Florida cellular customers may soon see a 50-cent increase in their monthly bill, in the form of a fee to fund 911 technology and distance learning. Some cellular carriers indicated they are vehemently opposed to the fee, which is included in Gov. Lawton Chiles’ proposed budget plan for the fiscal year ending June 30, 1997.
It is expected the fee would generate $11.3 million in the first fiscal year, reported Bob Bradley, the governor’s budget office director. Of that amount $6.8 million, or 60 percent, would fund distance learning, while $4.5 million, or 40 percent, would be devoted to 911 systems, said Bradley.
“Wireless service has little or nothing to do with distance learning,” said GTE Mobilnet spokeswoman Susan Asher. If such a fee is assessed, it should be through general taxation or a fund that does not target wireless customers specifically, added Asher. Ron Burleson, manager of external affairs, at BellSouth Cellular, said his company doesn’t understand why the governor would choose cellular customers to fund distance learning.
Bradley said engaging in distance learning-in which the student and teacher are physically separated and a technological medium is required for communicating-“might consist of video transmission and reception devices or computers connected via phone lines and/or fiber optic cable.”
Also, GTE argues the state should enforce a current law that requires landline customers to pay a 911 fee. Florida counties are responsible for collecting that fee, but some do not impose the entire fee, said Asher.
Charging cellular customers for 911 service is “double dipping on taxes,” said Nicole Lipson, spokeswoman for BellSouth Cellular, noting wireline customers already pay for 911 service.
The Florida Department of Communications indicated to BellSouth, “The reason for the tax is that several of the smaller counties in Florida don’t have 911 service yet,” said Burleson. “Cellular customers shouldn’t have to fund those counties,” he added.
Burleson noted that between 17 percent and 20 percent of a Florida cellular user’s wireless bill is derived from taxes, which he said is one of the highest rates in the nation.
The state chose to tax cellular phones because recent demand for 911 location hardware is in large measure due to the greater use of cellular phones in emergency situations, said Bradley.
However, cellular customers should not have to pay to place Good Samaritan 911 calls, GTE’s Asher stated.
Bill Covington, corporate counsel for regulatory affairs at AT&T Wireless Services Inc. said AT&T wants “to pay our fair share for 911.” He pointed out, however, the Federal Communications Commission is nearing a decision regarding enhanced 911 services and how it will be funded, state by state. Covington said he would prefer 911 funding be handled as one amassed issue rather than taking a “piecemeal” approach, referring to the Florida fee proposal.
The governor’s budget plan currently is under review by the Florida Legislature, said Bradley. A decision is expected in early May. If the fee passes, it would be implemented similar to a state sales tax. Carriers would act as the collection agents, said Bradley.
