California's broadband tax on phone service poses hard choice
Is it a rock or a hard place?
The ban on state or local Internet access taxes creates a dilemma for policy makers in California. Right now, some broadband infrastructure construction is subsidised by the California Advanced Services Fund (CASF), which gets its money from a relatively small tax on telephone bills.
In other words, telephone customers are paying to improve service and, presumably, reduce costs for broadband subscribers. Nearly all people who buy broadband service are also telephone customers – the CASF tax is applied to mobile and VoIP service too – but the reverse isn’t true.… More