Missouri consumers are just starting to see the benefits of meaningful phone service competition. Much of this competition is facilities based, physical structure built in Missouri, while other competition comes from providers such as Vonage who ride on others' networks -- but much of the competition and new services result from the benefits of digital Internet Protocol technology.

Unfortunately, Missouri's Public Service Commission is trying to regulate this new voice technology and service. The Commission is also splitting hairs to draw distinctions among providers -- aiming to put different, heavier regulation on the facilities-based IP voice technology (commonly called Voice over Internet Protocol or VoIP) such as that offered by network owners, than on VoIP offered by nonfacilities-based providers such as Vonage.

The wisdom of such regulation is up for debate in the Missouri legislature this week. Missouri legislators have a golden opportunity to set Missouri on the path to technological innovation that many others have successfully trod.

According to IPI Senior Research Fellow Barry M. Aarons, "Instead of moving to deregulate old technologies that have no need for the competition- squelching, price-hiking supervision, the Missouri Commission is moving to regulate new technologies harming advances in technology, service to customers, and state competition in the process."

In today's telecommunications world there are many technologies competing for the delivery of two-way voice communication. The less regulation, the more consumer choice there will be, and the lower consumer prices will drop.

Missouri is bucking a national trend to encourage investment and innovation in new technologies. States like Florida and Indiana have recognized the vast consumer benefits of competition and have acted to reduce, streamline or even completely eliminate regulation of IP phone services.