Vonage ordered to stop using Verizon technology

The New York Times says that the decision, which could force Vonage to close or to install new systems, follows a jury decision this month that awarded Verizon $58m and monthly royalties. But the judge agreed to postpone the effective date of the injunction for two weeks while he considers a request by Vonage for a stay pending what could be a lengthy appeal. Full report in The New York Times

In a separate case involving Vonage, an Appeals Court upheld a decision by the Federal Communications Commission (FCC) that barred states, including Minnesota, from regulating Internet-based phone services. According to a SFGate.com report, a three-judge panel of the 8th Circuit Court of Appeals agreed with the FCC\'s determination in 2004 that companies like Vonage Holdings provide an interstate service that puts them outside state control. Vonage uses VoIP, which involves converting the sound of a voice into packets of data and reassembling them into sound at the other end of the call. Customers can make the calls almost anywhere a broadband Internet connection is available, for usually a flat monthly charge. Full SFGate.com report