July 1, 2004

Vonage beats back New York ruling | CNET News.com

This judge's decision is just one more nail in the coffin of State regulation of future telephone service via VoIP. While state regulators, whether utility or consumer protection, will have a role in consumer protection, perhaps service quality (but that's questionable), the days are numbered for the style of regulation practiced concerning the 'Baby Bells.' Price regulation at the state level will and should disappear. VoIP is clearly an interstatee service and regulation of price/cost/terms and conditions should diminish as VoIP technology dominates voice telephony.

To the extent that taxes on traditional telephony are substantive and important to state or local budgets, lawmakers should sooner rather than later wean themselves form this source. The internet should remain tax-free and any services provided via Internet protocols should not be taxed.

Congress seems on the correct path in this matter. Don't know where Kerry stands on this, but Bush supports no Internet taxes. Hope Kerry has the same stance.

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