October 17, 2003

Fed Court Bars PUC Regulation of VOIP Provider

CNET news reports that U.S. District Judge Michael J. Davis has issued a 22-page opinion (full text courtesy of Netsuds.com) in the Vonage case, supporting his permanent injunction against the Minnesota PUC regulating the Voice Over Internet Protocol (VOIP) service. See News: Judge gives details on landmark VoIP ruling. Classifying VOIP providers as "information service providers" rather than "telecommunications providers," the Judge is said to have barred state regulation that might interfere with federal policy to encourage future development. California and other states are also attempting to regulate VOIP providers, and will be watching the decision closely.

The ruling is said to conflict with a Ninth Circuit decision on cable broadband providers, entered two weeks ago in Brand X Internet Ser. v. FCC, which the FCC Chairman Michael Powell says he will appeal.
(Read more ... )

Meanwhile, upstart Skype (from the people who brought you Kazaa) is offering a free "peer-to-peer" version of VOIP to compete with Vonage and other for-pay service providers. See Thompson, "To Whom May I Direct Your Free Call?" (NYT, October 12, 2003)

Minnesota PUC's Briefing Papers on the Vonage Case (August 2003)

Netsuds.com is hosting a Telecom Policy Summit & Reception in Minnesota on October 22 and provides links to original documents of that and other states.

Open Thread: What do you think?

  • Should Broadband and VOIP providers be subject to state PUC regulation?
  • Which are on the right track, the District Judge and FCC or the Ninth Circuit? Why?
  • What impact will Skype have on the controversy, if any?
    Comments or TrackBack, please.

    DougSimpson.com/blog

    Posted by dougsimpson at October 17, 2003 09:52 AM | TrackBack
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