TELECOM Digest OnLine - Sorted: FCC Rules in Favor of Net Phone Industry

FCC Rules in Favor of Net Phone Industry

Monty Solomon (
Wed, 10 Nov 2004 01:35:50 -0500

By JENNIFER C. KERR Associated Press Writer

WASHINGTON (AP) -- Federal regulators gave a boost Tuesday to the
fledgling Internet phone industry, removing a regulatory hurdle that
threatened to drive up the cost of making calls through cyberspace.

The Federal Communications Commission voted 5-0 for a petition by
Vonage Holdings Corp. of Edison, N.J., which had asked the agency to
declare the company's product an interstate service, giving the FCC
regulatory control.

The move exempts Vonage and similar providers of Voice over Internet
Protocol, or VoIP, from some key state-by-state regulation that the
companies say would add cost.


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