Volume II

Issue : 3: February 5, 2004

• U.S. National Cable Association Proposes Limited VoIP Regulation
• The VoIP Regulatory Debate Intensifies in Canada - TRAI Amends its Quality of Service Regulations for VoIP Long Distance Service in India
• Minnesota Judge Refuses to Reserve VoIP Decision - Panama Introduces Tax on VoIP
• Lawsuit Launched Against Credit Card Companies over Piracy of Internet Pornography
• U.S. Telemarketers Required to Identify Themselves to Consumers by Caller ID
• Federal, British Columbia and Alberta Privacy Commissioners Agree to Cooperate
• FTC Releases Report on 2003 Consumer Fraud and Identity Theft Complaints
• B.C. Court Rules Forward Looking Infra-Red Technology Does Not Constitute a Search
• RIAA Targets Individuals on Anonymous Basis - Australia Music Industry Sues ISP
• France Gets Ready to Take Action against Internet Piracy
• Canadian Company to Offer High-speed Internet Access Via Hydro Lines
• U.S. Court of Appeals Finds Formation of On-line Contract Does Not Require "I Agree"
• Ontario Court Asserts Jurisdiction Over Washington Post Based on Online Publication

Home > Volume II > Issue 3: February 5, 2004 > Minnesota Judge Refuses to Reserve VoIP Decision - Panama Introduces Tax on VoIP

Minnesota Judge Refuses to Reserve VoIP Decision - Panama Introduces Tax on VoIP

In October 2003, Minnesota telecom regulatory bodies asked a U.S. District Judge, Michael Davis, to alter his decision to permanently bar Minnesota from applying traditional telephone rules to Vonage, a voice over Internet protocol (VoIP) provider. The court refused. Recently, Davis J. affirmed his refusal, which means that companies such as Vonage and other VoIP providers can offer their services in the State of Minnesota without first obtaining a telephone operator's license, or paying for "911 emergency" service fees. The Court's decision was rendered after Vonage sued Minnesota's Public Utilities Commission for claiming authority over VoIP. Since Minnesota's order, Wisconsin and California have also asserted authority over VoIP providers. Other states are reviewing their policies.

On a related note, in an effort to regulate the VoIP industry and to protect tax revenue generated from the use of telephone services, the government of Panama has introduced a twelve percent tax on all international calls, including those that use VoIP technology. Panama alone estimates that it has lost over $12 million (USD) in tax revenue from people using the Internet to make international calls. While some VoIP service providers are opposed to any governmental effort to regulate their industry through taxation, others do not object as long as the regulations are uniformly applied to both the traditional phone networks, as well as broadband.

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