The Net Neutrality Decision And The IP Transition. What Happens When You Can’t Make Phone Service Work Like A Phone Service?

[Commentary] While an appeals court decision to overturn the Federal Communications Commission’s Open Internet rules ripples across just about every area of FCC jurisdiction, it has its most immediate impact on the transition of the phone system to all Internet Protocol (IP).

At a glance, the biggest losers are cable operators (except Comcast), competitive local exchange carriers (CLECs), and anyone else that wants mandatory interconnection or cares about call completion. That means resolving the rural call completion problem just became harder, since VOIP providers cannot, now, be subject to the duty to complete calls. The most recent FCC Order, which imposes reporting requirements is still OK. But the original declaratory ruling requiring IP-based providers to actually complete calls is probably a dead letter. On the other hand, the decision potentially empowers the state Public Utility Commissions (“PUCs”), or gives the FCC power to delegate to state PUCs, the ability to override the laws passed in 27 states that prohibit any regulation of IP based services, and to override limits on municipal broadband.