More Deregulation for Landline Voice

In a significant development for the landline telecommunications business, states are passing or considering laws to end the requirement that phone companies provide "universal service" to every potential customer in competitive markets. Definitions might vary, but the Indiana version of the law defines what we might call effective competition as situations  "where at least two other companies provide voice service, whether it's wired phone, Internet services such as Skype, or mobile access."


Indiana and Wisconsin are the two most recent states to end the requirement, and many others, including Alabama, Kentucky and Ohio, are considering it, USA Today reports.

In California, a State Senate bill to deregulate VOIP services has passed the Senate Energy, Utilities and Telecommunications Committee by a vote of 11-0.  

The bill,  SB 1331, would eliminate the power of the state’s Public Utilities Commission to regulate VOIP services, which historically has had regulatory authority over public utilities, including telephone companies.

In some ways, the move was inevitable. California deregulated nearly all landline service six years ago.