CloudTechCase Studies

Communication Service Providers : Losing Money To FCC Safe Harbor Ratios?

Anyone who works in the realm of 3Gs, 4Gs and Internet protocols knows this: Rapid adoption of new technologies has forever changed how we communicate.


Communication Service Providers: Losing Money To FCC Safe Harbor Ratios?
Published By - hitechnectar

Are you losing money to FCC safe harbor ratios?

Anyone who works in the realm of 3Gs, 4Gs and Internet protocols knows this:

The rapid adoption of new technologies has forever changed how we communicate.

Cellular networks, cable, satellite, VoIP and a multitude of emerging innovations have expanded the scope of the communications industry to include so much more than traditional telephone calls. Today, when customers want to initiate voice calls, they can opt for flat-rate monthly plans to do so while crossing state lines or use VoIP to speak with people on the other side of the world without incurring long-distance fees.

The lightning-fast pace of advancements has governing bodies in a bind:

How do states and the federal government effectively regulate an industry that’s in a continuous state of change? Which taxes and fees should be applied, and when? As technology evolves faster than the law, the answers to these questions and others like them change frequently. As a result, communication service providers (CSPs) face some of the most complex calculations in the entire tax industry. Different areas of communications are all taxed in very different and exceptionally complex ways.

In an effort to help simplify one of the more complicated aspects of communications taxes for cellular and VoIP profiders, the Federal Communications Commission offers safe harbor ratios to gauge tax payments on the interstate and international voice calls.

On the surface, it seems like a straightforward solution. But this safe harbor option brings about yet another challenge for communication service providers. That is determining if, and when, using the FCC’s predetermined ratios will benefit your business.

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