FCC Declares VOIP Interstate

Ending one of the worst-kept secrets in Washington, the FCC today declared most voice over IP services as inherently interstate, precluding states from regulating them like traditional telephone companies.

This will remove some of the roadblocks and uncertainty for VOIP providers, especially newer players like Vonage. But it’s important to understand that the FCC hasn’t actually resolved most of the hard regulatory issues VOIP raises. It has just decided that it, and not the state regulators, will be the one to make those decisions.