CLIENT MEMORANDUM: Current Status of State Regulation of VoIP Services

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Our firm drafted the attached memorandum to address the current state of interconnected Voice over Internet Protocol (“I-VoIP”) regulation in light of the recent decision of the U.S. Court of Appeals for the Eighth Circuit (“8th Circuit”) preempting the imposition of the Nebraska Public Service Commission‘s (“NPSC”) state Universal Service Fund (“USF”) fees on nomadic service providers. This decision represents the latest in a series of decisions questioning states‘ exercise of jurisdiction over nomadic I-VoIP services on the basis of a conflict with federal objectives and likely has important implications for providers of both nomadic and fixed I-VoIP services.

As outlined in the memorandum, all VoIP providers should monitor relevant FCC proceedings, in particular the IP-Enabled Services Docket and WC Docket 06-122 in which the KCC and NPSC filed their petition, and review and contemplate the effects of the 8th Circuit and corresponding decisions on their particular business model.

Any questions or concerns about this Memorandum should be directed to Jonathan S. Marashlian, (703) 714-1313 or jsm@commlawgroup.com. Clients interested in staying abreast of regulatory developments affecting VoIP services at the FCC, as well as the states, can choose from a variety of firm Resources, including our Interconnected VoIP Regulatory Compliance Manual and monthly Tracking & Monitoring Reports.See below.Additional details are available on our firm‘s website:https://www.commlawgroup.com/Resources.asp.

Thank you.

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