VoIP costs have steadily come down, dramatically changing the face of telecom and how the telcos compete. This has of course, been a great thing for VoIP consumers. Reps. Joe Barton (R-TX) and Cliff Stearns (R-FL) agree. Both have asked the FCC to prevent states from collecting universal service fees (USF) from VoIP providers, in response to an FCC petition for a declaratory ruling.
State governments are under the gun lately due to the housing crisis and the recession. While the recession is technically over, recovery is sluggish, a double-dip recession still threatens, and housing prices are still dropping like stones. The result? States have no money—most notably, big-spending California. Of course, I love California, used to live there, and enjoyed every minute of it, but like many middle class individuals, simply got squeezed out by the unrealistic cost of living. But I digress.
My point is that states are looking for ways to bring in money. Here in my home state of Indiana (yes, I know—big difference from the coast!) they seem to be on a fairly even keel budget-wise, but we’re the exception. It seems we Hoosiers just know how to keep a budget better than the fun-loving West Coasters! So how will those cash-strapped states bring in the dough to fund services? By taxing anything they can, and one of those things is VoIP.
A previous 2004 ruling pre-empts states from regulating VoIP, but Nebraska and Kansas are leading the charge to collect the fees.
