India Broadband Forum

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My Weblogs Inc. buddy Michael wrote the words "with good reason" in a post about the Universal Service Fund, and I just wanted to take a brief but opposing position on the USF. This fee, which was originally designed to tax the access lines of the cities in order to provide access for the rural areas, is supposed to apply to the LINES in service, not to the voice application itself. Otherwise, USF would have to be assessed on Yahoo Voice, Skype, Gizmo, and every other player that offers voice service--and for that matter, on long distance carriers, distributed PBX providers, and all kinds of the other firms that offer voice services without owning delivery lines. Still, it's being laid at the feet of Vonage and other phone replacement services because these are the services that MOST CLOSELY RESEMBLE the old-fashioned phone company. Still, the infrastructure isn't Vonage's; the delivery lines don't belong to Vonage. So why does Vonage get stuck with the bill?

Answer: Big Telecom has found a way to strongarm Vonage using the guise of good intentions, a la the USF.