[IP] FCC initiates VoIP tax for Universal Service Fund
do realize this tax is passed directly onto you and your bill. djf
Begin forwarded message:
From: Chris Savage <chris.savage@xxxxxxxxxx>
Date: June 22, 2006 10:03:03 PM EDT
To: CYBERIA-L@xxxxxxxxxxxxxxxx
Subject: Re: [CYBERIA] FCC initiates VoIP tax for Universal Service Fund
Reply-To: Law & Policy of Computer Communications <CYBERIA-
L@xxxxxxxxxxxxxxxx>
The FCC has a program called "universal service" pursuant to which
telephone service customers pay extra (it's effectively, but not
normally legally viewed as, a tax) to support providing serivce to
people with disabilities, poor people, and people who live in places
where it is very costly to provide phone service (think very rural
Alaska, e.g.).
The statute says that the assessment of these fees "shall" be on all
providers of interstate "telecommunications service" (a defined term
in the Act), and, at the FCC's discretion, "may" be also imposed on
providers of interstate "telecommunications" (a related, but
different, defined term in the Act).
The FCC today announced a decision (formal ruling including details
not out yet) that it was exercising its discretion to extend the
payment obligation to certain "telecommunications" providers,
specifically "interconnected VoIP" providers (like Vonage, or skype-
out, but not plain old skype).
They also had a rule that said cellphone providers could assume that
28.5% of their revenues were subject to the fee, and they upped that
to 37.1%.
The details can't really be sorted out until they release the actual
order, not just a press release.
Chris S.
________________________________
From: Law & Policy of Computer Communications on behalf of Stephen T.
Middlebrook
Sent: Thu 6/22/2006 4:45 PM
To: CYBERIA-L@xxxxxxxxxxxxxxxx
Subject: FCC initiates VoIP tax for Universal Service Fund
Talk about vague. Anybody know the real scoop? stm
http://seattletimes.nwsource.com/html/businesstechnology/
2003077279_fccvoipfees22.html
WASHINGTON ? Some cellphone and Internet phone users will see higher
bills
this year because of a move Wednesday by the Federal Communications
Commission (FCC) to ensure phone service for rural and disabled people.
The commission could not predict how many people would see an
increase or
how much more they would pay.
Specifically, the FCC took interim steps to avoid a financial crisis in
the Universal Service Fund that supports service for rural and disabled
people.
The commission required that providers of Internet phone service begin
contributing to the fund.
It also required that cellphone companies and other wireless providers
that opt to pay a flat contribution instead of one based on actual usage
assume that 37.1 percent, instead of 28.5 percent, of their revenue is
subject to the tax.
The actions were designed to make up temporarily for the loss of revenue
for the fund from providers of high-speed Internet service over phone
lines, or Digital Subscriber Lines (DSL).
DSL providers were exempted by the FCC in August, which FCC Commissioner
Michael Copps estimated cost the fund $350 million a year
**********************************************************************
For Listserv Instructions, see http://www.lawlists.net/cyberia
Off-Topic threads: http://www.lawlists.net/mailman/listinfo/cyberia-ot
Need more help? Send mail to: Cyberia-L-Request@xxxxxxxxxxxxxxxx
**********************************************************************
************************************************************************
This electronic mail transmission may contain confidential or privileged
information. If you believe that you have received the message in error,
please notify the sender by reply transmission and delete the message
without copying or disclosing it.
************************************************************************
**********************************************************************
For Listserv Instructions, see http://www.lawlists.net/cyberia
Off-Topic threads: http://www.lawlists.net/mailman/listinfo/cyberia-ot
Need more help? Send mail to: Cyberia-L-Request@xxxxxxxxxxxxxxxx
**********************************************************************
-------------------------------------
You are subscribed as roessler@xxxxxxxxxxxxxxxxxx
To manage your subscription, go to
http://v2.listbox.com/member/?listname=ip
Archives at: http://www.interesting-people.org/archives/interesting-people/