] Handing a setback to emerging Internet phone services,
] the New York State Public Service Commission on Wednesday
] ruled that Vonage Holdings is a telephone company and
] thus subject to state regulation.
]
] In a statement announcing its decision, the agency sought
] to soften the blow, saying that it nevertheless hoped to
] apply "only minimal regulations to ensure that it does
] not interfere with the rapid, widespread deployment of
] new technologies."

[ Tough break for Vonage. Is QoS gonna be the first reg they hand down? -k]

New York classifies Vonage as phone company | CNET News.com