by Al Senia
Now it's California's turn to investigate the future of VoIP.
The day before the FCC presented its first ruling about Internet phone services last month, California's Public Utilities Commission pushed forward with its own plan to regulate the Internet telephone business.
The impact on the industry could be significant. California is the most influential of some 25 states now drafting new Internet phone rules, and the PUC's move shows that the states are anxious to take the issue on despite the unfolding national regulatory debate.
Officially, the probe, which is expected to take about 18 months, is focused on what kind of VoIP telephony should be subject to state regulation. But in its order instituting the investigation, state regulators provided a glimpse of the real issues at hand: Loss of state control over new telephone technology; the impact of unregulated competition on consumer protection; the impact of IP telephony on universal service programs; and the potential loss of millions of dollars in state tax revenue.
Noting that SBC and Time-Warner "are actively migrating customers to VoIP technology" in the state, PUC officials say lower rates and the availability of new features could be beneficial to California consumers. But the Commission also projects that by 2008, VoIP will account for between 40 and 43% of total intrastate telecommunications revenue in the Golden State. That translates to a loss of between $183 million and $407 million in lost revenue for the state's five mandated universal service programs. The fear is that if VoIP grows too popular, it could result in steep increases in public program surcharges for remaining customers to ensure basic telephone services in rural areas.
VoIP also presents issues of customer privacy, customer notice for discontinuance of service, cramming and slamming," the PUC warns.
Among other things, the state is considering whether VoIP providers might be forced to pay access charges to interconnect with the Public Switched Telephone Network and whether providers should be compelled to provide emergency 911 services.
Still unclear is whether the California PUC probe will wind up usurping the FCC's own rulings--or be rendered irrelevant by the federal panel
The day before the FCC presented its first ruling about Internet phone services last month, California's Public Utilities Commission pushed forward with its own plan to regulate the Internet telephone business.
The impact on the industry could be significant. California is the most influential of some 25 states now drafting new Internet phone rules, and the PUC's move shows that the states are anxious to take the issue on despite the unfolding national regulatory debate.
Officially, the probe, which is expected to take about 18 months, is focused on what kind of VoIP telephony should be subject to state regulation. But in its order instituting the investigation, state regulators provided a glimpse of the real issues at hand: Loss of state control over new telephone technology; the impact of unregulated competition on consumer protection; the impact of IP telephony on universal service programs; and the potential loss of millions of dollars in state tax revenue.
Noting that SBC and Time-Warner "are actively migrating customers to VoIP technology" in the state, PUC officials say lower rates and the availability of new features could be beneficial to California consumers. But the Commission also projects that by 2008, VoIP will account for between 40 and 43% of total intrastate telecommunications revenue in the Golden State. That translates to a loss of between $183 million and $407 million in lost revenue for the state's five mandated universal service programs. The fear is that if VoIP grows too popular, it could result in steep increases in public program surcharges for remaining customers to ensure basic telephone services in rural areas.
VoIP also presents issues of customer privacy, customer notice for discontinuance of service, cramming and slamming," the PUC warns.
Among other things, the state is considering whether VoIP providers might be forced to pay access charges to interconnect with the Public Switched Telephone Network and whether providers should be compelled to provide emergency 911 services.
Still unclear is whether the California PUC probe will wind up usurping the FCC's own rulings--or be rendered irrelevant by the federal panel
