A bill that would further deregulate telephone service in Iowa stalled at the statehouse this past week. More than two dozen lobbyists crowded into a committee room to argue about the bill, which would affect phone companies that use the Internet as the link between a call from one landline to the landline the caller’s trying to reach. Some giant phone companies say this new internet-based phone service will be slowed if they can’t get out from under the oversight of the Iowa Utilities Board. Michael Sadler is an executive with CenturyLink.

“My company is going to be investing billions of dollars in IP technology moving forward,” Sadler told legislators. CenturyLink, Verizon, and AT&T all want the service to be regulated by the Federal Communications Commission — like cellphones are. Critics say that would mean unhappy customers could no longer go to the Iowa Utilities Board for relief. Kerri Johannsen, a spokesman for the board, says recent complaints include dropped calls.

“We’re dealing with issues in consumer protection, especially in rural call completion,” she says. Rural phone providers oppose the bill. So do telecommunications giants Sprint and U.S. Cellular who worry how it will affect their connections with the other providers. Lawmakers say the issue needs more study and they’ve tabled the proposal.

(Radio Iowa)