FCC Increases Cell Phone Fees

The FCC today approved increases on fees for cell phone and Internet phone providers. The fees, which most traditional phone companies and mobile phone service providers already pay to some extent are used to subsidize the Universal Service Fund, a government program created to ensure phone service in rural and low-income areas. The fund is also used to assist in providing Internet and other communications technology to public institutions such as schools, libraries, and hospitals.

The move primarily target Voice Over IP phone providers like Vonage and cable companies that offer "Internet" phone service, which until now have not been required to contribute to the fund. Ironically, the FCC opted to remove the fee from DSL service.

However, in the process, the FCC has also increased the fees incurred by cell phone companies by one percent of their revenue (bringing the fee to a total of four percent).

More information is available here.