There continues to be an industry-wide battle over the transition to an IP-based network, especially for CLECs attempting to negotiate interconnection agreements for the exchange of IP voice traffic with ILECs.  Here are some recent key events:

• The Illinois Commerce Commission issued an order in Case No. 12-0550 stating that the FCC had not ruled that IP interconnection could be compelled pursuant to the Section 251 interconnection rules of the 1996 Act
• The issue is currently being debated by the Massachusetts Department of Telecommunications and Cable
• Sprint began arbitration with AT&T in Michigan on this issue 

The pressure is building on the Commission to address the IP interconnection issue.  The Commission appears hesitant to do so because it fears it would have to finally determine if VoIP services are telecommunications or information services.  It well knows that any such ruling would lead to yet another multi-year court case.  However, as CLECs continue to struggle to negotiate interconnection agreements, something will have to be done.  Hopefully the DC Circuit Court decision on Verizon’s appeal of the Commission’s Net Neutrality will provide guidance on whether the Commission will be permitted to use its ancillary power to regulate an information service.  If so, it could similarly declare VoIP as an information service and regulate it using its ancillary authority.  From the Commission’s perspective, this would probably be preferable to declaring VoIP as a telecommunications service thus triggering immediate and unending court battles.  We shall see, since a decision on the Net Neutrality is expected within the next few months.  

By Andrew Regitsky, President, Regitsky & Associates