FCC fine telco $15,000 for blocking Skype

North Carolina based telephone company Madison River Communications have been fined $15,000 for blocking customers who used the Internet for free phone calls.

With a technology known as Voice over Internet Protocol (VoIP), anyone owing a computer equipped with a sound card and a broadband Internet connection can "dial" another similar computer user connected to the Internet and conduct free phone calls, anywhere in the world.

Skype Technologies are just one firm offering free calls using this very method.

The Federal Communications Commission (FCC) said Madison River Communications actively blocked users Internet connections from taking advantage of the VoIP technology.

Michael Powell, chairman of the FCC said,

"We saw a problem, and we acted swiftly to ensure that Internet voice service remains a viable option for consumers. The industry must adhere to certain consumer protection norms if the Internet is to remain an open platform for innovation."

Along with the $15,000 settlement, Madison River Communications also agreed not block VoIP technologies in the future.

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