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Colorado Gov. Bill Ritter vetoed a bill partially deregulating phone service in the state because it would have permanently excluded Voice over Internet Protocol (VoIP) technology from regulation.

 

According to Ritter's veto message dated June 7, House Bill 10-1281 "would permanently exempt interconnected voice-over-Internet-protocol, commonly known as VoIP, from regulation by the Colorado Public Utilities Commission."

 

He described VoIP as "a relatively recent innovation that allows consumers to place calls through a broadband Internet connection instead of through telephone lines."

 

"As a nascent technology, VoIP has had little regulation, either in Colorado or at the federal level, in order to allow VoIP to develop into a competitive alternative to traditional phone lines," he continued. "Today, VoIP is flourishing. Companies like Comcast (News - Alert) have turned VoIP into a viable and growing alternative to landlines, giving the consumers of Colorado a greater variety of choices for voice communication.

 

He also noted that the bill would reclassify Qwest (News - Alert) Communication's local exchange service from Part 2 to Part 3 in the State telecommunications regulatory framework, which means that it would be subject to less regulation in order to more fairly compete with new technologies.

 

The Denver Business Journal called the veto of HB 1281 "a blow" to Qwest Communications. "The bill loosened regulations on the Denver-based telecom's traditional voice services and would have allowed Qwest more latitude to change prices and bundle services without first getting the OK from regulators," according to the Journal.

 

In addition, Ritter noted that federal regulators are currently weighing how to classify VoIP service in future telecom rules. For Colorado to declare the service unregulated now would contribute to a confusing patchwork of rules governing what's becoming an increasingly prevalent voice service, Ritter's statement said.