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Vonage Customer Reviews
Salt Lake City: impressions after several months
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Review: My First Day With Vonage, Excellent!
Review: My First Day With Vonage, Excellent!



Great Price, No Complaints
Great Price, No Complaints



You need some common sense.
You need some common sense.



Vonage Customer Review: One month with Vonage, and...
Vonage Customer Review: One month with Vonage, and...




Vonage Reviews

Costly Confusion


Vonage In Print News

November 28, 2003

By Steve Forbes

Two recent court decisions underscore the crying need for Washington to clean up the increasingly harmful mess in telecommunications. Regulations and laws on federal and state levels still pretend the Internet does not exist and thus try to preserve artificial barriers between computers, telephones, television, radio, cable and satellites. This time-warp mentality explains why, by the beginning of 2004, a South Korean household will be able to get a hundred times the broadband capacity for an online personal computer at about the same cost an American household pays.

The other day the Ninth Circuit Court of Appeals overturned a rare sensible ruling by the Federal Communications Commission. The FCC stated that cable companies shouldn't be required to let Internet service providers (ISPs), such as AOL, use the cable companies' technology and assets, usually at below-market costs. Cablers are spending prodigious amounts of money to provide broadband to homes and businesses. They should be free to negotiate their own deals with the ISPs. Otherwise, why risk all that money? But the appeals court must think the Berlin Wall is still up, treating cable companies as if they were your normal, big telephone outfits: Traditional telephone companies like Verizon are required to let competitors use their equipment and lines at unprofitable prices. If those judges had their heads on straight, they'd have thrown out not only the suit against the cablers but the telecom asset-sharing requirement as well. Unless the Supreme Court or Congress quickly steps in, our broadband access, compared with that of the South Koreans, will remain in the Stone Age.

A happier, more constructive ruling recently came out of Minnesota. A federal judge determined that the state cannot apply its telephone regulations to a startup company that permits consumers to place phone calls over the Internet. The startup, Vonage Holdings Corp., had argued that the state couldn't regulate it because of the Constitution's interstate commerce clause. Vonage is based in New Jersey and says it can't tell where its phone calls originate. The company also asserted that it converts voice traffic into data and that data traffic is beyond the purview of state and federal regulators.

Thanks to improved technology called Voice over Internet Protocol (VoIP), the quality of Internet phone calls is just as good as those carried over traditional landlines. Minnesota is fighting this ruling not only because it wants to keep its utility bureaucrats busy but also because companies like Vonage are not subject to many of the taxes traditional phone companies have to pay. Long-distance phone companies are upset because the upstarts don't have to pay the local telephone companies those so-called access fees for "handling" long-distance calls.

To "level the playing field," the FCC is hinting that it may want to impose regulations for Voice over Internet Protocol. God help us.

Until Congress cuts the telecom Gordian knot by removing all restrictions on entry into any currently regulated communications segment--TV, radio, local telephony, long-distance telephony, cable, satellite, whatever--by a date certain, investors had better hope the Vonage Holdings of the world can achieve Minnesota-like victories that will do the job instead.



 
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†AK and HI residents pay $29.95 shipping. ††Limited time offer. Valid for residents of the United States (&DC), 18 years or older, who open new accounts. Offer good while supplies last and only on new account activations. One kit per account/household. Offer cannot be combined with any other discounts, promotions or plans and is not applicable to past purchases. Good while supplies last. Allow up to 2 weeks for shipping. Other restrictions may apply.

1Unlimited calling and other services for all residential plans are based on normal residential, personal, non-commercial use. A combination of factors is used to determine abnormal use, including but not limited to: the number of unique numbers called, calls forwarded, minutes used and other factors. Subject to our Reasonable Use Policy and Terms of Service.

2Shipping and activation fees waived with 1-year agreement. An Early Termination Fee (with periodic pro-rated reductions) applies if service is terminated before the end of the first 12 months. Additional restrictions may apply. See Terms of Service for details.

HIGH SPEED INTERNET REQUIRED. †VALID FOR NEW LINES ONLY. RATES EXCLUDE INTERNET SERVICE, SURCHARGES, FEES AND TAXES. DEVICE MAY BE REFURBISHED. If you subscribe to plans with monthly minutes allotments, all call minutes placed from both from your home and registered ExtensionsTM phones will count toward your monthly minutes allotment. ExtensionsTM calls made from mobiles use airtime and may incur surcharges, depending on your mobile plan. Alarms, TTY and other systems may not be compatible. Vonage 911 service operates differently than traditional 911. See www.vonage.com/911 for details.

** Certain call types excluded.

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