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SB 556

Public Utility Commission - As enacted, prohibits the commission from exercising regulatory authority over the entry of, rates for, or terms or conditions used by a broadband internet access service or interconnected VoIP service, or from treating a provider of such services as a carrier; makes other changes related to broadband services. - Amends TCA Title 7 and Title 65.

114th Regular Session (2025-2026)

Tennessee removes PUC regulatory authority over broadband and VoIP services, eliminating utility-style rate and service oversight in favor of competitive market regulation.

Comp. became Pub. Ch. 107
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Bill Summary · SB 556

Legislative bill overview

SB 556 removes the Tennessee Public Utility Commission's regulatory authority over broadband internet and VoIP (voice-over-internet-protocol) services, preventing the commission from regulating entry, rates, or service terms for these providers. The bill also clarifies that broadband and VoIP providers cannot be treated as regulated carriers under state law.

Why is this important

This change significantly alters the regulatory landscape for internet and phone services in Tennessee by shifting from utility-style regulation to a lighter-touch approach. It affects consumer protections, service standards, and rate-setting power—potentially lowering barriers to market entry for providers while removing traditional consumer safeguards that apply to regulated utilities.

Potential points of contention

  • Consumer protection gap: Removing PUC oversight eliminates standardized protections for service quality, dispute resolution, and rate transparency that regulated utilities must provide
  • Market competition assumptions: The bill assumes competitive market forces will protect consumers better than regulation; this may not hold in areas with limited provider options
  • Service obligation uncertainty: Without regulatory oversight, there is no mandated obligation to serve underserved or rural areas, potentially widening digital divides

Compiled from official sources — confirm details with the bill’s official record.

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