Appeals Court Rules In Vonage’s Favor

A federal appeals court has upheld an FCC ruling that exempted VoIP providers such as Vonage Holdings Corp. from state-level oversight.

The FCC’s 2004 Vonage Order stated that services such as those from Vonage did not have to comply with regulations such as tariffs or E911, or get certification from states, because they are nomadic.

Nomadic services are considered interstate, which makes them subject to federal, not state, rules.

The court has yet to address whether cable VoIP should be overseen by states.

Analysts for investment bank Stifel Nicolaus said the ruling could be appealed to the full 8th Circuit Court or it could go directly to the U.S. Supreme Court.

States including Minnesota fought the FCC order.

FCC www.fcc.gov  

Vonage Holdings Corp. www.vonage.com

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