Court Approves Universal-Service-Fund Mandates on Cable VoIP

6/01/2007 3:39 AM Eastern

The Federal Communications Commission legally ordered cable companies that provide voice-over-Internet-protocol service to contribute a portion of their revenue to subsidize rural telecommunications services, a panel of the U.S. Court of Appeals for the D.C. Circuit ruled Friday.

The court also upheld the FCC decision that cable VoIP providers are to assume that 64.9% of their revenue is subject to the universal-service-fund tax, which runs about 10% but can vary depending on USF revenue projections.

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