New York's Public Service Commission ruled that Vonage is a telephone corporation as defined by state law and therefore must obtain a certificate of Public Convenience and Necessity.
The New York state commission said it does not seek to interfere with the rapid deployment of new technologies, but "must ensure that its core public interest concerns, including public safety and network reliability, are met." The state commission holds that Vonage must be subject to the same "limited" regulatory regime which is applied to competitive carriers in New York. Specifically, the commission said Vonage is not subject to economic or rate regulation, but must obtain authorization to provide telephone service and must file a schedule of its rates. http://www.dps.state.ny.us/
- In April 2004, Senator Sununu (R-NH) and Congressman Pickering (R-MS) proposed legislation that would definitely classify VoIP as an "information service," making it subject to federal jurisdiction and limiting potential state and local regulations.
- In September 2003, the Minnesota Public Utilities Commission issued an order for Vonage to comply with state laws governing telecommunications companies. A month later, a U.S. District Court ruled that Vonage is an "information service" and should not be regulated by state laws.
