After 50 Technology » Internet phone taxes increase

29 June 2006

Internet phone taxes increase

From the CNN Money article Internet phone bills may rise FCC says Internet-based phone providers must contribute to a subsidy fund:

“Consumers who use wireless or Internet-based telephones could see their bills rise, as the U.S. Federal Communications Commission approved Wednesday a new plan for funding phone service subsidies.

The FCC ordered Internet telephone services like Vonage Holdings Corp. to contribute part of their revenue into the Universal Service Fund, which subsidizes phone service to rural and low-income areas as well as communications services and Internet access for schools, hospitals and libraries.

Under the plan adopted by the FCC commissioners, providers of Internet telephone service, known as Voice over Internet Protocol, or VOIP, would have to pay about 7 percent of their revenue into the fund under the current contribution factor.”

Vonage spokeswoman Brooke Schulz said the FCC’s decision would add a $1 fee to a typical customer’s $25 monthly bill in The Washington Post article Internet Phone Firms Must Pay Subsidy. However, even as taxes continue to rise the price of VOIP internet phone service is falling.

“The prices are going to be controlled by the market, and both marketplaces are highly competitive,” said Eric Rabe, spokesman for Verizon. “The reality is, our voice over IP service has gone from $35 to $25 over the last six months, and the prices are headed in that direction, not up.”

Filed under PC to Phone at 7:49 pm

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29 June 2006

Internet phone taxes increase

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