NCL Letter Regarding VOIP Regulatory Freedom Act of 2004

July 9, 2004

The Honorable John McCain
Chairman
Senate Committee on Commerce, Science, and Transportation
Washington, DC 20510

The Honorable Ernest Fritz Hollings
Ranking Member
Senate Committee on Commerce, Science, and Transportation
Washington, DC 20510

Dear Chairman McCain and Senator Hollings:

The National Consumers League (NCL), America’s pioneer consumer advocacy organization, is very concerned about S. 2281, the “VOIP Regulatory Freedom Act of 2004.” Voice Over Internet Protocol has the potential to provide great benefits to consumers. However, there are many issues that must be thoughtfully deliberated and decided at the threshold of this new technology in order to ensure that the basic principles of universal service, public safety, consumer protection, and disability access are preserved.

There are several provisions in S. 2281 that are ill-considered or premature, but of the greatest concern to NCL is the sweeping preemption of state authorities to protect consumers’ interests and the proposal for industry-developed voluntary guidelines in lieu of regulations to govern this new form of telecommunications service.

NCL believes that consumers who switch to VOIP should not be obliged to give up the important legal protections and social obligations that applied to their previous telecommunications service. The complex issues that VOIP raises are currently being considered at the Federal Communications Commission, and NCL plans to bring stakeholders together for a forum on the subject sometime in early September.

Meanwhile, NCL urges you to take no action to advance S. 2281 this year. Thank you very much for considering our views on this important matter.

Sincerely,

Susan Grant
Vice President, Public Policy