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FCC Urged To Act Quickly On VoIP: Page 2 of 3

"A lot of this [business activity] is in jeopardy," Citron said.

While Kennedy herself is a proponent of light-touch regulation on technologies like VoIP, other members of the California PUC are actively trying to exercise regulatory control over the technology and VoIP service providers. Other states, like New York, are also trying to keep a regulatory clamp on VoIP.

The problem of such attempts at local regulation, VoIP proponents said, is the potential of a patchwork of regulations that will put undue strains on startups (like Vonage) who don't have the resources to comply with different forms of VoIP regulation for a large number of different states.

If states are allowed to set up individual sets of regulations, "it will kill the [VoIP] industry," said Charles Davidson, a commissioner with the Florida Public Utilities Commission.

While the FCC is generally in agreement with a national VoIP policy -- both chairman Michael Powell and commissioner Kathleen Abernathy made statements to that effect in speeches at Supercomm on Tuesday -- the sometimes tedious process of FCC rulemaking can frustrate the fast-paced technology business.