The FCC shouldn’t subject VoIP to state universal service fees...

The FCC shouldn’t subject VoIP to state universal service fees without first seeking comment, said House Commerce Committee Ranking Member Joe Barton, R-Texas, and Communications Subcommittee Ranking Member Cliff Stearns, R-Fla. In a letter Tuesday to Genachowski, the Republicans said the FCC should “afford this issue due consideration in a notice of proposed rulemaking, rather than just address it in a declaratory ruling.” Levying state fees “would alter settled expectations and could have a significant impact on investment, economic growth, and broader universal service reform,” they said. “Addressing this in a declaratory ruling would not only provide short shrift to a matter of consequence, it could also raise additional issues about retroactive applicability of such fees.” The FCC circulated an item July 22 responding to a petition by the Nebraska Public Service Commission and the Kansas Corporation Commission for declaratory ruling that states may assess Universal Service Fund (USF) fees on VoIP intrastate revenue (CD Aug 9 p9). States “disagree with any suggestion that a rulemaking is necessary,” said Brad Ramsay, general counsel of the National Association of Regulatory Utility Commissioners. Vonage has stated it doesn’t object to paying state USF fees, and the FCC previously agreed that the statute requires Vonage to pay, he said. “Blocking these assessments can only increase pressure on the already burdened federal USF programs."