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-USF Hits VoIP and
Wireless Providers - Tax Relief for Long Distance Callers-AT&T Receives Access Tariff Waiver -American Samoa IXC Rate Integration -Argent Networks Launches New Content Mediation Platform -AT&T Offers Video Over Phone Lines in Connecticut -Elective Alternative Regulation Plan for Champaign Telephone -Michigan's Telecom Competition Status -North Dakota's Historic Shift in the Phone Industry
-Zip-Tel: A Different Kind of Zip Code Database
-June -January
2005
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The FCC has
adopted a ruling that requires VoIP
providers to begin contributing to the
Universal Service Fund (USF) and increases
the amount wireless providers must
contribute. VoIP providers will be required
to pay a 64.9 percent "safe harbor"
percentage of interstate revenue. Wireless
providers "safe harbor" percentage was
raised from 28.5 percent to 37.1 percent.
Actual percentage of revenue paid will vary
with VoIP providers paying around 7 percent
of revenue while the wireless increase is
estimated at 4 percent. Both providers have
the option of basing contributions on actual
revenue or on traffic studies that estimate
revenue.
The FCC
deregulated DSL broadband service last year
ending those USF contributions sometime this
summer. The government also recently
repealed the federal excise tax paid by
phone service customers. It's likely the new
VoIP and wireless USF rulings will offset
the impact of those decisions.
VoIP
providers are going to see their costs rise.
In addition to the USF fees, there will be
costs to develop new tracking and billing
systems. Consumers may pay more since
companies have the option of passing these
charges on to customers. However, increasing
prices for consumers may create problems for
VoIP providers since lower prices is one of
the main attractors for their customers.
This latest
ruling by the FCC may be temporary. The
Commission said that these interim steps
will stabilize the contribution base for the
USF and minimize impact to consumers and
others while the Commission considers more
fundamental reform. The Commission also is
seeking comments on the interim contribution
obligations imposed in this ruling
indicating that more work is ahead.
Tax Relief for
Long Distance Callers
Millions of Americans are eligible to
file for a refund of their long distance tax charges.
An excise tax, originally imposed in the late 1800s to
fund the Spanish-American War, is being phased out
because of court challenges.
On May 25, 2006, the United States
Treasury Department announced it is conceding the legal
dispute over the 3% federal excise tax on long distance
telephone service and that the Internal Revenue Service
(IRS) will issue refunds of tax on long distance service
for the past three years.
For the average consumer, the 3% refund
may only amount to around $20 to $50 per person.
However, for callers who make a substantial amount of
long distance and cellular calls, the amount may be much
higher. Anyone who has paid for these services over the
last three years is entitled to a refund.
The
IRS says:
No immediate action is required by taxpayers.
Refunds will be part of 2006 tax returns filed in
2007.
Refund claims will cover all excise tax paid after
February 28, 2003 on long distance service and will
include interest.
The announcement does not affect the federal tax on
local service or any state or local taxes.
The IRS is working on a simplified method for filing
a claim.
Further information can be found in IRS Notice
2006-50
The agency anticipates there will be more
than 100 million refund claims. They expect to have two
methods for determining refund amounts, one that doesn't
require taxpayers to submit documentation and one that
does. For consumers who have spent a lot on long
distance calls, compiling phone records for the IRS may
be worthwhile.
AT&T Receives Access Tariff Waiver
In Order DA 06-1101, the Commission
granted AT&T a limited waiver of section 61.42(g) of the
rules to exclude its True IP to PSTN ("TIPToP") service
from any price cap basket for purposes of the 2006
annual access tariff filing. AT&T stated that TIPToP
"provides Internet Protocol Voice Information Service
Providers (IP-VIS Providers) with connectivity" to the
AT&T network.
The Order found that TIPToP does not fit
squarely within the price cap structure because it
appears to include both traffic-sensitive and trunking
elements. The Commission noted that it is still
investigating the appropriate regulatory treatment of
IP-based services, including the intercarrier
compensation rules that apply to IP-originated traffic.
The Commission stated that the waiver would serve the
public interest by permitting the Commission to address
the appropriate regulatory treatment of IP-originated
traffic in a more comprehensive manner before addressing
more detailed issues.
American Samoa
IXC Rate Integration
At the end of May, the FCC determined
that the American Samoa Government and the American
Samoa Telecommunications Authority ("ASTCA") have
implemented the measures necessary to facilitate the
ability of IXCs to integrate their service offerings to
American Samoa.
The Commission lifted the suspension of
the rate integration requirement applicable to American
Samoa, and required IXCs serving American Samoa to offer
integrated rates for service to and from American Samoa
by May 25, 2007. Thereafter, the annual certification of
compliance with rate integration filed by the IXCs must
include American Samoa.
Argent Networks
Launches New Content Mediation Platform
Argent Networks introduced ACMP, a new
content mediation platform for telecommunications
carriers' to manage and generate revenues from a rapidly
growing convergence of data on mobile and fixed
networks.
Argent expects a strong demand for its
ACMP service from telecommunications carriers and other
data rich content providers in both established and
emerging markets.
For more information on Argent or its
products please visit:
AT&T
Will Offer Video Over Phone Lines in Connecticut State
regulators approved a plan by AT&T to offer video over
phone lines without requiring it to seek a cable
franchise. In a 3-2 vote, commissioners of the
Department of Public Utility Control said AT&T
demonstrated that its video product is a packet of data
streamed over a network that is "fundamentally
different" from cable TV. AT&T
said the decision spurs competition, giving consumers
more choice. A representative of the cable TV industry
denounced the decision as a boon to AT&T, which is now
free of regulations intended to protect consumers. An
appeal is likely.
Elective Alternative
Regulation Plan for Champaign Telephone
The Public Utilities Commission of Ohio
approved an elective alternative regulation plan for The
Champaign Telephone Company. The Commission adopted an
"off-the-shelf" generic alternative regulation plan that
any incumbent local telephone company could adopt and
established a process by which a company could elect the
plan.
All other regulated telecommunication
services, which include some custom calling features and
toll services, would not to be subject to any rate caps
and may be priced at market-based rates.
Champaign's plan became effective June
23, 2006.
Michigan's Telecom Competition Status The
Michigan Public Service Commission released its sixth
annual report on the status of telecommunications
competition in the state. The report examines the state
of competition in the toll and local exchange service
markets in Michigan.
Highlights of the report include: The
total number of wireline subscribers decreased by 10
percent from 2004 to 2005, reflecting a continued
loss to mobile wireless and other types of
telephony, including Voice over Internet Protocol,
and movement away from using dial-up Internet to
high-speed connections. The
FCC reports that the number of wireless subscribers
in Michigan grew 15 percent in 2005 over 2004.
AT&T Michigan's share of the market increased from
56.9 percent to 62.6 percent. The
competitive wireline share of the Michigan market
fell from 27.5 percent to 21.2 percent in 2005.
The entire report is available at:
North Dakota's Historic Shift in the
Phone Industry
In early May, Commissioner Tony Clark
released a statistical report showing a historic shift
in the phone industry in North Dakota.
For the first time, there are more
wireless phones in use in the state than land-based
phones. For 2006, there are an estimated 394,752
wireless phone in use compared with 328,762 land-based
access lines.
In
2005, there had been 335,006 landlines, compared to
325,109 wireless sets.
The
number of wireless sets in use in North Dakota last year
grew by over 21 percent. "To put the growth of wireless
in perspective, consider that while the total number of
landlines dropped for the second straight year, the
total number of all phone devices is up nearly 10
percent. The phenomenal growth in wireless is fueling
that increase," Clark said.
The
report also revealed insights into the state's growing
competitive phone business among wired phone providers.
CLECs now serve 66,812 lines. Collectively, ILECs serve
261,950 lines.
In
total, non-traditional and non-incumbent phone
providers, including wireless and wireline CLEC's, now
serve 64 percent of the North Dakota phone market. There
are 461,564 non-incumbent phone access lines compared to
261,950 traditional phone lines provided by incumbent
local providers.
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