HOLMDEL, N.J., June 21, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Today the FCC voted to include all Voice over Internet Protocol (VoIP) services under its new interim Universal Service rules. VoIP customers regardless of provider will soon be obligated to pay the Universal Service Fund (USF) tax directly. However, due to the elimination of Federal Excise Tax (FET) from VoIP services the new USF tax will result in a net slightly higher customer bill. Vonage is assessing which method of contribution will be most beneficial for its customers.

"Vonage fully supports its obligations to government programs. Last month the Treasury advised us to cease collecting FET, to the benefit of customers, and now we must begin to collect USF tax, balancing the scales," said Mike Snyder, CEO, Vonage Holdings Corp. "Now that VoIP customers will be contributing directly to the fund, we hope as a result of this interim rule, VoIP companies will now be able to utilize universal service funds enabling Vonage and the industry as a whole to bring new technologies like ours to rural America."