Hot off the press. FCC ruled today that this will not be allowed.
A federal regulatory ruling Wednesday aimed at protecting consumers from text-messaging spam may also help California mobile phone users avoid a proposed state texting tax.
The California Public Utilities Commission has proposed a surcharge on text messaging to help cover its growing budget for programs that help make phone service accessible to the poor, with a vote scheduled for Jan. 10. But the proposal —
first reported Tuesday by the (San Jose) Mercury News — has drawn fast and fierce criticism from opponents.
The wireless industry, business groups and other critics argued California can’t tax text messages unless federal regulators allow state regulators to treat text messaging as a telecommunications service.
On Wednesday, the Federal Communications Commission in a 3-1 decision declared wireless Short Message Service (SMS) and Multimedia Messaging Service (MMS) are “information services” similar to email under the Communications Act — and not a telecommunications service.
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FCC’s decision also denied requests from mass-texting companies that have complained wireless providers are thwarting their ability to reach consumers via texts. Chairman Ajit Pai and Commissioners Michael O’Rielly and Brendan Carr were in favor, with Commissioner Jessica Rosenworcel opposed.
“We commend Chairman Pai and the FCC for protecting consumers from an avalanche of messaging spam and allowing them to continue to benefit from a flourishing and competitive messaging ecosystem,” said Scott Bergmann, CTIA’s senior vice president for regulatory affairs.
The vote could have an impact on California’s proposal to tax text messages. The Public Utilities Commission had no immediate response Wednesday, but text tax critics considered the FCC decision a victory.
“We hope that the CPUC recognizes that taxing text messages is bad for consumers,” said Jamie Hastings, senior vice president of external and state affairs for CTIA, which represents the U.S. wireless communications industry, including AT&T Mobility, Sprint, T-Mobile, and Verizon.
“Consumers exchanged 1.77 trillion messages in 2017, making text messages one of the most common and effective means of communication for Americans,” Hastings said. “Taxing this service would burden those who rely on and use this service each and every day.”
