March 23, 2007
Recently the U.S. appeals court upheld a decision that exempted VoIP providers from many state regulations and oversight.
The U.S. Court of Appeals for the Eighth Circuit backed a 2004 decision by the FCC
that exempted VoIP telephone companies from rate regulation and from being required to seek certification before offering service.
The court upheld the FCC's order and said an issue raised by the state of New York on state regulation of fixed Internet phone services was "not ripe for review."
From a complexity standpoint having regulation of VoIP vary in every state would be challenging for providers. It just doesn’t make sense for every state to regulate IP communications.
VoIP has brought the cost of communications way down for consumers and in a world where virtually everything gets more expensive, this technology allows consumers and businesses to save money. Of course politicians in many states have their own interests at heart. They realize excessive regulation will increase consumer costs.
Of course they just don’t seem to care about what is best for consumers and this is a real shame.