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Cable VoIP Providers to Pay Fees to the FCC 2007-08-08
According to a ruling put out by the Federal Communications Commission yesterday, cable companies will now be required to deliver a portion of their VoIP earnings to the federal government. The contributed revenue will be used to help fund the FCC’s annual budget.

Although the National Cable & Telecommunications Association didn’t oppose the motion, it also stated its preference that the contributions be calculated on a per-phone-number basis—a condition the FCC refused to honor. Instead, the regulatory fees will be collected using a revenue-based formula. Cable VoIP providers will need to allocate part of their triple-play revenue exclusively to VoIP in order to derive the actual amount owed.
 
The money derived in this manner will help fuel the FCC’s budget, which requires the agency to collect $ 290.2 million in order to fund its operations for the 2007 fiscal year.
 
Last year it was discovered that cable subscribers could actually save more than $ 60 billion in five years by switching from traditional phone service to cable VoIP. On average, according to a J.D. Power and Associates survey, cable VoIP users pay $ 11.19 less each month than their more traditional counterparts.

By Brian Solomon
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