California Public Utilities Commission delays taking stand on Internet phone measure

Legislation that opponents fear will strip the state Public Utilities Commission of its power to regulate Internet phone services in California put the commission on the spot, and it punted. For the second consecutive meeting, the commission postponed taking a stance on the proposal that would prohibit the PUC and other state agencies from regulating phone service using Internet connections. The commission, meeting in Fresno, had been expected to oppose a Senate bill written by state Sen. Alex Padilla (D-Pacoima) on behalf of AT&T, Verizon Communications, cable television companies and a number of high-tech business groups. Proponents have argued that the bill would simply lock into law the PUC's current generally hands-off attitude toward Voice over Internet Protocol phone service and leave regulation to the Federal Communications Commission. Silicon Valley investors, entrepreneurs and engineers said they needed legislative "certainty" that they would not be hit with new regulations so they could come up with new products and services in an extremely competitive telephone market.