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102 USB Mandated Phone
Fee Increase 18% By 2007
YES90 / WASHINGTON -- U.S. households could see a
government-mandated fee on their telephone bills rise as
much as 18.1% by 2007 depending on what changes are made to
a fund that subsidizes communications services,
congressional budget officials said Monday
• • Telephone
carriers that offer long-distance service are required to
pay a percentage of revenues into the Universal Service
Fund, which subsidizes telephone service for low-income
families as well as Internet access in schools and
libraries.
• • Typically those
fees are passed on to consumers. But the emergence of
wireless and unlimited calling plans has raised questions
about whether the fund is sustainable.
• • Some
possibilities for revamping the system include charging a
flat fee for each telephone number or expanding the services
that would fall under the program, according to a report by
the Congressional Budget Office.
• • If no action is
taken, a shrinking long-distance revenue base and increased
demand on the so-called USF program would cause the average
payment by each household to rise 8.1% to $2.26 a month in
2007 from $2.09 a month in 2003, the report said.
• • The monthly
average charge probably would rise to $2.47 a month by 2007,
or 18.1%, if the USF program was switched to a per-number
charge or if cable high-speed Internet service was included
in the revenue for calculating contributions.
• • Alternatively, if
based on usage of multiple communications services, the
monthly fee probably would be $2.28 by 2007, the report
said.
• • Another option
could be funding the USF programs through general Treasury
revenue, the Congressional Budget Office said.
• • "The economic
cost of raising a dollar in general revenues … is
generally less than the economic cost of raising a dollar
from sector-specific taxes, which tend to distort consumers'
choices by affecting the prices of goods and services," the
report said.
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102
USB Mandated Phone Fee Increase 18% By
2007
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