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FCC approves Net-wiretapping taxes ~ Broadband providers and Internet phone companies ...impacted...
ZDNET ^ | May 3, 2006, 10:53 AM PT | Declan McCullagh, and Anne Broache, CNET News.com

Posted on 05/03/2006 12:12:38 PM PDT by Ernest_at_the_Beach

WASHINGTON--Broadband providers and Internet phone companies will have to pick up the tab for the cost of building in mandatory wiretap access for police surveillance, federal regulators ruled Wednesday.

The Federal Communications Commission voted unanimously to levy what likely will amount to wiretapping taxes on companies, municipalities and universities, saying it would create an incentive for them to keep costs down and that it was necessary to fight the war on terror. Universities have estimated their cost to be about $7 billion.

"The first obligation is...the safety of the people," said FCC Commissioner Michael Copps, a Democrat. "This commission supports efforts to protect the public safety and homeland security of the United States and its people."

Federal police agencies have spent years lobbying for mandatory backdoors for easy surveillance, saying "criminals, terrorists and spies" could cloak their Internet communications with impunity unless centralized wiretapping hubs become mandatory. Last year, the FCC set a deadline of May 14, 2007, for compliance. But universities, libraries and some technology companies have filed suit against the agency, and arguments before a federal court are scheduled for Friday.

"We're going to have a lot of fights over cost reimbursement," Al Gidari, a partner at the law firm of Perkins Coie, who is co-counsel in the lawsuit, said in an interview after the vote. "It continues the lunacy of their prior order and confirms they've learned nothing from what's been filed" in the lawsuit, he said.

The original 1994 law, called the Communications Assistance for Law Enforcement Act, or CALEA, authorized $500 million to pay telecommunications carriers for the cost of upgrading their networks to facilitate wiretapping. Some broadband and voice over Internet Protocol (VoIP) providers had hoped that they'd be reimbursed as well.

Jonathan Askin, general counsel of Pulver.com, likened Wednesday's vote to earlier FCC rules extending 911 regulations to VoIP. "It essentially imposed a mandate on the industry without giving the industry the necessary support to abide by the rules--and the same thing seems to be happening here," Askin said.

Even without the CALEA regulations, police have the legal authority to conduct Internet wiretaps--that's precisely what the FBI's Carnivore system was designed to do. Still, the FBI has argued, the need for "standardized broadband intercept capabilities is especially urgent in light of today's heightened threats to homeland security and the ongoing tendency of criminals to use the most clandestine modes of communication."

The American Council on Education, which represents 1,800 colleges and universities, estimates that the costs of CALEA compliance could total roughly $7 billion for the entire higher-education community, or a tuition hike of $450 for every student in the nation. Documents filed in the lawsuit challenging the FCC's rules put the cost at hundreds of dollars per student.

But during Wednesday's vote, commissioners dismissed those concerns as unfounded. "I am not persuaded merely by largely speculative allegations that the financial burden on the higher-education community could total billions of dollars," said FCC Commissioner Deborah Taylor Tate, a Republican.



TOPICS: Business/Economy; Extended News; Government; News/Current Events; War on Terror
KEYWORDS: 109th; bigbrother; broadband; fcc; internet; internettaxes; wiretaps
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1 posted on 05/03/2006 12:12:41 PM PDT by Ernest_at_the_Beach
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To: ShadowAce; NormsRevenge

fyi


2 posted on 05/03/2006 12:13:26 PM PDT by Ernest_at_the_Beach (History is soon Forgotten,)
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To: Ernest_at_the_Beach

The Al Gore tax on telecoms and us to pay for internet wiring is still on the books.


3 posted on 05/03/2006 12:14:56 PM PDT by Semper Paratus
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To: Ernest_at_the_Beach
Falls under "unfunded mandates". That's the same as a tax increase.
4 posted on 05/03/2006 12:16:25 PM PDT by manwiththehands (No, usted no puede!)
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To: Ernest_at_the_Beach

I didn't realize the FCC had the power to tax.


5 posted on 05/03/2006 12:17:18 PM PDT by WorkerbeeCitizen (I think - therefore I am conservative)
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To: Ernest_at_the_Beach
"The Federal Communications Commission voted unanimously to levy what likely will amount to wiretapping taxes on companies, municipalities and universities, saying it would create an incentive for them to keep costs down and that it was necessary to fight the war on terror. Universities have estimated their cost to be about $7 billion."

New Taxes direct from the GOP socialists in the Executive Office.
6 posted on 05/03/2006 12:17:38 PM PDT by ARCADIA (Abuse of power comes as no surprise)
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To: rdb3; chance33_98; Calvinist_Dark_Lord; Bush2000; PenguinWry; GodGunsandGuts; CyberCowboy777; ...

7 posted on 05/03/2006 12:18:12 PM PDT by ShadowAce (Linux -- The Ultimate Windows Service Pack)
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To: Ernest_at_the_Beach
Broadband providers and Internet phone companies will have to pick up the tab for the cost of building in mandatory wiretap access for police surveillance, federal regulators ruled Wednesday.

And in the end we will be paying for it(and more) in the form of higher rates. Will the higher rates be reduced after the recoup their losses? yea right!

8 posted on 05/03/2006 12:24:12 PM PDT by Echo Talon
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To: ARCADIA
"The first obligation is...the safety of the people," said FCC Commissioner Michael Copps, a Democrat.
9 posted on 05/03/2006 12:25:21 PM PDT by Echo Talon
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To: WorkerbeeCitizen

A regulation can be a hidden tax, which is what we have here.....


10 posted on 05/03/2006 12:29:33 PM PDT by Ernest_at_the_Beach (History is soon Forgotten,)
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To: Ernest_at_the_Beach

So, we get to pay for the privilege of having the Feds spy on us? No thanks; I'm all for stopping terrorism, but this too much big brother for my tastes and having to pay more taxes is the icing on the cake of my opposition.


11 posted on 05/03/2006 12:29:58 PM PDT by crispy78 (Congressional Motto: Republicans by day, Democrats by night.)
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To: Ernest_at_the_Beach
A regulation can be a hidden tax, which is what we have here.....

Exactly, and that tax will be passed along to the consumers never to be removed.

12 posted on 05/03/2006 12:32:08 PM PDT by Echo Talon
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To: crispy78
No thanks

I don't think they're giving us "patriots" a choice in these matters anymore.

13 posted on 05/03/2006 12:34:33 PM PDT by Realism (Some believe that the facts-of-life are open to debate.....)
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To: Ernest_at_the_Beach
Don't forget to use ZFone for your VOIP.
14 posted on 05/03/2006 12:38:33 PM PDT by antiRepublicrat
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To: Ernest_at_the_Beach

Will this have any effect on the temporary telephone tax we have to pay for defeating our Spanish enemy and freeing Cuba and the Philippines from their iron fist? Remember the Maine!


15 posted on 05/03/2006 12:41:48 PM PDT by KarlInOhio (Contrary to those who say that United 93 was released too soon, I fear it was shown far too late.)
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To: Ernest_at_the_Beach

Haven't these people ever heard of sniffers ? You can get some for free, even.


16 posted on 05/03/2006 12:48:16 PM PDT by cinives (On some planets what I do is considered normal.)
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To: Ernest_at_the_Beach

The article seems to have left out the usual "it's for the children" excuse for imposing a burden.


17 posted on 05/03/2006 12:53:26 PM PDT by glorgau
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To: WorkerbeeCitizen
I didn't realize the FCC had the power to tax.

Or the power to perform illegal search and seizures.
My belief is that only the courts can do that; on an individual basis and for defensible cause...

The FCC needs wholesale replacement?

18 posted on 05/03/2006 1:03:14 PM PDT by Publius6961 (Multiculturalism is the white flag of a dying country)
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To: Ernest_at_the_Beach

WOW!!

Mega bump!


19 posted on 05/03/2006 1:08:17 PM PDT by KSApplePie_two
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To: glorgau
The article seems to have left out the usual "it's for the children" excuse for imposing a burden.

Preferably done using the "won't someone please think of the children!" hysterics of Helen Lovejoy of Springfield.
20 posted on 05/03/2006 1:25:47 PM PDT by AnotherUnixGeek
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