Subject: [NEXTEL-1] Federal Magistrate Blocks FCC Order-

From: NEXTEL-1
Date: Fri, 02 Jul 2004 19:22:46 -0400

July 1, 2004
Vonage Records Regulatory Victory
By Colin C. Haley

A federal magistrate is poised to issue a preliminary injunction
blocking New York officials from regulating broadband telephony upstart
Vonage.

Magistrate Judge Douglas F. Eaton of the U.S. District Court announced
late Wednesday his intent to rule against the New York Public Service
Commission (PSC), and he is expected to release a written order shortly.
He may also consider making the injunction permanent. A hearing to
consider that move would likely come in January, Vonage said.

"The six-month window gives the [Federal Communications Commission]
breathing room to take leadership of this issue by creating a national
framework for VoIP policy," Brooke Schulz, a Vonage spokeswoman told
internetnews.com.
Meanwhile, New York PSC Chairman William M. Flynn issued a statement
saying that the state "will continue to make its case in the Federal
Communications Commission's ongoing rulemaking on IP-enabled services."

This is the second such victory for Vonage. In October 2003, another
federal judge ruled that Minnesota regulators could not require Vonage
to register as a telephone provider to provide its IP telephony services
to customers in the state.

Vonage and other VoIP providers argue that they operate as "information
services providers," not telecommunications services providers, and are
therefore outside the jurisdiction of the state officials who oversee
entities.

States don't buy that distinction. They also worry about the prospect of
losing revenue for worthy programs. Telephone tariffs comprise a major
part of state revenues, and they help fund Internet connections to
schools and libraries, as well as support local 9-1-1 services.

In addition to the Minnesota decision, Vonage believes the FCC's
hands-off posture on the emerging technology helped its case.

The FCC, led by Chairman Michael Powell, has indicated it wants a light
regulatory touch, so the growth of the technology isn't suppressed.

At the same time, there are a number of issues that must be hammered
out,
whether by government mandate or voluntary compliance, including 9-1-1
service
and the ability of law enforcement agencies to be able to tap into VoIP
calls. The
FCC is working with both sides to craft guidelines

http://www.internetnews.com/infra/article.php/3376391

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