The National Cable & Telecommunications Association (NCTA) sent the Federal Communications Commission (FCC) a letter this week saying it supports the Commission's decision to have interconnected VoIP providers contribute to the Universal Service Fund (USF), but objected to the methods the FCC proposes to calculate the contributions, calling them unfair.

Responding to the increase in the availability and popularity of VoIP service, the FCC is looking to revise rules for how telephony providers contribute to the USF, which offers funds for people and public institutions that are either underserved or cannot afford phone service.

"The Commission's revenue-based methodology is already outmoded and not suitable for a competitive marketplace in which interstate and intrastate calls are offered to customers at a single rate," the NCTA wrote in the letter. "If USF contributions are to be required of interconnected VoIP providers - as they should - the Commission should, as quickly as possible, replace that methodology with a number-based approach.

"Meanwhile, the interim safe harbor adopted for VoIP providers should immediately be revised to reflect the fact that cable VoIP service is more like bundled local and long distance wireline telephone service than like wireline toll service. In addition, the preapproval requirement for traffic studies should be eliminated."

If the FCC were to adopt its proposed methodology, cable operators could end up unfairly paying more into the USF than most other phone companies. MSOs, cable's top lobbying group added, would also be subject to conditions not imposed on other phone companies. In essence, the NCTA is arguing for equal treatment.