TELECOM Digest OnLine - Sorted: FCC Declares Vonage(R) VoIP Service Is Interstate, Preempts

FCC Declares Vonage(R) VoIP Service Is Interstate, Preempts

Lisa Minter (
Tue, 09 Nov 2004 22:35:13 -0500

FCC Declares Vonage(R) VoIP Service Is Interstate, Preempts States From Regulating VoIP

Vonage CEO Jeffrey A. Citron Says Increased Clarity in the Broadband
Telephone Marketplace Means Subscribers Will Enjoy More Innovation,
Greater Savings

WASHINGTON, Nov. 9 /PRNewswire/ -- Today the Federal Communications
Commission (FCC) found that Vonage's Voice over Internet Protocol
(VoIP) phone service is "interstate" in nature, meaning that
individual states cannot regulate Vonage as it would a traditional
telephone company, nor regulate the rates, terms and conditions of
Vonage's service.

Vonage CEO Jeffrey A. Citron responded to the news. "This
forward-thinking decision from the FCC assures that competition from
VoIP is here to stay. Now we can focus our resources exclusively on
building an even better service- rolling out E-911 for all our
subscribers, innovating new features and new devices for VoIP, and
expanding aggressively around the globe. Because the FCC has
acknowledged the reality of the Internet-which knows no state
boundaries and no borders-more people will enjoy the benefits of
Internet phone service."

"Clarity for the VoIP industry benefits not only the U.S. economy, but
will also drive broadband penetration. The value proposition is
clear-our customers pay less for the combination of high-speed
Internet and Vonage phone service than they do for traditional phone
service plus clunky dial-up Internet. It's an upgrade that saves
consumers money, simplifies their lives and gives them features they
can't get from traditional phone service. The FCC has ensured that
more consumers will enjoy the benefits of this upgrade by providing
clarity in the marketplace," added Citron.

The vote was 3 in favor, with 2 concurring votes, leading to a
unanimous declaration that that Vonage's form of IP-to-PSTN
communications is an interstate service, asserting their sole
jurisdiction over its Internet-based service. The ruling is the third
in a series of IP-enabled services petitions, which establish the role
of the FCC in the regulation of the changing telecommunications
landscape. The order is expected to be issued in two to three
weeks. Please visit for more information about this
landmark ruling.

About Vonage(R)

Vonage is redefining communications by offering consumers and small
businesses an affordable alternative to traditional telephone
service. The fastest growing telephony company in North America,
Vonage is sold directly through and retail
partners such as, RadioShack, Best Buy, Circuit City,
Staples, Fry's Electronics and Office Depot. With more than 300,000
lines in service, over 5 million calls per week are made using Vonage,
the easy-to-use, feature-rich, flat rate phone service.

Vonage is headquartered in Edison, New Jersey. For more information
about Vonage's products and services, please visit or call 1-VONAGE-HELP.

Web Site:

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