Home / Insights and Advisories / 8th Circuit Overrules Minnesota VoIP Regulations Finding VoIP Is Information Service
The Eighth Circuit Court of Appeals (“8th Circuit”) recently issued a controversial decision concluding that Charter’s VoIP offering qualifies as an “information service” under the Telecommunications Act of 1996 (“the Act”), preempting state regulation of the service.
Charter had filed suit against the Minnesota Public Utilities Commission (“MPUC”) in federal district court in 2015 arguing that the MPUC had overstepped its authority by imposing regulatory requirements on VoIP providers. Whereas “telecommunications” offerings are subject to dual regulation, at the state and federal levels, state regulation of “information services” is preempted by federal law. The district court ruled in favor of Charter, finding that Charter’s service qualified as an “information service” and that MPUC regulation of such service was therefore preempted.
The 8th Circuit found that, because the FCC had expressly declined to classify VoIP as either an information service or a telecommunications service, the court may, in its discretion, interpret the Act to determine the appropriate regulatory classification for Charter’s VoIP offering. The court reasoned that, because Charter’s VoIP service involved a net protocol conversion (from TDM to IP) it necessarily used telecommunications to “transform” communications, and thus qualified as an “information service.” The 8th Circuit therefore affirmed the decision of the district court, finding state regulation of Charter’s VoIP service to be preempted and granting summary judgment in favor of Charter.
What does this ruling mean for VoIP providers?
This decision DOES mean that:
This ruling does NOT mean that:
The ruling COULD mean that:
If you have any questions or are interested in discussing potential opportunities created by this decision, please contact the attorney assigned to your account.
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