In an order issued last Friday, a unanimous three-judge panel of the Eighth Circuit upheld a 2008 preliminary injunction by a Nebraska federal district court that stopped the Nebraska Public Service Commission (NPSC) from asserting state jurisdiction over a Voice over Internet Protocol (VoIP) provider, Vonage, to force the company to pay into the Nebraska Universal Service Fund (USF). Vonage Holdings Corp. v. Nebraska PSC, No. 08-1764 (May 1, 2009).

This decision technically is only binding on other states in the Eighth Circuit, but it will be cited as precedent in challenges to other states with USF surcharges or states that are considering them.

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