The California Public Utilities Commission has long sought the authority to regulate VoIP services in the state- and to allow taxation of services and equipment as well.
But since the FCC has given strong indication they reserve the right to do this, the Cal. PUC apparently has reconsidered.
When (like Charlie Rich) they last got "behind closed doors," the state's PUC voted 3-1 to pull out of its appeal of a Federal Communications Commission rule designating VoIP as an interstate service beyond state control.
It will be interesting to see how the politics go in other states. Many are deficit-ridden and look on VoIP as an easy revenue source. Some of these same states - as I noted in a post earlier today, really don't understand that VoIP is not telephony.
Will regulators in other states continue to try and tax VoIP - or at least oversee it? Or will California PUC's white flag set a tone other states will follow? TalkBack to us.