VOIP from the Bell companies?

BellSouth is reselling Vonage’s VOIP service for its DSL customers. This is fascinating. I suspect it was a business deal on the data side that the corporate mothership isn’t fully aware of. It means that, in states where BellSouth has authorization to offer long-distance, you can buy BellSouth service for one price, or BellSouth over Vonage over BellSouth DSL service for a different price. Where BellSouth doesn’t have long-distance authorization, I wonder if they are in violation by reselling the Vonage voice offering?

Where all this goes is that it’s time for the FCC to take on the regulatory issues surrounding Internet telephony.

UPDATE — BellSouth is shutting down the service. They must have realized what they were getting themselves into.