The U.S. Court of Appeals for the Eighth Circuit earlier this month held oral argument in the appeal of a federal district court decision that barred the Nebraska Public Service Commission from requiring voice over Internet protocol (VoIP) service provider Vonage Holdings Corp. to contribute to Nebraska’s universal service fund (USF). The Eighth Circuit’s eventual decision, likely to be issued early next year, will have significant implications for whether and how states will be permitted to assess a state USF surcharge on interconnected VoIP service providers’ revenues. It could also have a broader impact on the extent of state regulatory authority over VoIP.

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