Colorado’s Gov. Bill Ritter has decided to let the FCC answer the question of whether or not to regulate VoIP in Colorado. And, to let the Colorado’s Public Utilities Department handle the question of whether or not to lower Qwest’s level of regulation so that the landline phone company can better compete with cable phone companies like Comcast, and voice over IP phone companies like Vonage and Phonepower.
Internet phone companies like Vonage, Phonepower and Magicjack don’t have any taxes or regulation per se, other than the 3% federal excise tax and free market pressures . When a VoIP company offers crappy phone service, their customers talk about it, and they either fix their problems quickly, or they go under. That’s one of the good things and bad things about being a technology product; your customers can make or break you online in the blink of an eye.
While VoIP companies like Comcast can change their digital phone plans and fees instantly, to mirror the moods of their customers, landline phone companies like Qwest can’t. Qwest has to take any rate increases or decreases to the FCC, and then wait for that big chunk of worthlessness to get back to them in an untimely manner. Qwest is also required to collect taxes for every local, state and federal governement that decides that killing landline phone service in the United States is the best way to make money for the local school system, dog park or other “PET” projects.
In all fairness, since there really isn’t any way to regulate VoIP, and I sure don’t want to see the FCC get their grubby little hands on this cool piece of technology, landline phone companies such as Qwest and AT&T should be let off the telecom regulation hook. Let them compete fairly with VoIP companies, and if they can’t survive, then let them die.