A state regulatory agency in New York ruled Wednesday that Vonage Holdings is a telco provider, a significant classification that has important ramifications for the ongoing debate over government regulation of the emerging technology.
In its ruling, the New York State Public Service Commission determined the Internet telephony provider offers competitive telephone services via Voice over IP technology and is therefore a telephone corporation as defined by New York state law.
Specifically, the commission noted a core public interest in ensuring public safety and network reliability, but it also suggested only minimal regulation would be advised because of the rapid growth of the new field.
"Telecommunications services are a critical component of this state's economy, and our decision today seeks to maximize the benefits of the emerging VoIP technology, while minimizing the risks to the public interest, including safety and economic interests," Commission Chairman William Flynn said in a statement.
The public agency's action was not seen as a welcome development by one leading VoIP proponent, Jeff Pulver, whose company - Free World Dialup - has also been at the center of the debate over regulating VoIP.
