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TMCNet: Cuomo's Internet phone deregulation bill dead

[March 23, 2012]

Cuomo's Internet phone deregulation bill dead

ALBANY, Mar 23, 2012 (Times Union - McClatchy-Tribune Information Services via COMTEX) -- Gov. Andrew Cuomo has removed legislation from his executive budget that would have protected telecommunications companies offering Internet phone service from regulation.

Unions and consumer advocacy groups had opposed the bill, which had support of companies like Verizon and Time Warner Cable that argued the absence of the law provided an uncertain regulatory environment.

New York state currently doesn't regulate Internet phone service, although it heavily regulates traditional wire line phone service. Verizon is the largest provider in the state.

Over recent years, the telecommunications industry has pushed legislation across the country to prevent states from regulating Internet phone service. They argue such regulation would stifle innovation and competition and would be nearly impossible because of the wide array of players such as Vonage and Skype that don't have a physical network in the state like Verizon and Time Warner Cable.

Cuomo spokesman Josh Vlasto confirmed that the bill was no longer included in the budget, but he said the governor did not immediately have a comment on why the legislation did not survive.

Verizon still gets a significant amount of its revenues from its traditional phone service, but it has increased the amount of alternative phone offerings it sells to customers as it seeks to compete with cell phone and cable companies.

"Verizon is very disappointed that New York's lawmakers, who want the public to believe that 'New York is open for business,' will not be acting on this important measure to modernize the state's outdated telecommunications laws in this year's budget," said Verizon spokesman John Bonomo. "New York has fallen behind 21 other states in taking this step, losing its leadership position in terms of promoting business and consumer-friendly telcom reforms. If New York wants to maintain its key role in the global economy, it needs telcom laws that reflect 21st century realities." ___ (c)2012 Times Union (Albany, N.Y.) Visit Times Union (Albany, N.Y.) at www.timesunion.com Distributed by MCT Information Services

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