8th Circuit: Minnesota Can't Regulate Internet Calls as Phone Service

A Minnesota agency may not regulate calls through cyberspace as it does calls through traditional phone lines, the 8th U.S. Circuit Court of Appeals has ruled. The decision upholds a lower court ruling and is a win for fledgling companies like Vonage Holdings Corp., which provides Voice over Internet Protocol. Last month, the FCC issued its own rules, saying Internet phone services should not be governed by the same state regulations as traditional phone companies.

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