Court Upholds Ban on States Regulating VoIP

A federal appeals court ruled Wednesday the decision by the Federal Communications Commission to prohibit countries, including Minnesota, from regulating Internet-based phone service.

Three judge panel of the Eighth Circuit Court of Appeals agreed that the FCCs determination in 2004, companies such as Vonage, the holding company of Edison, New Jersey, a state services, so that they are not under state control.

Vonage What is the use of so-called Voice over Internet Protocol, or VoIP, which involves converting sound into the voice to data packets, and once again become harmless in the other end of the phone. Customers can make calls almost anywhere in the use of broadband Internet connections circumstances, usually for a flat monthly fee.

In 2003, the Minnesota Public Utilities Commission to register as a telephone company Vonage, the company will be its countrys freight tariffs and regulations. A federal judge prohibited Minnesota to do so, and a year later in the requirements of the FCCs Vonage ruling that the companys services are not subject to State.

Regulatory agencies in a number of countries, including Minnesota, called on the ruling party.

Decision by Fargo, Nd-based 8th Circuit Court Judge kermit bye, but the court agreed that the FCCs determination that the nature of VoIP phones for customers to the "home" phone almost anywhere, regardless of State Line.

A decision that is highly technical, "In these circumstances, we highly obedience informed decision, the agency responsible for making the findings of these facts," Goodbye, writing for the Court.

When the Federal Communications Commission issued a ruling party in 2004, officials with the agency said that they believe that simplifying regulation is key to the growth rate of GDP of infant industries.

Vonage Maikeshinaide CEO of the company, said the decision is good news, the companys 2.2 million subscribers. "It makes Vonage, in order to continue growing our business outside the Internet before the outdated management structure," he said in a statement.

Burl Hall, the Executive Secretary for the Minnesota Public Utilities Commission officials said, but there is still some research, the full ruling. However, he said, members believe that Vonage should be seen as a telephone company.

"Their own project to provide telephone service to the public, as well as all of its marketing seems to indicate that the services they provide," Haar said.

He said that the Commissions officials will need to study the ruling further before deciding whether to appeal it to the full 8th Circuit or the United States Supreme Court.