VoIP, Inc.: ``FCC Ruling Shields VoIP Services from State Regulation''

Business Wire, Nov 10, 2004

FORT LAUDERDALE, Fla. -- VoIP, Inc. (OTCBB:VOII) an emerging provider of Voice over IP based solutions, issued a statement today on the Federal Communication Commission's comments on VoIP services.

The FCC ruled on several key issues concerning the regulatory environment surrounding VoIP, most notably that VoIP calls were considered "Interstate" in nature. This recognition of the use of VoIP as an Internet-based information service is seen as a sign that the FCC is considering the implementation of voice services over the Internet as inherently different from that of the traditional phone network, while at the same time moving the authority for regulation more towards a federal jurisdiction instead of that of the individual states. VoIP Inc. issued the following comments about the ruling:

"The FCC made a historic decision today for the future of Internet-based telephony services, and for all future innovative and disruptive communications services as well. By declaring that VoIP services are Interstate by their nature, and asserting federal jurisdiction over how these services should or should not be regulated, the FCC has taken a decisive step towards ensuring that new IP-based applications and services will be available to consumers in a way that makes them effective and competitive."

While the exact text of the decision is still pending, the statements yesterday made by the FCC clearly indicate that the competitive nature of VoIP was to be protected and unburdened by individual state authority, as VoIP is seen as a service comparable in much of its nature to that of wireless telephony which is similarly unburdened. The decision from the FCC enables VoIP service providers to avoid negotiating rates, services and rules with individual state governments and continue to offer new, competitively-priced Internet phone services to residential and business broadband subscribers.

Shares of 8x8 Inc (NASDAQ:EGHT) and Net2Phone (NASDAQ:NTOP) are running on news the FCC ruled that Vonage internet service is interstate

About VoIP, Inc. www.voipinc.com

VoIP, Inc. is an emerging global service provider of Voice over IP-based solutions, offering residential and business customers more user friendly and affordable ways to communicate. VoIP, Inc. also manufactures products and provides services to Internet Service Providers, Telecommunication Service Providers and Cable Operators in countries around the world. VoIP, Inc, through its subsidiaries, provides a comprehensive portfolio of IP multimedia-based solutions ranging from subscriber based voice services, to SIP based infrastructure design and deployment, to broadband customer premise equipment design and implementation services, as well as engineering design, manufacturing and distribution of wireless broadband technology. VoIP, Inc. has applied for a patent for its state of the art VoIP Multimedia Terminal Adaptor which today supports the FCC Commission's desire for VoIP providers to deliver Emergency 911 Calling capabilities to the marketplace.

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