VOIP is NOT a Phone Service

VOIP is not a phone service, this is according to a three judge panel that ruled just this past Wednesday that it is not a telephone service, but is instead a data service. This is a great victory for the internet providers out there.

By ruling that VOIP is actually a data service, the panel has saved the internet service from the state regulatory services. Instead, it will fall under the jurisdiction of the Federal Communications Commission (FCC).

The expansion of VOIP was being hurt by the differing regulations from state to state. It is an issue that has been wandering through the court system for nearly four years. Experts in the industry are hoping that with the ruling the full benefits of VOIP can finally be experienced. They are also hoping that income potential from the technology will take off.

The VOIP hearing was centered on Vonage (one of the leading providers). The company was supported by many other industry providers as well. They have all praised the decision saying that it would protect this new segment of telecommunications.

Even with the decision in their favor, many of the VOIP providers have been struggling to make a profit. Vonage just recently lost another important court case over intellectual property. These court cases and the lack of consumers’ willingness to pay market value for the technology are hindering the economic viability of the industry.