FCC Approves VoIP Tax

    June 22, 2006
    WebProNews Staff

The Federal Communications Commissions unanimously agreed that voice-over-Internet-protocol (VoIP) services had to pony up to Uncle Sam just like every other phone carrier.

VoIP services connecting to the public-switched telephone network will have to pay into the decades old Universal Service Fund (USF). This fund is used to subsidize telephone service in rural and low-income areas.

Previously VoIP providers, with no law or ruling applied to the new service, were exempt from the fixed-percentage long distance tax paid by traditional telecommunications companies.

The FCC also targeted cell phone providers by raising their USF taxes. It is unclear yet if the taxes will cause cell phone rate hikes.

Cnet’s Anne Broache goes into greater detail here.