Court Declines To Review FCC VoIP Reg Preemption


The FCC won a court victory Wednesday

A federal court has upheld the FCC's authority to exempt Voice over Internet Protocol phone services like Vonage from rate regulations and prior certification of service.

The U.S. court of Appeals for the Eighth Circuit declined to review the FCC's order, which was challenged by state regulators whose regulations the FCC said it was empowered to preempt, saying the decision was not ripe for review, a point the FCC had argued.

The FCC ruled that it was virtually impossible to separate the interstate and intrastate components of Internet phone service to allow for local rate regulation, so that when a cable company, say, provides VoIP service, the FCC would preempt state regulation.