One of the most important Internet telephony rulings of the year is expected from federal regulators on Tuesday.

In a move that has been closely watched by the voice over Internet Protocol, or VoIP, industry, Level 3 Communications has argued that it should be able to pay lower fees to local telephone companies to begin and end voice calls on their networks. If Level 3 loses, the prices for some VoIP calls could jump.

The Federal Communications Commission has been considering Level 3's request since December 2003. A decision was due in October, but the FCC extended its own deadline to March 22.

Former FCC Chairman Michael Powell indicated last year that he might have granted Level 3's request. In November, Powell said: "I am committed to ensuring that this commission avoids any action that might slow the IP-services revolution." Kevin Martin, the new FCC chairman, has not been as explicit.