The case currently before the U.S. Court of Appeals for the Federal Circuit is a litmus test that may well determine the future of the telecom industry. If Verizon's patent claims against Vonage hold up in the appeals court, the fate of many smaller VOIP companies, such as SunRocket and Packet8, could immediately be put in jeopardy, as the same patents could also prevent them from connecting their internet phone services to the public phone network.

The short-term effect could give Verizon a de facto VOIP monopoly. Long-term, the case could affect more purely internet-based communication services, such as those offered by peer-to-peer telephony leader Skype.