Handing a setback to emerging Internet phone services, the New York State Public Service Commission on Wednesday ruled that Vonage Holdings is a telephone company and is thus subject to state regulation.
In a
statement announcing its decision, the agency sought to soften the blow, saying it nevertheless hopes to apply "only minimal regulations to ensure that it does not interfere with the rapid, widespread deployment of new technologies."
New York is the latest state to weigh in on the regulation of voice over Internet Protocol (VoIP) services, a hot-button policy issue that has some local officials worried about potential tax losses, as the technology grows in popularity.
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In October 2003, a federal judge rejected an attempt by Minnesota's Public Utilities Commission to regulate Vonage, saying its services fell outside the traditional definition of a phone company.
Other states, including California and Florida, are considering the issue, but many have decided to wait for a clearer signal from federal regulators over the status of VoIP. The Federal Communications Commission earlier this year issued a preliminary report on Net phone calling but left the details for further study.
Industry advocate Jeff Pulver, founder of VoIP service Free World Dialup, criticized New York's decision Wednesday in a posting on his Web site.
"I am quite disappointed to see that New York State decided to apply legacy telephone regulation to Internet-based communications, while the FCC is in the process of figuring out the right regulatory treatment for VoIP," he wrote.
"Between this decision in New York and a pending decision in California, these new developments may lead to the introduction of new regulatory barriers that in fact could slow the adoption of IP communication services and delay the extraordinary benefits available from such services," he wrote.
Although the New York decision is unwelcome for the industry, the New York State Public Service Commission expressed optimism that it could balance its interpretation of state law with the policy goal of encouraging the growth of VoIP services.
"While today's decision means that Vonage will be subject to some form of regulation, we are limiting the effect of our decision to allow Vonage an opportunity to address the framework of that regulation," Commission Chairman William Flynn said in a statement.
I currently have switched my phone service to Vonage and am completely dissatisfied with the service. It took months to completely transfer four business lines, and the lines were all transferred at different times. Once my main line was transferred to Vonage, it took a week and a half of calling to get them to properly activate the router so that my phones would work. I called their office on many occasions on my cell phone to complain about these problems, and the transfer feature of the service does not work and the only option is to have calls go to voice mail. Currently I have been advised that the router has been deactivated yet again and I am without phone service for the second time in two months waiting for the router to be properly activated (if that is the problem).
I don't think any company especially one that doesn't have a physical presence needs to be unregulated.
I am trying to transfer my service back to BellSouth and I have been waiting three weeks for this and have been told that it could take another 15 days. So unless Vonage can resolve the problem with my routers so that I can at least one working phone, I will not have phone service to my business until Bellsouth gets the lines back or I get new phone numbers. This would be tough for me as an attorney considering that I have commercials and two yellow page ads in different books using my current number.
Vonage will not give me a name or address of anyone that I can complain to. Customers are expected to work with technicians until the problem is resolved, no matter how many days or weeks that may take.
I currently have switched my phone service to Vonage and am completely dissatisfied with the service. It took months to completely transfer four business lines, and the lines were all transferred at different times. Once my main line was transferred to Vonage, it took a week and a half of calling to get them to properly activate the router so that my phones would work. I called their office on many occasions on my cell phone to complain about these problems, and the transfer feature of the service does not work and the only option is to have calls go to voice mail. Currently I have been advised that the router has been deactivated yet again and I am without phone service for the second time in two months waiting for the router to be properly activated (if that is the problem).
I don't think any company especially one that doesn't have a physical presence needs to be unregulated.
I am trying to transfer my service back to BellSouth and I have been waiting three weeks for this and have been told that it could take another 15 days. So unless Vonage can resolve the problem with my routers so that I can at least one working phone, I will not have phone service to my business until Bellsouth gets the lines back or I get new phone numbers. This would be tough for me as an attorney considering that I have commercials and two yellow page ads in different books using my current number.
Vonage will not give me a name or address of anyone that I can complain to. Customers are expected to work with technicians until the problem is resolved, no matter how many days or weeks that may take.
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I don't think any company especially one that doesn't have a physical presence needs to be unregulated.
I am trying to transfer my service back to BellSouth and I have been waiting three weeks for this and have been told that it could take another 15 days. So unless Vonage can resolve the problem with my routers so that I can at least one working phone, I will not have phone service to my business until Bellsouth gets the lines back or I get new phone numbers. This would be tough for me as an attorney considering that I have commercials and two yellow page ads in different books using my current number.
Vonage will not give me a name or address of anyone that I can complain to. Customers are expected to work with technicians until the problem is resolved, no matter how many days or weeks that may take.
I don't think any company especially one that doesn't have a physical presence needs to be unregulated.
I am trying to transfer my service back to BellSouth and I have been waiting three weeks for this and have been told that it could take another 15 days. So unless Vonage can resolve the problem with my routers so that I can at least one working phone, I will not have phone service to my business until Bellsouth gets the lines back or I get new phone numbers. This would be tough for me as an attorney considering that I have commercials and two yellow page ads in different books using my current number.
Vonage will not give me a name or address of anyone that I can complain to. Customers are expected to work with technicians until the problem is resolved, no matter how many days or weeks that may take.