A well-publicized piece of legislation -- sponsored by U.S. Senator
John Sununu (R-NH) and backed by IP voice providers -- intended to
deregulate VoIP services was radically changed during a mark-up
session by the Senate Commerce Committee last week. In a surprising
turn of events, the Committee voted 13-9 to amend the bill to require
VoIP providers to be subject to intrastate access charges, universal
service obligations, E-911 and CALEA responsibilities. The action
taken by the senators is an important step toward ensuring the
long-term stability of the universal service system and the overall
fairness of intercarrier compensation. It also signifies a subtle
shift in focus from technology interests to public interests. Prior to
the mark-up, Senator Sununu was expected to be successful in passing
his bill.
The amended version of S. 2281 -- the "VoIP Regulatory Freedom Act of
2004" -- reflects many concessions to rural consumers. Important among
these concessions is the amendment by Senator Byron Dorgan (D-ND)
preserving state commissions' authority over intrastate universal
service and access funding. This amendment helps ensure that all
carriers, regardless of the technology they use, will support
universal service and pay for their use of other companies' networks
to reach their customers.