Internet phone business reveals new challenges

Using the Internet to make telephone calls is great for consumers – but governments fear (and are) losing tax revenue. Keep your eye on this emerging baby.
The Times Union is reporting that if you sign up for Internet-based phone service and you can get heaps of long distance and local calls, plus extras such as voice mail, caller ID and your choice of dozens of area codes — all for less than the regular telephone company would charge.
But those newfangled telecom companies aren’t regulated or taxed in New York state. Customers don’t pay the service charge that helps maintain 911 service. In other words, the technology has changed, but the regulations haven’t. (full story)