Internet Phones Must Pay Into Subsidy Fund

Consumers who use wireless or Internet-based telephones could see their bills rise, as the U.S. Federal Communications Commission approved on Wednesday an interim new plan for funding phone service subsidies.

The FCC ordered Internet telephone services like Vonage Holdings Corp. (VG.N) to contribute part of their revenue into the Universal Service Fund, which subsidizes phone service to rural and low-income areas as well as communications services and Internet access for schools, hospitals and libraries.

The agency also increased the amount wireless telephone providers would have to pay into the fund. The move may lead to higher wireless and Internet telephone bills because the companies typically pass the fees on to customers.