Over the past few years, the FCC has been redesigning its Universal 
Service Fund.  In last fall's CAF Order, new rules for dispersing the 
fund were laid out.  We've discussed that a bit here.

Last week, the FCC adopted a new Further Notice of Proposed 
Rulemaking, this time on how the funds for USF will be collected.  At 
present, providers of "interstate telecommunications" are taxed; the 
current rate is 17.3%.  It's so high, in part, because the 
contribution base (mostly long distance calling) keeps 
shrinking.  ISPs are not taxed.  But the new Notice opens up all 
sorts of ways to broaden the tax base.  And among those ideas, ISPs 
could be taxed.  That's not the sole idea being put on the table, but 
when they declared DSL to be non-common carriage and removed it from 
the USF rolls, the tax rate on what was left went up 
significantly.  So they may want to put it back on the rolls, but not 
in a way that hurts ILECs' (their patrons') competitive positioning.

The Notice is 182 pages long and I haven't read it all yet, and I 
doubt too many will want to bother.  But I do suggest paying 
attention to this one, so the WISP industry's interests are not 
hurt.  The full notice is here:

http://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0430/FCC-12-46A1.pdf

--
  Fred R. Goldstein              fred "at" interisle.net
  Interisle Consulting Group
  +1 617 795 2701 

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