Many folks were anxiously waiting for the first FCC ruling after the appointment of Kevin Martin as the new Chairman, succeeding Michael Powell, to observe whether or not there would be a change in bias within the Commission. If the first ruling after Martin being named is at all a valid indicator, the FCC might become a bit more pro RBOC (albeit that UNE-P and the fiber ruling last October also benefited RBOCs).

Some VoIP providers will find it hard to digest the news that the FCC has again sided with the phone companies, issuing a controversial split-decision that they do not have to abide by state rules requiring them to sell stand-alone high speed Internet service (the final vote was 3x2 in favor of Bell South, which opposed regulation in Florida, Georgia, Kentucky and Louisiana that forbid its practice of linking DSL service to local phone service).

This will also prove to be a major challenge to “cord cutters” (i.e. a group of 20 million US residents who chose not to have local phone service and instead rely solely on cellular phones). These cord cutters that had naked DSL might now be forced to buy local phone service.

The interesting question is whether or not this will work in favor of the RBOCs, as the cord cutters were already unsatisfied with their local phone service, and certainly would not want to be in a position where they would be forced to buy that service just for the sake of having DSL. Therefore, they might consider cable (if available in their area) or maybe some broadband wireless option before, as a last option acquiring local phone service again.