Earlier this month we mentioned that the FCC was looking at taxing broadband connections. Well it looks like a decision has been made regarding the “taxability” of broadband. Telecompetitor reports…

Hillicon Valley is reporting that the FCC apparently has scrapped the idea of including broadband services in the base of telco revenues against which funding for its broadband Universal Service program, known as the Connect America Fund, would be collected.

The issue remains however – in short where will funding for Connect America Fund come from?

Telecompetitor speculates (or maybe brainstorms)…

If broadband revenues cannot be tapped to support the broadband program, the FCC may have to rely on alternative collection methodologies, such as making assessments on a phone-number basis, including other non-broadband revenues such as text messaging in the contribution base, or continuing to make assessments based on long-distance revenues.