[Missouri Counsel] Van Eschen said the ruling barring state regulation is based on a Vonage customer’s ability to “plug in anywhere in the broadband world.†Not so with a local cable operator, such as Comcast and Time Warner Cable. Their customers must initiate a call on their plant, located in Missouri.
So, Missouri’s case is based on a literal technicality. This begs a more fundamental question: just what constitutes eligibility for public utilities regulation? With the glaring exception of emergency calling, the Internet has done a pretty good job of governing itself in its two-decade existence. So, just what are the underlying reasons for regulation of Internet-based voice services such Comcast’s:
- The government (federal and state) recognizes the swift and successful emergence of IP voice services.
- The government doesn’t want to miss out on any loot.
- Control over the so-called public infrastructure is maintained through tarriffing and licensing. Without such controls on IP, the economic and social impact of such services is outside the domain of the governing bodies.
So, you could conclude this is all about two things: money and power. But there’s another question that needs to be answered, and fast: How does the consumer community benefit when IP voice services are regulated? I argue that further encumbrance of innovative technology hampers the ability for thought leaders to get that technology out to the masses. Cases in point:
- Look how long it’s taken domestic cell-carriers to IP-enable their networks. Today’s wedge solutions like GPRS and EVDO are shoehorned into the working infrastructure that has evolved partly to satisfy the revenue-hungry regulators.
- Fios. Where the heck is it? If the government hadn’t cut the ILECs such a sweet deal ten years ago, fiber might indeed be everywhere right now. Instead, we’re waiting business interests that have no competitive incentive to roll it out, since they’ve been guaranteed no competition once the fiber is buried.
So am I big fan of telco regulation? It think it’s fair to say that IP communications technology has the best impact when politicians keep their grubby hands off. And yes, for those of you keeping track, I DID just defend Comcast.


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