The state’s public utility regulators will meet in a much-anticipated showdown with Internet phone providers, reports CNET News.com.

This is a big event leading up to the December 1. 2004 forum being held by the FCC. Companies like Net2Phone, Vonage, and 8×8 are expected to make strong arguments against VoIP regulations as the hearings kick off sometime today in San Francisco.

From the looks of it, California, which is in a financial hole seems to be predisposed to regulation. And if decides to do so, expect a big win for the big players, and a nice little jump in their stock prices as well.

Why is this important?  This is a key meeting going into the FCC’s December 1 forum on VoIP.  Since MN’s recent decision to treat VoIP as a data service (not regulate), this is the next precedent that could be set going into the powerful meeting with the FCC. Since VoIP is growing at a lightning pace, we are seeing the telecom landscape change before our very eyes.