[January 21, 2005]

Stearns Legislation Urges Congress to Reform Telecommunications

BY JOHANNE TORRES

Federal Communication Commission (FCC) Chairman Michael Powell’s resignation, expected to take effect today, makes most of us in the industry think about what is in the cards for the challenged status of VoIP regulation in the United States. This New Year 2005 promises to be a key year for the telecommunications industry, as the U.S. Congress faces major challenges when trying to reform the space.

For now, we can look at how the advancements being made by political figures such as Rep. Cliff Stearns (R-FL) are pushing the U.S. Congress to take action towards the reform of telecommunications. Last week, Stearns offered legislation to remove barriers to the deployment of Advanced Internet Communications Services (AICS), promoting expansion in new applications such as Voice over Internet Protocol (VoIP). Once again, Rep. Rick Boucher (D-VA) joined Stearns in offering this important legislation. This action follows Stearns’ similar legislation—the H.R. 4757 Advanced Internet Communications Services Act a year ago.

"Although the FCC decision in November to declare VoIP services interstate in nature, and thus subject to the Commission's authority, represented a step in the right direction, legislation still is needed to change the current regulatory scheme to allow these technologies to flourish," said Stearns in an official statement.  "The existing web of complex regulations discourages investments and innovations in these products and services."

Stearns’ decision is key, as his legislation once again offers advanced Internet communications a measure that will most likely enhance the development of new technologies such as VoIP by protecting them from the intricacies of taxing and regulations at state-level.

"This legislation offers regulatory certainty for these services, which will encourage investments in these technologies and their deployment," added Stearns. The Advanced Internet Communications Services Act follows last year's legislation by creating a new definition of services that would encompass IP-based technologies, such as VoIP.  The bill grants exclusive regulatory authority to the FCC and requires the Commission to establish complete regulatory parity among cable operators, traditional telecommunications carriers, and all providers of AICS.