WASHINGTON-A group opposed to assessing universal-service contributions based on telephone numbers said it had sent nearly 600,000 e-mails and letters to the Federal Communications Commission before this Friday’s expected vote.
The Keep USF Fair Coalition says that changing from the current system, which assesses contributions based on long distance and international revenues, to one which assesses a flat rate on every telephone number would “tax” 43 million Americans as much as $700 million. Since wireless carriers have a difficult time dividing long distance and local revenues they typically use a safe harbor percentage of 28. 5 percent of all revenues.
The FCC is expected to consider an item this Friday to reform USF contributions. Since FCC Chairman Kevin Martin has long favored a numbers-based system, many believe that will be the proposal voted on.
“If Congress wants to increase federal phone taxes on 43 million people, let them do it in the open with hearings and a vote where they can be held accountable. Our coalition and the consumers who have joined us see no need for the FCC to abandon the current pay-for-what-you-use USF tax for a system under which 16 million people would face an increase even though they use little or no long distance,” said Linda Sherry of Consumer Action and co-chair of the Keep USF Fair Coalition.
The universal-service system was set up in the 1930s to bring telecommunications services to high cost areas by using long-distance revenues. Complications arose when the Bell monopoly was broken up in the 1980s, but the system was codified into the Communications Act in 1996. The only change Congress made was to make it possible for all telecom providers to receive funds if they served high-cost areas.
Now with many consumers using mobile phones and Internet telephony to make long-distance calls, less money is going into the system. At the same time, additional providers-mostly wireless carriers that have taken the second-line business from wireline carriers-have begun receiving proceeds from the fund.
The Keep USF Fair Coalition favors the Fair Share Plan, which would assess contributions on all long-distance telecommunications including Voice over Internet Protocol.
Some VoIP providers have argued that since their customers already pay indirectly into the USF through other facilities, they shouldn’t be required to pay again.
