Strike The Root: State tries to muscle VoIP provider

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August 26, 2003

State tries to muscle VoIP provider

Minnesota's Public Utilities Commission has decided to plunder and regulate VoIP provider, Vonage, by making them "get the proper telephone company business licenses and to immediately pay fees to the state's Department of Administration to support 911 services . . ."

"Minnesota is the first U.S. state to attempt to regulate VoIP, according to Vonage. VoIP is a new breed of cheaper phone service that lets people place calls through the Internet, avoiding telephone companies' local and long-distance networks."

Not surprisingly, VoIP regulations are backed by the major phone companies.

The New Jersey-based Vonage says it plans to fight the ruling. Reason Express suggests they ignore it. "Are state troopers going to break into Vonage customers' homes and confiscate their voice-over-Internet equipment? This is really the crux of the matter, as sooner or later the technology will evolve to let people bypass the old phone network completely -- and without the help of a third-party company. What would the world look like with peer-to-peer telephony?"

Posted by George F. Smith at August 26, 2003 08:53 AM

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