November 18, 2005

U.S. proposes VoIP tax for rural broadband

Two congressmen have proposed levying a tax on broadband and Internet telephony as a means of funding rural broadband expansion.

The proposal released Thursday will be open for comment until Christmas and will likely be debated in the House Energy and Commerce Committee next year.

CNet.com said Friday that the new tax was considered necessary because the Universal Service Fund, which subsidizes rural and high-cost areas, has been under-funded.

The proposal would charge independent VoIP providers as well as major cable companies such as Time-Warner that include VoIP in their menu of services.

"The current state of USF is doomed," Rep. Lee Terry, R-Neb., said in a statement. "There are too few users paying into USF to meet the growing needs."

Copyright 2005 by United Press International

Citation: U.S. proposes VoIP tax for rural broadband (2005, November 18) retrieved 19 April 2024 from https://phys.org/news/2005-11-voip-tax-rural-broadband.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.

Explore further

Livestock associations sue Colorado, U.S. Fish and Wildlife to delay gray wolf reintroduction
0 shares

Feedback to editors
Load comments (0)