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States, Feds Headed For VoIP Clash

By pushing ahead with regulation now, states are facing long battles in court with VoIP (voice over Internet Protocol)service providers that believe existing laws don’t apply to them; and later with the Federal Communications Commission, which is expected in the next few months to leave states with very little, if any, regulatory power over Net-based phone calls.

Though small VoIP start-ups like Vonage are moving forward unfazed by the unsettled legal and regulatory picture, larger providers that want to play good corporate citizen might be forced to wait the months or years for the regulatory and legal picture to come into focus, industry sources say.

Read more at CNET News.com.