Neb. Commission Loses Appeal On Internet Call Fees

But VoIP providers say they should be classified as a data service provider and left alone, much as cable TV companies have been. Vonage offers Internet voice service by leasing transmission lines from telephone and cable companies.

Vonage had already benefited from a favorable ruling from the 8th U.S. Circuit Court of Appeals. In 2007, the appeals court upheld decisions barring regulatory agencies in a number of states, including Minnesota, from subjecting Vonage to state tariffs and rate regulations.

Vonage cited that ruling in its lawsuit against the Nebraska Public Service Commission and in fighting the commission's appeal.

Nebraska Public Service Commissioner Anne Boyle said Friday that she couldn't comment on the federal appeals court's ruling, but said the matter and possibility of appealing the case further likely will be discussed at a commission meeting on Tuesday.