VoIP providers are setting up meetings to discuss their options i...

The FCC’s universal service reform order, released June 27, lets VoIP providers pay into the USF based on 65% of revenue, a figure known as a “safe harbor,” or submit traffic studies to show the amount of interstate revenue is lower. But if they use traffic studies the FCC no longer will deem them eligible for federal preemption, subjecting them to state regulation. The order said the FCC in the 2004 Vonage Order opted for federal regulation of VoIP because “it was impossible to determine whether calls by Vonage’s customers stay within or cross state boundaries.” But if a VoIP provider can tally its USF payment based on the actual percent of interstate calls, “the central rationale justifying preemption… no longer would be applicable” to that provider. That is, if they can pinpoint their traffic’s jurisdiction, the problem spurring the Vonage Order no longer exists, according to the new order. “It’s a Catch-22,” said Pies, a PointOne vp. NARUC Gen. Counsel Brad Ramsay said the “state friendly” language was welcome. The preemption decision wasn’t mentioned in the news release on the FCC vote June 21 (CD June 22 p1).