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Baby Bell or giant Behemoth? Telecom debate begins.(PARTY LINE)

Regulatory roulette is now underway, with federal lawmakers holding initial committee hearings about telecom reform, a new FCC commissioner in place and the "light regulatory touch" embraced by Michael Powell, the former chairman, likely to dominate the landscape.

Rewriting the 1996 Telecom Act is likely to be a long and arduous process, but already the political fallout is developing.

First, the divisive issue of whether the states or the federal government should regulate VoIP (if it is to be regulated at all, that is) has now been decided in favor of the feds. California's Public Utility Commission, which last year announced its own VoIP probe as a prelude to a ...

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