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Vonage The new charge for Vonage consumers "Federal Universal Service Fund tax"
The new charge for Vonage consumers "Federal Universal Service Fund tax"
Doesn't the FCC contradict itself?
Did Vonage lawyers try to beat this? Or did Vonage throw in the towel Because of big brother?
I want my phone to be affordable but how is that going to happen then the government keeps tacking on taxes?
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Vonage - FCC Serves Up Tax Break
FCC Serves Up Tax Break For Net Calling
November 9, 2004
By Scott Moritz
Federal regulators handed the Internet calling business a victory on the tax front Tuesday.
The Federal Communications Commission ruled that Net calling isn't the same as local phone service and therefore not subject to state jurisdiction. The decision means that services offered by companies such as closely held Vonage - a well-chronicled leader in selling voice-over-Internet-protocol calling - shouldn't be subject to conventional state telecom regulations.
The decision not only frees Vonage from state-by-state oversight, but also allows the company to avoid collecting various fees and taxes typically added to conventional phone bills.
Though the decision was anticipated, industry observers say it helps clarify the rules.
"We believe that this is positive, because it is clearly in everyone's best interest to have a nationwide policy on Voip, rather than 50 separate rule-making bodies issuing disparate orders," CIBC World Markets analyst Tim Horan wrote in a note Tuesday.
VoIP's freedom from state jurisdiction is also good news to cable companies like Comcast (CMCSA:Nasdaq), Cox (COX:NYSE) and Time Warner (TWX:NYSE), which have Net calling plans through telco partners like MCI (MCIP:Nasdaq) and Sprint (FON:NYSE).
Vonage is required to provide emergency call location information known as E911 so operators and dispatchers can identify where calls originate.
The ruling didn't help shares of the regional phone giants, which continue to watch competing technologies siphon off revenue and customers. Verizon (VZ:NYSE) shares fell 13 cents to $40.97 and SBC (SBC:NYSE) was down 19 cents to $29.10 in midday trading.
Despite the apparent threat to its core business, Verizon said in a press release that it supported the FCC's decision. The company has in the past indicated an interest in rolling out voice-over-the-Net services of its own, though it hasn't gone beyond trial marketing so far.
"Treating Voip with a consistent and light regulatory touch is the best way to spur its development and serve the needs of consumers," Verizon said in a statement.
http://www.vonage-forum.com/article1341.htm
Read The Full Thread: FCC Serves Up Tax Break - Why charged by FCC now?
• The point of the FCC's ruling was to prohibit state regulation of VoIP. The FCC
• Thanks scerruti for the heads up :target:
MrMM posted "The new charge for Vonage consumers "Federal Universal Service Fund tax"" on 10/09/2006 |
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