[PLUG-WEB] [Fwd: (uswisp) Minnesota PUC says phone rules apply to VOIP]

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From: Marianne Granoff <granoff@zianet.com>
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Subject: (uswisp) Minnesota PUC says phone rules apply to VOIP
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FYI.

Marianne


>http://news.com.com/2100-1037_3-5066652.html
>
>Minnesota: Phone rules apply to VoIP
>
>By Ben Charny
>Staff Writer, CNET News.com
>August 21, 2003, 10:52 AM PT
>
>Vonage said Thursday it intends to fight the first-ever decision by a
>U.S. state to regulate companies that provide Internet-based phone
>services.
>Minnesota's Public Utilities Commission unanimously decided two weeks
>ago that the New Jersey-based voice over IP (VoIP) provider is subject
>to the rules and regulations that cover traditional phone companies.
>
>The state has ordered Vonage to get the proper telephone company
>business licenses and to immediately pay fees to the state's Department
>of Administration to support 911 services, according to a representative
>for the Minnesota PUC.
>
>
>Bill Wilhelm, an attorney for Vonage, called the decision into question
>Thursday, pointing out that the company's calls travel over the Internet
>rather than over a traditional phone network.
>
>"We believe the Minnesota PUC is incorrect in its findings," he said.
>
>Vonage, which lays claim to 40,000 subscribers, is exploring all its
>options, he said--which include suing the Minnesota PUC in a state or
>federal court.
>
>Minnesota is the first U.S. state to attempt to regulate VoIP, according
>to Vonage. VoIP is a new breed of cheaper phone service that lets people
>place calls through the Internet, avoiding telephone companies' local
>and long-distance networks.
>
>The Minnesota PUC decision could have a widespread impact. While it only
>targets Vonage, it has set a precedent that regulators from all 50 U.S.
>states can use with regard to other VoIP providers. Michigan authorities
>have said they are considering a similar move, for instance.
>
>The ruling could also help sway the Federal Communications Commission
>(FCC), which is in the process of deciding whether it considers VoIP a
>traditional phone service.
>
>Such VoIP regulations are backed by major telephone companies Verizon
>Communications, BellSouth and Qwest Communications International. These
>carriers have come under competitive pressure from Vonage and major
>cable providers, which sell the lion's share of the 2.3 million VoIP
>calling plans in the United States.
>
>Vonage was given 30 days from the publication of the Minnesota PUC order
>to comply with the state's phone company regulations--which should come
>in five to 10 days.



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