Source: voipcentral.org

The Federal Communications Commission has made it bibding upon VoIP providers to contribute for the first time to the Universal Service Fund.

The increment in fee means high monthly bills in the cards for VoIP subscribers. It means that providers will increase costs to customers.

The USF subsidizes phone services in rural development areas.

The proposal for contribution is 6.8 percent for VoIP revenues. Moreover, cellular companies have to contribute up to 3.9 percent. DSL providers also have to pay extra into the USF.

Via: BetaNews

Source: voipcentral.org

Voice over Internet Protocol (VoIP) providers would be imposed with new tax next year announced, Chairman Kevin Martin on Wednesday.

At this point of time, all telephone services including wireless, pay-phone, long-distance pay a fixed percentage of their revenues to the Universal Service Fund. Universal Service Fund is a multi billion dollar pool resource, which is said to be used to subsidize telecommunications services in rural and other high-cost areas, schools and libraries. Interestingly this fund has been alleged by mismanagement and fraud during its seven-year history.

Earlier in August, FCC’s federal-state joint board on universal service fund had already suggested VoIP providers contributing to the fund. Changes to USF have been suggested as part of a broader overhaul of the 1996 Telecommunications Act. A draft of this legislation written by members of the U.S. House of Representatives Energy and Commerce committee includes provisions on broadband and VoIP services. But with the statement by Kevin Martin yesterday this policy seems to remain a top priority by FCC in next year.

VoIP companies will likely put an additional fees onto their customerss bill to pay for the USF fund.

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