A federal appeals court ruled the Tex. PUC can’t include proceeds...
A federal appeals court ruled the Tex. PUC can’t include proceeds from interstate and international calling in the revenue base on which a telecom carrier’s state universal service fund assessment is figured. The U.S. Appeals Court, Dallas, was ruling…
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on an Oct. 2002 AT&T suit against the PUC, in which AT&T argued it shouldn’t have to pay the 3.6% state universal service assessment on interstate and international calling revenues because that money already is subject to FCC assessment for the federal universal service fund. AT&T won in lower court March 2003, but the PUC appealed. AT&T continued to recover its universal service assessments from its customers but put the disputed portion into escrow while the PUC’s appeal was being considered. If the appeals court’s decision stands, AT&T said it will refund the money to customers. The decision will cost the state fund about 18.5% of its annual revenues, or about $100 million yearly -- and possibly more because the state may have to reimburse other telecom carriers for unlawful assessments. The state has until July 15 to seek reconsideration by the 5th Circuit or until the end of Sept. to appeal to the U.S. Supreme Court. The PUC said it will meet to discuss funding options, including raising the state telecom excise tax on local and intrastate calling.