Eliminates state regulation of voice over internet protocol service in order to facilitate competition and ensure consumers receive the maximum benefit of competition.
Ayes (44): Alesi, Ball, Bonacic, Carlucci, DeFrancisco, Diaz, Dilan, Farley, Flanagan, Fuschillo, Gallivan, Golden, Griffo, Grisanti, Hannon, Huntley, Johnson, Kennedy, Klein, Kruger, Lanza, Larkin, LaValle, Libous, Little, Marcellino, Martins, Maziarz, McDonald, Nozzolio, O'Mara, Parker, Ranzenhofer, Ritchie, Robach, Saland, Sampson, Savino, Seward, Skelos, Smith, Valesky, Young, Zeldin
Nays (18): Adams, Addabbo, Avella, Breslin, Duane, Espaillat, Gianaris, Hassell-Thomps, Krueger, Montgomery, Oppenheimer, Peralta, Perkins, Rivera, Serrano, Squadron, Stavisky, Stewart-Cousin
Ayes (42): Adams, Alesi, Ball, Bonacic, Carlucci, DeFrancisco, Dilan, Farley, Flanagan, Fuschillo, Gallivan, Golden, Griffo, Grisanti, Hannon, Johnson, Kennedy, Klein, Lanza, Larkin, LaValle, Libous, Little, Marcellino, Martins, Maziarz, McDonald, Nozzolio, O'Mara, Parker, Ranzenhofer, Ritchie, Robach, Saland, Sampson, Savino, Seward, Skelos, Smith, Valesky, Young, Zeldin
Nays (18): Addabbo, Avella, Breslin, Diaz, Duane, Gianaris, Hassell-Thomps, Huntley, Krueger, Montgomery, Oppenheimer, Peralta, Perkins, Rivera, Serrano, Squadron, Stavisky, Stewart-Cousin
Absent (1): Espaillat
TITLE OF BILL: An act to amend the public service law, in relation to eliminating state regulation of VoIP service in order to facilitate competition and ensure consumers receive the maximum benefit of competition
PURPOSE: Voice over Internet Protocol (VoIP) is a technology application that uses a broadband Internet connection to transmit voice telecommunications over the Internet. The rates, terms and conditions of VoIP service, which has been offered in New York State since the early 2000's, are not regulated.
JUSTIFICATION: VoIP service converts voice communications into digital packets that travel over the Internet. When a VolP call is placed to a traditional telephone number, the digital packet is converted to a traditional Public Switched Telephone Network (PSTN) signal before it reaches its destination. VoIP allows a call to be made directly from a computer, a special VoIP phone, or a landline phone connected to an adaptor.
VoIP brings increased efficiency, reliability and functionality to voice communications. The Internet's use of computer processing allows for decreased use of transmission facilities, and automatic rerouting around malfunctioning routers or damaged lines without relying on a separate telephone signaling network. Since the cost of computer processing is decreasing and the demand for communications bandwidth is increasing, IP networks offers a more economical and robust means for providing communication connections than the traditional networks.
This legislation is especially important for consumers living in rural upstate New York who have yet to enjoy the benefits of broadband and voice competition. Adopting the legislation could help rural consumers to benefit from voice competition, rural telecommunications companies to extend broadband more affordably, remote businesses to transform the way they do business, rural communities to connect to a new world of remote job opportunities, and rural economies to become an engine for higher paying information age jobs. Rather than outsourcing jobs oversees, some progressive companies are now using VoIP to "home-source" jobs to rural communities.
This legislation will enable a consistent and predictable policy framework and thus foster VoIP innovation to grown in New York.
SUMMARY OF THE BILL: This bill updates the Public Service Law to encourage the deployment of new technologies. The legislation does not affect the assessment of E-911 fees, telecommunications relay service fees, or federal or state Universal Service Fund fees on VoIP service. Payment of intercarrier compensation that applies to a VoIP carrier's use of the public switched telephone network is also
preserved. Finally, New York State consumer protections still apply (e.g., unfair or deceptive trade practices, payment and/or billing request paper bill and/or pay by mail).
LEGISLATIVE HISTORY: New legislation.
FISCAL IMPLICATIONS: No fiscal costs to the state or localities. The state as a whole should see increased economic activity and investment when the right business model is developed to lure broadband investment in the state.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 5769 2011-2012 Regular Sessions IN SENATE June 15, 2011 ___________Introduced by Sen. MAZIARZ -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the public service law, in relation to eliminating state regulation of VoIP service in order to facilitate competition and ensure consumers receive the maximum benefit of competition THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 2 of the public service law is amended by adding a new subdivision 28 to read as follows: 28. THE TERM "VOICE-OVER-INTERNET PROTOCOL SERVICE" OR "VOIP SERVICE" WHEN USED IN THIS CHAPTER, SHALL MEAN ANY SERVICE THAT: (A) ENABLES REAL-TIME TWO-WAY VOICE COMMUNICATIONS THAT ORIGINATE FROM OR TERMINATE TO THE USER'S LOCATION USING INTERNET PROTOCOL OR ANY SUCCESSOR PROTO- COL; (B) USES A BROADBAND CONNECTION FROM THE USER'S LOCATION; AND (C) PERMITS USERS GENERALLY TO RECEIVE CALLS THAT ORIGINATE ON THE PUBLIC SWITCHED TELEPHONE NETWORK AND TO TERMINATE CALLS TO THE PUBLIC SWITCHED TELEPHONE NETWORK. S 2. Paragraph d of subdivision 1 of section 5 of the public service law, as amended by chapter 155 of the laws of 1970, is amended to read as follows: d. To every telephone line which lies wholly within the state and that part within the state of New York of every telephone line which lies partly within and partly without the state and to the persons or corpo- rations owning, leasing or operating any such telephone line. NOTWITH- STANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, NEITHER THE COMMIS- SION, THE DEPARTMENT OF PUBLIC SERVICE, NOR ANY OTHER DEPARTMENT OR AGENCY OF THIS STATE, OR ANY POLITICAL SUBDIVISION THEREOF, SHALL HAVE AUTHORITY TO REGULATE THE ENTRY, RATES OR OTHER TERMS OF SERVICE OF VOICE-OVER-INTERNET PROTOCOL SERVICE. PROVIDED, HOWEVER, THAT NOTHING IN THIS PARAGRAPH SHALL AFFECT THE AUTHORITY OF THE STATE OR ITS AGEN- CIES TO ENFORCE SUCH REQUIREMENTS AS ARE OTHERWISE EXPRESSLY PROVIDEDEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD13156-01-1 S. 5769 2
FOR BY FEDERAL LAW, INCLUDING, BUT NOT LIMITED TO, CONNECTION TO 911 FACILITIES, THE COLLECTION OF ENHANCED 911 FEES, TELECOMMUNICATIONS RELAY SERVICE FEES, OR FEDERAL UNIVERSAL SERVICE FUND FEES ON VOICE-OVER-INTERNET PROTOCOL SERVICES THAT MAY BE DETERMINED TO APPLY, OR BE CONSTRUED TO (1) MODIFY OR AFFECT THE RIGHTS, OBLIGATIONS OR AUTHORITY OF ANY ENTITY, INCLUDING BUT NOT LIMITED TO THE PUBLIC SERVICE COMMISSION, TO ACT PURSUANT TO, OR ENFORCE THE PROVISIONS OF 47 U.S.C. 251, 47 U.S.C. 252, ANY APPLICABLE TARIFF, OR ANY STATE LAW, RULE, REGU- LATION OR ORDER RELATED TO WHOLESALE RIGHTS, DUTIES AND OBLIGATIONS, INCLUDING THE RIGHTS, DUTIES, AND OBLIGATIONS OF LOCAL EXCHANGE CARRIERS TO INTERCONNECT AND EXCHANGE VOICE TRAFFIC; (2) MODIFY OR AFFECT THE AUTHORITY OF THE PUBLIC SERVICE COMMISSION TO IMPLEMENT, CARRY OUT, AND ENFORCE SUCH PROVISIONS, RIGHTS, DUTIES, OBLIGATIONS OR TARIFF THROUGH ARBITRATION PROCEEDINGS OR OTHER AVAILABLE MECHANISMS AND PROCEDURES; OR (3) AFFECT THE PAYMENT OF SWITCHED NETWORK ACCESS RATES OR OTHER INTER- CARRIER COMPENSATION RATES, AS APPLICABLE. NOTHING HEREIN SHALL BE CONSTRUED TO AFFECT THE APPLICATION OR ENFORCEMENT OF OTHER STATUTES OR REGULATIONS THAT APPLY GENERALLY TO THE CONDUCT OF BUSINESS IN THE STATE, INCLUDING CONSUMER PROTECTION, OR UNFAIR OR DECEPTIVE TRADE PRAC- TICES RULES OF GENERAL APPLICABILITY. S 3. Subdivision 1 of section 90 of the public service law, as amended by chapter 414 of the laws of 1981, is amended to read as follows: 1.
[The]EXCEPT AS PROVIDED IN PARAGRAPH D OF SUBDIVISION ONE OF SECTION FIVE OF THIS CHAPTER, THE provisions of this article shall apply to communication by telegraph or telephone between one point and another within the state of New York and to every telegraph corporation and telephone corporation. S 4. This act shall take effect immediately.