Vonage, a provider of telephone service via the Internet, scored a significant victory this week when a federal court ruled the state of Minnesota cannot regulate it as a regular telephone company.

“Vonage is extremely pleased with the victory,” the company said in a statement provided to Local tech Wire. “The 8th Circuit federal appeals court has granted us a permanent injunction against the Minnesota Public Utilities Commission’s order regulating Vonage as it would a monopoly wireline phone company.

“The court recognized what the facts clearly show: it is bad law and bad policy to try and regulate an Internet application, which is clearly interstate in nature, on a state by state basis,” the statement added. “This ruling has provided additional clarity to the VoIP marketplace. As a result, more users will enjoy the innovative features, convenience, and cost savings that Internet phone service brings”

Vonage offers its Voice over Internet Protocol services in the Carolinas and Georgia as well as most US states.

For more about the ruling, see: www.vonage.com/corporate/press_news.php?PR=2004_12_29_6