USTA Telecom 03 -- A Regulatory Panel Discussion

"If consumers have choices between multiple providers, reducing regulation is good," said FCC Commissioner Kevin Martin, speaking at USTA Telecom 03. On the converse side, where not much competition has taken hold, Martin believes regulations should remain in force. Regarding the Universal Service Fund (USF), Martin said he was troubled by some state and federal decisions that imply that wireless is a full substitute for wireline service or that USF could be used as a means of regulating competition. On the question of Vonage and other broadband phone services, Martin proposed that Universal Service Fund contributions should be based on active phone numbers - this way, anyone leveraging the PSTN for their service would need to contribute to the infrastructure.


The market is a much better protector of consumer welfare than regulators, said Charles Davidson, Commissioner, Florida Public Service Commission. From his perspective, FCC policies should be careful not to pick winners and losers based on technology platforms. The markets that he oversees are "wildly competitive" but Davidson said Florida's Public Service Commission must continue to hear and respond to the volumes of consumer complaints.


Regulators should intervene only when a market is not functioning properly, agreed Nancy Victory, Former Assistant Secretary, U.S. Dept. of Commerce. Admittedly, the challenge is agreeing on what "not functioning properly" means. She described the USF as a hallmark of the old regulatory world, saying it is time for "an extreme makeover." She said it would be very helpful for Congress to legislate a better telecom regulatory framework, but that she was realistic that this would not happen soon. The Telecom of 1996 took many years to develop and pass - meanwhile, she noted, the marketplace is moving fast. The issues are not only complex, but they are also charged with emotion. Every issue is pitched by industry representatives as a life or death situation, making it difficult for regulators to take action. Victory asked for the industry to compromise and simplify the issues presented to the regulatory authorities for resolution.