service and thus subject to a homogeneous federal ruling. I don't, however, support the FCC's pick-and-choose decision on who is exempt and who is not. Telecom services are telecom services, as far as end users are concerned.
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