Vonage wins ruling on Internet call regulation

Vonage Holdings Corp., an unprofitable Internet phone company, won a court ruling that bars states from regulating its service, thwarting a challenge from telecommunications regulators in Minnesota.

Vonage’s service should be regulated by the Federal Communications Commission, an appeals court in St. Louis said. The move by the three-judge panel backs a 2004 order from the FCC.

This is at least the third court victory for Holmdel, N.J.-based Vonage over Minnesota, which ruled in 2003 that state requirements for land-line phone companies also should apply to Internet phone providers.