Vonage was awarded a preliminary injunction by a U.S. District Court barring the New York Public Service Commission (PSC) from regulating Vonage as a telecommunications carrier. The judge will consider the merits of a permanent injunction in January 2005.
"We are satisfied with the court's decision and believe this is a positive step forward for New Yorkers and the industry," said Jeffrey A. Citron, chairman and CEO of Vonage Holdings Corporation. "Vonage remains eager and committed to working with the states, Congress and the FCC to create a national framework for this emerging industry."
- On 20-May-2004, 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.
- 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.
