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U.S. District Court Limits State Attempts to Govern VoIP

The U.S. District Court for the district of New York recently ruled that state utility commissions will be able to work with Vonage, a VoIP provider, but will not be able to regulate or tax it. In his order, Judge Eaton limited the ability of state utility commissions to regulate VoIP companies, reserving greater control to the Federal Communications Commission, which is currently drafting VoIP regulations. A federal judge for the district of Minnesota issued a similar ruling in October, now under appeal, which dismissed state attempts to regulate the VoIP industry.

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