Telecommies

In Maryland a new law establishes a 6% tax on computer services (specifically web design, computer repair, and programming), starting this July (WSJ).

Perhaps local state legislators aren’t aware, but these services can easily be displaced outside Maryland borders…

Verizon’s pinned down by state regulations in Maryland, Virginia, and New Jersey. Existing telecom regulations leave Verizon unable to compete with Comcast for internet service.

While modern, cost-conscious, consumers move their home phone service over to internet carriers, Verizon suffers. Why? Traditional phone providers are heavily regulated in these states, while internet service isn’t. Functionally, Verizon is limited strictly to traditional phone service, even as phone service moves online. The Baltimore Business Journal explains:

The Maryland Public Service Commission oversees basic public utilities, including phone services. Under state regulation, Verizon needs state approval for rate increases or the addition of new services. But states like Maryland have no authority over cable and Internet or wireless phone providers, which are monitored by the federal government.

By rolling its phone services into packages that give consumers cable and Internet or by providing phone service through an Internet connection, Comcast and Vonage avoid state oversight.

This means, for example, Verizon can’t do one of those popular high-speed internet and phoneThese backwards rules hurt both the provider and the consumer. A Verizon Maryland spokeswoman commented:

“It’s time our state moves forward by bringing telecommunications regulation up to speed with the market,… [It’s] a market where most competitors face little to no regulation.”