TITLE

You Can Do Something About The Growing Universal Service Burden

AUTHOR(S)
Blaszak, Jim
PUB. DATE
July 2004
SOURCE
Business Communications Review;Jul2004, Vol. 34 Issue 7, p48
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
Over the last year, the federal surcharge has ranged from 8.7 percent to 9.5 percent. In effect, it means that telecom subscribers have paid 8.7 percent to 9.5 percent more for interstate and international telecom services than most rate analyses show. As telecom revenues fall, the percentage factor must increase as a matter of simple arithmetic in order to raise the same amount of universal service subsidies. The higher percentage assessments provide additional incentives for users to choose services that bear smaller or no universal service funding obligations compared to the funding obligations imposed on traditional services. For good reason, the Federal Communications Commission is worried about the sustainability of universal service funding, and consequently is considering whether it should replace the current method for assessing universal service contribution. High-volume telecom customers, particularly those with large data networks should, however, understand that even the very favorable assigned telephone number assessment methodology could produce very undesirable results.
ACCESSION #
13771404

 

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