The House Energy and Commerce Commission today released a staff working version of legislation to reform U.S. telecom laws that, like this summer’s Ensign bill, leans heavily toward deregulation.

The measure, considered a compromise by the two committee leaders, Chairman Joe Barton (R-Texas) and Rep. John Dingell (Mich.), the ranking Democrat, was greeted with cautious optimism within the telecom ranks Thursday.

“We welcome this Committee staff draft and applaud the initiative and leadership behind it,” said Walter B. McCormick Jr., President and CEO of USTelecom, in a prepared statement. “While we have not yet reviewed the draft in detail, we are encouraged by its overall direction, particularly in promoting investment and competition in advanced services. Of course, there are areas we would like to see addressed in a more comprehensive manner, such as the sustainability of universal service. We also believe that any legislation should spur immediate competition in the video market and if regulations are deemed outdated, they should be lifted for all competing services, not solely new ones.”

BellSouth’s Herschel Abbot, vice president of government affairs, stressed the significance of forward motion on telecom reform, which some are concerned can’t be concluded this year.

"We welcome the release of this staff draft,” he said in a statement. “We understand that a lot of work by the staff has resulted in a fairly broad consensus among the Committee leadership. What is important today is that we have momentum, this is a very positive step toward having forward-looking, consumer-friendly, consumer-oriented legislation passed this year.”

The bill establishes broadband Internet regulation as a federal duty, pre-empting the states, and also protects Voice over IP from state or local regulation, calling it an interstate service. The measure also classifies broadband video services as a matter of federal regulation only.