The New York State Public Service Commission on Wednesday ruled that Vonage Holdings is a telephone company and thus subject to state regulation.
In a statement announcing its decision, the agency sought to soften the blow, saying that it nevertheless hoped to apply “only minimal regulations to ensure that it does not interfere with the rapid, widespread deployment of new technologies.”
New York is the latest state to weigh in on regulation of so-called voice over Internet Protocol (VoIP) services, a hot-button policy issue that has some local officials worried about potential tax losses as the technology grows in popularity.
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