Networking

06:00 AM
Connect Directly
RSS
E-Mail
50%
50%

VoIP Services Beat Regulation--For Now

Minnesota ruling keeps states from taxing VoIP calls, but courts are still mulling service fees.

In a November 2004 ruling, the FCC found DigitalVoice to be an Internet service and not a conventional phone service. But those differences may not hold true for other VoIP providers. The FCC also found that voice over the Internet could not be "cost effectively" separated into interstate and intrastate communications, which would make it possible for states to tax in-state calls. But if a cost-effective method arises, a tax may follow.

Federal courts in New York and California are still pondering a state tax on VoIP services over Internet. It's likely they'll follow the Minnesota decisions, but there is a lot of ground to cover. States may still tax Internet phone businesses, and the FCC has yet to decide whether Internet phone services are subject to fees by other carriers to complete calls, universal service fees to subsidize rural carriers and emergency 911 service fees.

Comment  | 
Print  | 
More Insights
Cartoon
Slideshows
Audio Interviews
Archived Audio Interviews
Jeremy Schulman, founder of Schprockits, a network automation startup operating in stealth mode, joins us to explore whether networking professionals all need to learn programming in order to remain employed.
White Papers
Register for Network Computing Newsletters
Current Issue
2014 Private Cloud Survey
2014 Private Cloud Survey
Respondents are on a roll: 53% brought their private clouds from concept to production in less than one year, and 60% ­extend their clouds across multiple datacenters. But expertise is scarce, with 51% saying acquiring skilled employees is a roadblock.
Video
Twitter Feed