According to an article from CNET News last month, Internet phone providers got a boost when federal regulators ruled that local telephone companies must connect Net-based calls over broadband lines owned by phone companies like Sprint Nextel and Verizon Communications.

The article explains that a 16-page order from the Federal Communications Commission overturned decisions by state regulators in South Carolina and Nebraska that had prevented Time Warner Cable from deploying its digital phone service. Time Warner Cable had petitioned the FCC regarding the issue about a year ago.

"Our decision will enhance consumers' choice for phone service by making clear that cable and other VoIP providers must be able to use local phone numbers and be allowed to put calls through to other phone networks," FCC Chairman Kevin Martin said.

VON Coalition, a VoIP industry group that supported Time Warner Cable's petition, was also quoted regarding FCC's decision, stating it was "broadly beneficial to the entire VoIP industry."

"The problems that Time Warner faced in South Carolina and Nebraska were not isolated," Jim Kohlenberger, the coalition's executive director, said in an e-mailed statement. "They threatened the competitive availability of VoIP services overall, and they effectively created 'digital divides' between those Americans who can enjoy the full potential of broadband and those who cannot."

For more information, read the full CNET article.