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Victory for Vonage, Federal Appeals Court Bars State Regulation for VOIP

Vonage, the leader in VOIP internet phone services, won another victory as a federal appeals court on Tuesday upheld a lower-court ruling that states may not regulate VOIP phone service as they do traditional wired line service.

The Tuesday order by the Eighth U.S. Circuit Court of Appeals in St. Louis upholds a lower-court ruling and is a victory for companies like Vonage Holdings Corp. of Edison, N.J., which provides voice over Internet protocol, or VOIP. - Associated Press

Detractors say states should have authority to tax and regulate VOIP to ensure the reliablity of 911 calls and service to rural areas. I'm sure higher taxes to pay for their porkbarrel projects has nothing to do with it.