Vonage Loses In Court

Vonage has lost its appeal against an FCC ruling that means it will have to pay into a universal telecommunications fund.

On Friday, New Jersey-based Vonage lost its challenge in federal appeals court on a rule under which telecommunications companies are required to contribute money to a fund that her finance services for schools and libraries, as well as low-income and rural families. Vonage has been one of the leading companies in using broadband Internet connections to make phone calls.   Vonage had been appealing a 2006 Federal Communications Commission ruling extended the fund payments to providers of  Voice over Internet Protocol (VoIP) phone services. The company claimed that not only had the FCC overstepped its authority, it had also overestimated the amount Vonage owed in payments.   Although judges at the District of Columbia Circuit Court of Appeals ceded two small points to Vonage, they were in agreement with the FCC the VoIP providers needed to contribute to the fund.   “We are pleased that the court vacated portions of the F.C.C.’s U.S.F. order that treated VoIP providers in an inequitable manner,” said Vonage spokesperson Brooke Schulz, adding that the company wasn’t trying to evade its responsibility to contribute to the fun, but was merely challenging “the funding methodology.”   Under the FFC rules, VoIP companies have to contribute 11.7% of their long distance revenue. Last year the fund reached $7.3 billion.