Madison River Communications settles VoIP blocking case with FCC, pays $15,000 penalty

The Federal Communications Commission announces the first enforcement action against an Internet Service Provider for blocking a specific application, settling with Madison River Communications, a North Carolina-based telephone company operating as an ISP. Madison River had blocked Voice over Internet Protocol (VoIP) traffic on its network, preventing Vonage customers from using VoIP service. The company agrees to pay $15,000 and cease blocking VoIP applications for at least 30 months. FCC Chairman Michael Powell declares swift action to keep "Internet voice service a viable option for consumers," but the settlement includes no legal finding that Madison River violated law.