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I'll Take A '212' With That VoIP: Page 2 of 2

But the predicted demise of area codes can have its downside, too. Mitchell observes that a business operating from a foreign country can choose a U.S. area code for VoIP service and not be beholden to U.S. regulations. Congress may have added to the problem when it ruled in the Telecommunications Act of 1996 that telecommunications companies offering information-based communications--as VoIP firms do--aren't subject to traditional U.S. telecom regulations.

And then there is the issue of 911 emergency calls--what about a cell phone or VoIP caller who has a San Francisco area code, but calls "911" while in New York? Congress, the FCC, and telecommunications companies are all addressing the issue, but, to date, there is no universal solution. Vonage, for instance, has been testing 911 solutions in a handful of states in which it operates.

"One big horror story could influence this," said Mitchell, noting that bad publicity surrounding a 911 call that fails to generate emergency assistance to someone in need could influence future regulations.