Citing what they believe to be erroneous conclusions in a recent Eighth Circuit Court ruling, the Nebraska Public Service Commission (NPSC) and the Kansas Corporation Commission asked the FCC to declare that states are authorized to collect intrastate universal service fund (USF) contributions from providers of nomadic voice-over-Internet protocol (VoIP) services (such as Vonage Holdings) whose customers are not tied to a specific fixed location. News of the states’ petition came to light as a federal district court in New Mexico denied the New Mexico Public Regulation Commission’s (NMPRC’s) appeal of a magistrate’s decision that Vonage and other nomadic VoIP operators are not subject to state USF surcharges on intrastate retail telecommunications services. At issue is the Eighth Circuit’s interpretation of the FCC’s 2004 Vonage order in which the FCC acknowledged the “impossibility” of separating a nomadic VoIP provider’s interstate and intrastate traffic for the purpose of calculating interstate revenues on which federal USF contributions are based. In the Eighth Circuit case that involved the NPSC, the FCC—which already requires nomadic VoIP operators to pay federal USF fees that are based on the assumption that 64.9% of a nomadic provider’s revenues are interstate—filed an amicus brief in support of the NPSC’s contention that the Vonage order did not preempt the right of states to collect intrastate USF fees from nomadic providers. The court ruled, however, that the FCC holds exclusive jurisdiction over USF and that the states are not authorized to impose intrastate USF fees on VoIP operators unless the FCC directs them to do so. Arguing that, in the Vonage order, “the FCC provided a rationale that clearly distinguishes state USF assessments from the state entry and economic regulation that the FCC did preempt,” the states told the agency: “there is no conflict between federal assessment of interstate nomadic VoIP revenue and state assessment of intrastate nomadic VoIP revenue.” As such, the states urged the FCC to “formulate the position it took in its amicus curiae brief and clarify the Vonage preemption order by declaring that the order did not preempt state USF assessments of intrastate nomadic VoIP revenue.”