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Governments Prepare for Battle over VoIP Regulation.

When I signed up with Vonage to provide me with Internet telephony, I knew it wouldn’t be long before the government, both state and federal would start looking for ways to reduce the advantages, and cost savings of the technology, and sure enough, here come the states in their effort to flex muscle.

New York was the first to fire a shot across the bow of VoIP by declaring Vonage to be a telephone company, and ultimately making them subject to state regulation in New York.

Hopefully, the FCC will see its way clear to complete stifling of the efforts of individual states to adopt their own individual regulatory schemes.  Smaller VoIP providers simply don’t have the resources to comply with a state-by-state regulatory scheme, and that will guarantee that big players will be the only ones left in the market.

Just as an aside, Vonage has actually lowered its pricing from $34.95 per month, to $29.95 per month on its unlimited residential service, and this at a time when they are already the cheapest in the market.  When was the last time you can remember your local company going to regulators and asking for permission to lower it’s prices?

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