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The FCC can require Universal Service Fund (USF) contributions of...

The FCC can require Universal Service Fund (USF) contributions of interconnected VoIP providers though VoIP’s regulatory classification hasn’t been resolved, Verizon said in a white paper sent Tues. to the FCC. The FCC should create an interim VoIP safe…

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harbor or proxy contributions method pending contributions reform, the firm said. There’s no need to decide if VoIP is a telecom or information carrier before acting, since either way the FCC has authority, Verizon said. “If interconnected VoIP is considered a telecommunications service, then an interconnected VoIP provider is a ’telecommunications carrier’… and thus must contribute,” Verizon said: “If interconnected VoIP providers are considered ‘information service’ providers, the Commission can exercise its discretionary authority under Section 254(d) to compel them to contribute.” That section empowers the FCC to require contributions from “other providers of interstate telecommunications… if the public interest so requires.” One way to assess USF contributions for VoIP providers is to apply the same safe harbor figure used for wireless providers -- 28.5% of retail revenue, Verizon said. The wireless figure was adopted in 1998 because it was hard to discern between intrastate and interstate wireless revenue. USF contributions are based only on interstate revenue.