As VoIP evolves, states and the FCC should exercise regulatory control, with the understanding that IP-based telecom and older modalities will co-exist for a long time, said panelists at the winter meeting of the National Association of Regulatory Utility Commissioners in Washington, D.C. VoIP is telecom’s future, but its proliferation will be matched only by its malleability and capacity to spawn new technologies, they said Monday.

State commissions urged the FCC to ignore Vonage threats that the company would go to court if the regulator modifies without a rulemaking proceeding a 2004 declaratory ruling preempting state regulation of interconnected VoIP. In a letter Wednesday to the FCC, the Nebraska Public Service Commission and Kansas Corporation Commission said no administrative law bars the FCC from immediately issuing a fresh declaratory ruling saying VoIP must pay state Universal Service Fund fees. “The prospect of judicial review should not prevent the FCC from reaching the right decision, which is to act expeditiously to protect universal service and fair competition (currently nomadic VoIP is the only category of provider not paying state USF assessments) by issuing a second declaratory ruling supplementing, clarifying (or if necessary modifying) the first declaratory ruling issued in 2004,” they said. The Kansas and Nebraska regulators also rejected arguments by the VON Coalition that state USF assessments are “economic and entry regulation” preempted by the 2004 decision (WID Dec 14 p7). State USF assessments create no conflict between federal and state policies that would necessitate preemption, the states said. “Both the FCC and the State Petitioners share the common policy that nomadic VoIP providers, like all their competitors, must do their part to support the paramount statutory mandate of ensuring universal telephone service throughout the Nation."

State commissions urged the FCC to ignore Vonage threats that the company would go to court if the regulator modifies without a rulemaking proceeding a 2004 declaratory ruling preempting state regulation of interconnected VoIP. In a letter Wednesday to the FCC, the Nebraska Public Service Commission and Kansas Corporation Commission said no administrative law bars the FCC from immediately issuing a fresh declaratory ruling saying VoIP must pay state Universal Service Fund fees. “The prospect of judicial review should not prevent the FCC from reaching the right decision, which is to act expeditiously to protect universal service and fair competition (currently nomadic VoIP is the only category of provider not paying state USF assessments) by issuing a second declaratory ruling supplementing, clarifying (or if necessary modifying) the first declaratory ruling issued in 2004,” they said. The Kansas and Nebraska regulators also rejected arguments by the VON Coalition that state USF assessments are “economic and entry regulation” preempted by the 2004 decision (CD Dec 14 p12). State USF assessments create no conflict between federal and state policies that would necessitate preemption, the states said. “Both the FCC and the State Petitioners share the common policy that nomadic VoIP providers, like all their competitors, must do their part to support the paramount statutory mandate of ensuring universal telephone service throughout the Nation.”

Interconnected VoIP providers should be required to pay state universal service fees, said states and rural wireline carriers in comments filed at the FCC Wednesday on a petition by the Nebraska Public Service Commission and Kansas Corporation Commission (CD Sept 4 p6). But Verizon and Google fought the concept of VoIP having an intrastate component subject to state jurisdiction. Vonage and some other VoIP providers didn’t object to paying state USF, but said the FCC must open a separate rulemaking first.

Interconnected VoIP providers should be required to pay state universal service fees, said states and rural wireline carriers in comments filed at the FCC Wednesday on a petition by the Nebraska Public Service Commission and Kansas Corporation Commission (WID Sept 4 p7). But Verizon and Google fought the concept of VoIP having an intrastate component subject to state jurisdiction. Vonage and some other VoIP providers didn’t object to paying state USF, but said the FCC must open a separate rulemaking first.

The FCC wants comment on a petition by Nebraska and Kansas regulators (CD July 21 p4) for the commission to declare that it never preempted states from charging universal service fees to interconnected VoIP providers on intrastate traffic. The states also asked the FCC to declare that individual states may impose the charges in any way that doesn’t apply to interstate revenue and that ensure no provider pays more than one state for the same intrastate revenue. The states said the FCC could open a rulemaking to decide the matter. Comments are due Sept. 9, replies Sept. 24. In an ex parte meeting last week with FCC General Counsel Austin Schlick, Vonage said the FCC “is free to revisit its decision to pre-empt state imposition of USF” by opening a rulemaking. The VoIP provider said the FCC’s 2004 Vonage pre-emption order said clearly that states can’t impose state USF obligations on the company. Vonage said it doesn’t object to contributing to a state USF, if the requirement applies only going forward. A rulemaking “would be the most legally defensible and equitable response” to the states’ petition: “Opening a rulemaking and inviting comment from all interested parties, including other state public utility commissions, will enable the Commission to offer uniform guidance and ensure that all states have the opportunity to adopt interconnected VoIP USF contribution requirements that do not conflict with federal policy.” A rulemaking could also prevent conflicts when the FCC overhauls the federal USF, it said.

The FCC wants comment on a petition by Nebraska and Kansas regulators (WID July 21 p6) asking the commission to declare it never preempted states from charging interconnected VoIP providers universal service fees on intrastate traffic. The states also asked the FCC to declare that individual states may adopt any mechanism that doesn’t assess interstate revenue and contains procedures to ensure no provider pays more than one state for the same intrastate revenue. The states said the FCC could alternatively open a rulemaking to decide the matter. Comments are due Sept. 9, replies Sept. 24. In an ex parte meeting last week with FCC General Counsel Austin Schlick, Vonage said the FCC “is free to revisit its decision to pre-empt state imposition of USF” by opening a rulemaking. The VoIP provider said the FCC’s 2004 Vonage pre-emption order said clearly that states can’t impose state USF obligations on the company. Vonage said it doesn’t object to contributing to a state USF, if the requirement applies only going forward. A rulemaking “would be the most legally defensible and equitable response” to the states’ petition: “Opening a rulemaking and inviting comment from all interested parties, including other state public utility commissions, will enable the Commission to offer uniform guidance and ensure that all states have the opportunity to adopt interconnected VoIP USF contribution requirements that do not conflict with federal policy.” A rulemaking could also prevent conflicts when the FCC overhauls the federal USF, it said.

Kansas and Nebraska regulators asked the FCC to allow states to charge VoIP providers universal service fund fees on intrastate traffic. Their petition, filed Thursday, is the latest development in an issue that came to a head when Nebraska tried to charge VoIP provider Vonage fees to help support the state’s Universal Service Fund (WID June 8 p6). Kansas and Nebraska asked the FCC to “declare that state USF assessment is not preempted and has not been preempted, so long as the state does not assess interstate revenue.” The petition follows suggestions by the 8th U.S. Circuit Court of Appeals in St. Louis. The court recently turned aside the Nebraska commission’s appeal of a lower court decision banning the assessments, in a lawsuit brought by Vonage. But the 8th Circuit also said that if asked the FCC could issue a declaratory ruling codifying principles the commission expressed in an amicus brief supporting Nebraska’s appeal. The state commissions filed their petition “in the belief that the FCC is the expert agency that should make a determination as to the validity of states assessing nomadic VoIP providers to support their universal service funds,” said an attorney for the commissions.

Kansas and Nebraska regulators asked the FCC to allow states to charge VoIP providers universal service fund fees on intrastate traffic. Their petition, filed Thursday, is the latest development in an issue that came to a head when Nebraska tried to charge VoIP provider Vonage fees to help support the state’s Universal Service Fund (CD June 8 p7). The Kansas and Nebraska utility commissions asked the FCC to “declare that state USF assessment is not preempted and has not been preempted, so long as the state does not assess interstate revenue.”

An FCC report showing that the universal service high- cost fund rose to $4.5 billion in 2008 from $1.3 billion in 1997 highlights the need for change, the House Commerce Committee’s ranking member, Joe Barton of Texas, said Friday. The fund is a “bloated government program in serious need of reform,” Barton and Communications Subcommittee ranking member Cliff Stearns of Florida said in a written statement. The FCC submitted the report in response to an April request from the committee’s Democratic and Republican leaders.