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Vonage Holdings Corp. Reports Fourth Quarter and Full Year 2013 Results

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Salt Lake City: impressions after several months




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Senate To Begin Hearings On Internet Telephone


Vonage In Print News

The U.S. Senate On Wednesday Is Scheduled To Begin Hearings On Internet Telephone Services, In What Could Be The First Step Toward Banning State Governments From Regulating The Fast-Growing Technology

June 14, 2004

By Declan McCullagh

The U.S. Senate on Wednesday is scheduled to begin hearings on Internet telephone services, in what could be the first step toward banning state governments from regulating the fast-growing technology.

Under discussion during the hearing will be a proposal introduced in April that would flatly ban state regulators from monkeying around with voice-over-Internet Protocol (VoIP) services. The bill, called the Voip Regulatory Freedom Act, says regulatory authority is "reserved solely to the federal government."

Voip calls are placed over the Internet or a corporate IP network. They are generally less expensive because they avoid traditional telephone networks, which are heavily regulated and taxed.

The proposal is aimed at heading off state officials, who are eyeing Voip companies as potentially lucrative taxing opportunities. Last August, Minnesota required Vonage to apply for a telephone operator's license. Then in February, a California commission voted to assert jurisdiction over any Internet phone call that connects with traditional phone networks. New York took similar steps last month.

"The bill protects consumers by ensuring that this new service won't be taxed at the state level," Sen. John Sununu, R-N.H., said on the Senate floor when introducing the federal bill in April. "Everyone knows the more you tax something, the less you get. If you want to discourage investment, innovation and capital from moving into important new services like this, then raise the taxes and discourage that investment."

The following witnesses are scheduled to testify before the Senate Commerce Committee: Laura Parsky, deputy assistant attorney general at the Department of Justice; James Dempsey from the Center for Democracy and Technology; Jeff Pulver of Pulver.com; Tom Rutledge, chief operating officer of Cablevision Systems; and David Jones, director of emergency services for Spartanburg County, N.C.

The Justice Department and FBI are keenly interested in wiretapping Voip calls. The Sununu bill says that Voip companies that provide links to the existing telephone network--a category that would include Vonage, for instance--must provide some "access to necessary information to law enforcement agencies."

But the access requirement, a key concern of the FBI, would not apply to instant-messaging applications or peer-to-peer services like Skype. In March, the FBI submitted a proposal to the Federal Communications Commission urging regulators to grant police sweeping surveillance powers over Internet voice communications, a more expansive plan than the Sununu bill would authorize.



 
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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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