Feds tell states 'VoIP is ours'

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VoIP is not just phone service, IM type is the future: If it looks like a phone, works like a phone, then IT IS A PHONE and should have the same charges as any other phone company.

Its not that simple. First consider IM type services which will replace phones for many applications - should it be taxed even though it looks nothing like a phone? Embed the IM functionality into a spreadsheet, now does every document which could possibly use VoIP enabled IM also be taxed because it could be used (like the USL tax which is applied even if you make no calls)?

Now, look at why private networks as deployed by all the mid-big companies, it completely kills the USL taxation model on VoIP service.

If a company buys a PBX and installs a private network between its offices (say a major bank for example) it owns the phone service itself and does not pay per phone taxes. They pay per facility or per line taxes. This is already the way it works.

If a company buys the same lines and puts TCP/IP over the wires instead of a traditional telco protocol (converge voice onto data rather than data onto voice) they have already paid a tax when they bought the facilities used to tie the offices together.

If the same company buys a TCP/IP line rather than a Frame Relay or X.25 line the line is still taxed. If they upgrade their PBX to talk IP between the offices instead of TDM or Frame Relay it is still the same application (different transport protocol) and they should not have to pay a new tax.

If they buy an IP-PBX service from a service provider and put the traffic over an IP VPN it still looks like the old private line branch office network and there still should be no new tax.

This grab for taxation to stiffle competition may backfire because it will incite customers not to use outsourced VoIP services and simply go the private network route after buying dark fiber services from the untilities (or going wireless).

Taxing the monopoly service to fund USL is legacy ... let the old dog die with the old network.; Posted by: oldskool Posted on: 04/03/04 You are currently: a Guest | Members login | Terms of Use