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SMS Subject to USF Surcharges, CPUC Staff Says

California may assess USF and other surcharges on text messaging, said Public Utilities Commission staff. In a Wednesday joint ruling in docket 17-06-023, Commissioner Carla Peterman and Administrative Law Judge Zita Kline sought comments on the staff determination. “The Commission…

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has not expressly or implicitly exempted text messaging, any like service, or any cellular service provider type from the assessment of surcharges,” staff said in the attached paper. “The Commission has not, as an intrastate service, exempted texting. Neither has the California State legislature limited the Commission’s authority over this service as it did with directory listings” and VoIP providers, staff said. “No federal authority, including Congress, has classified texting as an information service or interstate only service or otherwise exempted it from the imposition of surcharges or taxes.” Text messaging is an intrastate and interstate service subject to separations, staff said. “That process necessarily includes a portion of revenue being assigned to the intrastate jurisdictions and subsequently the resulting percentage of revenues derived from it being assessed surcharges.” Comments on the staff paper are due March 23, replies March 30, Peterman and Kline said. Opening briefs for the rulemaking will be due April 13, with replies April 27, they said. Industry and consumer groups clashed on classification of text messaging -- telecom or information service -- in comments last year (see 1708220037).