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Wood Asserts Calif. PUC Has A Role In VoIP's Future: Page 2 of 3

Wood also noted that by decreeing VoIP and similar services to be free of regulation (and accompanying taxes), regulators could be setting up a regulatory arbitrage situation, where existing voice carriers could use the IP infrastructure to decrease the amounts they currently pay.

"The large incumbents have unregulated affiliates who are poised to offer VoIP, if this regulatory arbitrage takes place," Wood said. What happens then, he said, could be "a very sudden de-financing" of subsidies for programs like basic voice communications for low-income residents, and for library Internet services. "There are serious consequences [of a loss of funding] that have to be considered," he said.

Wood agreed with most of the other speakers Monday, in the opinion that the regulatory issues being raised by VoIP and other broadband technologies are neither easy to understand, nor quick to be solved. Even the California PUC itself has flip-flopped on whether or not to regulate, with the matter currently under consideration.

"Even the whole question over who has jurisdiction is not understood," Wood said. "The feds may indeed make a decision that pre-empts the states. No regulation [of VoIP] is certainly a choice you can make."

But if Wood has his way, California's PUC will take a leadership role in ensuring that important public needs -- such as the need to have emergency 911 services in VoIP connections, for instance -- aren't left up to the good will of the industry.