A federal appeals court on Wednesday is scheduled to hear oral arguments on an appeal by the Minnesota Public Utilities commission of an order by a federal judge last year that struck down a state’s right to regulate phone service offered over the Internet.
The case before the U.S Court of Appeals for the 8th Circuit pits Vonage Holdings Corp., the poster child for Internet phone service, against the Minnesota PUC. Last year the Minnesota PUC released an order requiring Vonage Inc. to comply with the state’s rules for traditional phone companies. A federal judge overturned the regulators’ order, and the PUC appealed the court decision.
The PUC’s appeal was filed long before the FCC decision, announced last week, to declare that the federal government has the pre-emptive right to regulate VoIP services, such as Vonage.
In light of that FCC decision, which it obtained a copy of only today, the Minnesota PUC asked for a delay in beginning oral arguments in the case. “We are trying to assess the FCC order and to interpret what that means,” says Burl Haar, executive secretary, Minnesota PUC and a frequent spokesperson for the agency. However, the appeals panel turned down that request and the case still is scheduled to proceed on Wednesday
It is possible that the FCC decision will make it more difficult for the Minnesota PUC to make its case, and it is even possible that the state would decide not to proceed with the appeal. On the other hand, if the state does proceed, the court could be put in a position of deciding whether or not the FCC order has validity.
