In documents filed with a federal court, the New Mexico Public Regulation Commission (NMPRC) countered claims by Vonage Holdings that FCC rules preempt the authority of state regulators to assess universal service fund (USF) surcharges on voice-over-Internet protocol (VoIP) providers. In support of its contention, the NMPRC pointed to the FCC’s declaration in a separate but similar case that the agency’s 2004 order does not prohibit states from subjecting VoIP operators to USF fees. The NMPRC is seeking a declaratory ruling from the U.S. District Court for the District of New Mexico that would force Vonage to comply with an NMPRC order, handed down last year, that requires VoIP operators within the state to report intrastate revenues for the purpose of calculating and remitting mandated contributions to the state USF fund. Vonage, which has refused to obey the NMPRC order, cited provisions of the 2004 FCC order that proclaim the impossibility of distinguishing between intrastate and interstate VoIP traffic on which carrier USF fees are based. As such, Vonage told the court in a motion for dismissal that the NMPRC lacks jurisdiction to impose USF surcharges on VoIP carriers. In documents filed with the court, however, the NMPRC cited a brief, filed in a related case before the Eighth Circuit Court of Appeals, in which the FCC states that its 2004 ruling does not preempt states from assessing USF fees on VoIP providers. Observing that technological advancements since 2004 have made it possible for VoIP providers to distinguish between interstate and intrastate traffic, the NMPRC also told the court that Vonage is basing its claims on an “obsolete and inapposite pronouncement by the FCC.”