Since the Winter 2002 NARUC meetings, the State Public Utility Commissioners ("PUC") around the United States have increased their focus of VoIP technologies and some States have in fact started taking specific actions which the US VoIP Industry now needs to pay special attention to.
October 13, 2003: New York State PSC opens up public comment period of until October 31st to file comments on Frontier Telephone's recent complaint against Vonage. Details posted in the Jeff Blog.
October 8, 2003: Yesterday a federal appeals court issued a permanent injunction against the recent ruling by the Minnesota Public Utilities Commission to regulate Vonage.
It will be real interesting to read the details of the ruling when it becomes available.
On the surface this looks to be great news and a major victory for the IP Communications Industry. This victory should help preempt other US States from taking similar actions against other IP Communication companies around the US.
October 7, 2003: Public Hearings are now also scheduled for Washington State on October 20th.
October 5, 2003: Public Hearings are now scheduled to take place in both California and Pennsylvania to explore the future regulatory status of VoIP in these two States. The public hearing in Pennsylvania is scheduled to take place on October 14th and the hearings in California are scheduled to take place on October 30th.
September Updates
September 30th: California follows Wisconsin - California follows Wisconsin in making it known that those who offer VoIP services in the State of California need to file the necessary paperwork to conduct the business of a "telecommunications utility.". Voxilla reports that VoicePulse CEO, Ravi Sakaria has reported receiving a letter from John Leutza, Director of the California PUC's Telecommunications Division, demanding that the company 'file an application with the Commission for authority to conduct business as a telecommunications utility no later than October 22, 2003. VoicePulse is not alone in receiving such notices.
Wisconsin was the first state in the month of September to make it known that they feel that those who offer VoIP services in their State are subject to the rules of traditional service providers.
On September 12th 8x8 made public that they received a receipt of notification from the PSC of Wisconsin. Chances are that there are other voice over broadband service providers who also recently received a similar receipt of notification from the PSC of Wisconsin. Wisconsin is of the opinion that they already have jurisdiction over VoIP without making a finding - their statute is very broad. Wisconsin has not opened any new dockets or investigations and are acting based on jurisdiction they feel they already have.
On September 8th I presented at the Cato Institute in a panel entitled:" Internet Telephony Bring About a Revolution in Telecom Policy?". A copy of my presentation is available here.
US States on the pulver.com VoIP Watchlist:
In response to a petition filed by the states' incumbent carriers, the Alabama Public Service Commission (PSC) will be soliciting comments on whether providers of intrastate phone-to-phone IP service or other VoIP configurations (1) fall within the state's statutory definition of a regulated "transportation company" (which includes telephone companies), (2) are or should be subject to PSC rules applicable to telephone service, and (3) must pay the ILECs' intrastate access charges for the origination or termination of non-local traffic. See Docket No. 29016. We are awaiting a call-back to determine whether an order has been issued and comment deadlines have been established.
The State PUC is looking for comments on whether or not a company that is providing VoIP services is "transmitting telephonic messages" as defined by Ohio law. It turns out that under Ohio law, companies that are in fact "transmitting telephonic messages" are a common carrier subject to the State PUC's laws. Comments for the Ohio proceeding were due by June 13th. Interesting side note, the State PUC is also asking that all existing VoIP service providers send in a questionnaire to the State PUC back in May. From what I heard, companies who decide to fill-in the questionnaire should be careful how they reply to it.
In some ways I find these actions ironic since the penetration of broadband VoIP services in the United States in reality today is still quite low (less than 150,000 consumers) and yet some lobbyists are hard at work to build in barriers to the innovative technologies and next generation services which only IP communications can offer.
Back in 1996 the VON Coalition was founded to help fight the regulation of Internet Telephony in the United States. It seems to me that now would be a great time for all companies in the VoIP industry to join (or re-join) the VON Coalition so that we can have a stronger and more effective voice not only in Washington, DC, but also on a State level. The VON Coalition tries to be representative of the industry. It relies on relatively modest dues from industry members and on the active participation of knowledgable people. Our toughest job is to educate policymakers about VoIP, so they respond to it rationally. If we don't do that, then policymakers only hear from those who are ignorant or have an incentive to saddle us with regulations.
While those in the VoIP Industry can look to work with the VON Coalition to have an impact, and keep internet telephony unregulated in the US, now would also be a great time for individual US consumers and people who work in the industry, to take the time to reach out to their respective State Commissioners and have their voices heard as well. Regulations are able to get passed on a State level too often just because too many people are silent on the pending laws until after they become law. As a community we have an opportunity today to stand up and be counted and start taking the steps to email our State Public Utility Commissioners and let them all know where we feel they should stand on supporting the use of VoIP in their respective States.
We have not yet begun to fight!
If you live in the USA and care about keeping VoIP regulation free in your State, you can still help keep VoIP regulation free in the USA.
Jeff Pulver
pulver.com
jeffp@pulver.com
October 9, 2003