California regulators have canceled a plan to charge a fee for text messaging on mobile phones.
The California Public Utilities Commission reversed course after a Federal Communications Commission ruling last week classified text messaging as an information service and not a telecommunications service.
The Federal Telecommunications Act limits state authority over information services.
Regulators announced Friday CPUC commissioner Carla Peterman withdrew the text proposal “in light of the FCC’s action” on Dec. 12.
California officials said the tax would help support programs that make phone service accessible to the poor.
The wireless industry and business groups were against the plan.