[Cybertel-Ann] Vonage v FCC

[Robert Cannon]

Vonage v FCC No. 06-1276 DC Cir. June 1, 2007
http://pacer.cadc.uscourts.gov/docs/common/opinions/200706/06-1276a.pdf

Petitioners, providers of voice over internet protocol
services (VoIP), challenge a Federal
Communications Commission order requiring them to
contribute to the Universal Service Fund (USF).
Specifically, they claim that, in requiring such
contributions, the Commission exceeded its authority
under the Telecommunications Act of 1996 and acted
arbitrarily and capriciously by (1) analogizing VoIP
to wireline toll service for the purposes of setting
the presumptive percentage of VoIP revenues generated
interstate or internationally, (2) requiring
pre-approval for traffic studies submitted by VoIP
providers but not for those submitted by wireless
providers, and (3) suspending the “carrier’s
carrier rule” with respect to VoIP. We conclude that
the Commission has statutory authority to require VoIP
providers to make USF contributions and that it acted
reasonably in analogizing VoIP to wireline toll
service for purposes of setting the presumptive
percentage of VoIP revenues generated interstate and
internationally. But finding the Commission’s
explanation wanting as to the pre-approval of traffic
studies and the suspension of the carrier’s carrier
rule, we vacate those portions of the Order.




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