U.S. States Moving to End Universal Service

There are important regulatory developments regulatory developments occurring at the state level in the United States these days. 


In a significant development for the U.S. 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.


For anybody who has been in the telecom business for a while, that is a startling notion, though the practical implications, in an immediate sense, could vary, based on how each of the statutes are worded, and what service providers believe they can do in their local marketplaces.


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.