Competition and deregulation will be key drivers for the VoIP industry and the telecom industry as a whole. With so many competitors entering the VoIP fray, state governments are worried about potential tax revenue loss from VoIP services. As such some state officials and lawmakers are very pro-incumbent carriers which also happen to have very strong lobbyists working on their behalf. This has the potential to leave the smaller VoIP startups on the outside looking in. This could lead to anti-competitive measures against the VoIP players in the market.

Fortunately, many lawmakers and government officials are weighing free market capitalism against the needs for a tax revenue base, including California Public Utilities Commissioner California Public Utilities Commissioner Susan Kennedy who will be speaking at breakfast to conferees at Internet Telephony EXPO. She is a strong proponent of open policies and regulatory restraint. Check out Rich Tehrani's blog entry on her speaking session for more information.