Keep USF Fair Coalition News
To help keep you informed and up-to-date on all of the Universal Service Fund issues in the news, we have provided some clips of recent articles. Take a look at what the media has been saying about this important issue! Often you will see our Coalition gets mentioned...thanks to your help.
"The groups, including the Consumer Federation of California, the California Alliance for Retired Americans, and the Keep Universal Service Fund Fair Coalition, said that California would be the "worst-off loser" state under one of the proposals to restructure the universal service fund being considered by the FCC. Under the proposal, backed by several telephone companies including BellSouth, Corp. and Verizon Communications, Inc., consumers would pay a flat fee per line or connection instead of a fee based on the amount of telephone service they use."
- TR State's NewsWire, "CALIFORNIA -- Consumer groups criticize 'numbers-based' USF funding proposal," September 14, 2006
"Maureen Thompson, directora ejecutiva de The Keep Universal Service Fund Fair Coalition, Washington, D.C., observó: "El plan de las grandes empresas telefónicas respecto al Universal Service Fund no es una buena cosa para el consumidor porque empeoraría significativamente las desigualdades de quién paga la cuenta de USF y quién cosecha los beneficios del Fondo. Los datos de California señalan que, en la industria, nadie ha dedicado tiempo para explorar qué implicaciones tendría para el consumidor cambiar el esquema de los fondos de USF. Es cada vez más obvio que ellos no han sido abiertos respecto a esta información porque la realidad es que pintan un cuadro muy condenatorio, que busca pasar a una metodología de "números" o de fondos basados en la línea telefónica. Es importante también asegurarse de que se supriman los extensos desperdicios y las grandes ineficiencias de USF a fin de que el dinero gastado llegue realmente a quienes lo necesitan."
- Agencia Mexicana de Noticias, "Advertencia a los Latinos de California: LULAC y Otros Grupos se Oponen al Aumento de $600 Millones en la Cuenta Telefónica," September 14, 2006
"A warning today for Latinos, seniors and other consumers in California: You stand to be the biggest losers in the United States under a widely criticized plan to shift the burden of who pays the federal "Universal Service Fund" (USF) tax on long-distance phone bills. A proposal backed by America?s biggest telephone companies could saddle California with a $582.43 million annual tax hike, according to the urgent warning from the California League of United Latin American Citizens (LULAC), the Consumer Federation of California, and the California Alliance for Retired Americans."
- HispanicTips, "Warning to California Latinos: $600 Million Phone Bill Hike Opposed by LULAC, Other Groups," September 14, 2006
"According to research from the Keep USF Fair Coalition, senior, Latino, low-income and rural consumers in California and elsewhere would pay the most in additional USF taxes under the controversial per-connection approach. For California, the change in USF to a per-connection tax would mean an increase in taxes of $184 million per year at the rate of $1 per connection or, as would be more likely, $582 million at the rate of $1.50 per connection. Californians currently pay $613.11 million in USF taxes and get back only $575.75 million in USF expenditures. Under the $1.50 per-connection tax switch for USF the California "deficit" would soar from the current $37.35 million to $582.43 million."
- YubaNet.com, "Warning to California Consumers: Nearly $600 Million Federal Phone Bill Tax Hike for State Now Being Pushed by Phone Companies," September 14, 2006
" The average college and university, for example, would see its service fund fees zoom to $82,999 per year from the current $8,971 because of the large number of direct lines involved.
Talk about a budget buster.
That estimate comes from the growing number of organizations opposing the change, the Keep USF Fair Coalition. "
- MySA.com, "David Hendricks: Phone-service fee does the job -- leave it alone," August 8, 2006
"Texas phone companies, like AT&T and Bellsouth, are pushing a proposal to eliminate charges for "per connection long distance calls", and go to a flat rate fee instead. The taxes tied to long distance calls, called the Universal Service Fund, would also be assessed at a flat rate. Here's the catch, you'd pay that long distance tax even if you don't make long distance calls on your land line phone."
- VMS News, "North American Markets," August 3, 2006
"A proposal to fund telecommunications subsidies with a flat fee would disproportionately affect poor people, seniors, rural
consumers and Latinos, a trio of groups argued at a Thursday press conference. The Keep Universal Service Fund Fair
Coalition, Texas Consumer Association and Texas Migrant Council said the universal service fund instead should continue to be
based on money collected from a fee on long-distance telephone service. Leaders from the groups also said the flat-fee plan
would place the highest burden on California and Texas."
- Technology Daily, "TELECOM," August 3, 2006
" FCC Chairman Kevin Martin wants to scrap the current funding system, which taxes phone users on their amount of long-distance calling. Martin has instead proposed a flat monthly fee of $1 to $1.50 on every phone number, both land-line and cellular.
The move, consumer groups said during a Thursday conference call, would shift the burden to low-income phone users and away from people who make a lot of long-distance calls. "
- MySA.com, "Consumer group says phone tax change would hurt low-income Texans," August 3, 2006
"But if you are under the age of 25, you may very well have four, five ? or even more ? ?connections:? a home phone, one or more cell phones, an IM or Blackberry-style device, a broadband data connection and maybe even a separate line for online video gaming and/or a digital video recorder (DVR). That is why the Keep Universal Service Fund (USF) Fair Coalition is warning today that younger adults are among those who would fare the worst under a controversial plan now under discussion in Washington, D.C., to shift the Universal Service Fund tax on phone bills.
Under the proposed change, the USF tax would shift from the current percentage of actual long-distance calls to a flat, monthly tax of $1-$2 on all connections ? including non-voice data lines ? regardless of whether the connections are used for any long-distance calls. To show the potential cost to young adults of changing the USF funding formula, the Keep USF Fair Coalition is launching http://www.phonetaxcalculator.com, which allows young adults to estimate their current USF tax burden and how much it would go up under the widely criticized per-connection approach."
- Los Angeles Journal, " CELL TOLL FOR THE UNDER 30," June 29, 2006
"If you are over the age of 45, you have a home phone and possibly a cell phone. But if you are under the age of 25, you may very well have four, five or even more connections: a home phone, one or more cell phones, an IM or Blackberry-style device, a broadband data connection and maybe even a separate line for online video gaming and/or a digital video recorder (DVR). That is why the Keep Universal Service Fund (USF) Fair Coalition is warning today that younger adults are among those who would fare the worst under a controversial plan now under discussion in Washington, D.C., to shift the Universal Service Fund tax on phone bills.
Under the proposed change, the USF tax would shift from the current percentage of actual long-distance calls to a flat, monthly tax of $1-$2 on all connections including non-voice data lines regardless of whether the connections are used for any long-distance calls. To show the potential cost to young adults of changing the USF funding formula, the Keep USF Fair Coalition is launching http://www.phonetaxcalculator.com, which allows young adults to estimate their current USF tax burden and how much it would go up under the widely criticized per-connection approach."
- LegitReviews, "Young Adults To Be Hurt By Federal USF Phone Tax Changes," June 29, 2006
"People under 25 would be hit hard if the FCC adopted a system based on phone numbers or "connections" to fund universal service, the Keep USF Fair Coalition warned Tues. The coalition, made up of consumer groups, said younger people tend to have more communications devices, each with a phone number or telephone line. The group, a long-time foe of the proposal, has issued similar warnings about the impact on the elderly and the poor of basing Universal Service Fund (USF) contributions on numbers. The current system is based on interstate revenues."
- Communications Daily, "Telecom Notes," June 28, 2006
"According to the Keep Universal Service Fund (USF) Fair Coalition, most young adults have at least four communications outlets, among them a home phone, one or more cellphones, an IM or BlackBerry-style device, a broadband data connection and maybe even a separate line for online video gaming and/or a digital video recorder. The Coalition says, "Congress and the Federal Communications Commission are considering changing the fair 'pay-for-what-you- use' system to a 'monthly flat fee.' This flat-fee plan would hurt millions of consumers - including many young adults just like you. Under the proposed change, even if you make no long-distance calls, you still have to pay a fee."
Under the proposed change, the Coalition says the USF tax would shift from the current percentage of actual long-distance calls to a flat, monthly tax of between $1 and $2 on all connections - including non-voice data lines - regardless of whether the connections are used for any sort of long-distance calling. As such, the Coalition has launched a Web site aimed at showing the younger generation how much their bills could increase and then encouraging them to write their congressmen regarding any increased fees."
- Telecomweb Newsbreak, "USF Changes: The More You Play, The More You Pay?
," June 27, 2006
"According to the Keep Universal Service Fund (USF) Fair Coalition, most young adults have at least four communications outlets, among them a home phone, one or more cellphones, an IM or BlackBerry-style device, a broadband data connection and maybe even a separate line for online video gaming and/or a digital video recorder. The Coalition says, "Congress and the Federal Communications Commission are considering changing the fair 'pay-for-what-you- use' system to a 'monthly flat fee.' This flat-fee plan would hurt millions of consumers - including many young adults just like you. Under the proposed change, even if you make no long-distance calls, you still have to pay a fee."
- Telecomweb Newsbreak, "USF Changes: The More You Play, The More You Pay?," June 27, 2006
"The U.S. Treasury has abandoned efforts to keep alive the ancient federal telephone tax....[A]t the same time, the FCC has announced a plan to expand the so-called Universal Service Fund (USF), ostensibly created to fund telecommunications services to needy customers like schools, libraries and rural areas, to cover voice-over-Internet (VoIP) services, and to increase collections from wireless services."
- Forbes, "Which Way Is Up," June 9, 2006
"[FCC Chairman Kevin] Martin has long favored changing the way USF contributions are assessed. Martin and CTIA favor an approach that would assess the fee based on the number of telephone numbers each carrier controls. Other groups, like the Keep USF Fair Coalition, oppose this proposal....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."
- RCR Wireless News, "FCC mulls option to increase amount wireless pays to USF," June 5, 2006
"A switch to a purely numbers-based Universal Service Fund contributions system would result in a 10-fold increase in assessments on average for colleges and universities and could not be made up solely through increased tuition and fees, a white paper drafted by two higher education groups and submitted to the FCC states."
- Telecommunications Reports, "Report: Numbers-Based USF System Toughest on Colleges," June 1, 2006
"Internet phone users and some wireless customers may see their bills increase this year, under a proposal by Federal Communications Commission Chairman Kevin Martin to shore up a fund that subsidizes phone service for low-income and rural consumers. Under the plan, Internet phone companies would be required for the first time to pay directly into the Universal Service Fund....Phone companies preferred a proposal floated by Mr. Martin to charge a fee per phone number on all customers instead of tweaking the current system. That plan stalled under criticism by special-interest groups, including the National Education Association and the American Association of People with Disabilities, which say it would unfairly place more of a burden on low-income consumers."
- The Wall Street Journal, "FCC Weighs Internet Phone Charge," June 1, 2006
"The FCC is poised to require VoIP providers to pay into the Universal Service Fund (USF)....Kevin Martin began to circulate a USF item last week, timed for the June 15 agenda meeting...."
- Telecom A.M., "FCC Ready to Mandate VoIP Customers Pay into USF Fund," May 31, 2006
"[T]he Federal Communications Commission (FCC) is mulling a change to a flat-fee, numbers-based system that would charge everyone who owns a phone number a single monthly fee....A group called Keep USF Fair has said that the shift to a flat fee would 'impose a steep financial burden on millions of seniors and low-income phone users.'"
- E-Commerce Times, "Universal Service Fund Changes Mulled Amid Evolving Telecom Landscape," May 31, 2006
"As e-mail, Internet telephony and cheaper long-distance charges lower phone costs for consumers and businesses, the FCC is re-examining how it funds the ever-growing multibillion-dollar program aimed at insuring all Americans have equal access to telecommunications services....What has some consumer advocates especially concerned is [FCC Chairman] Martin's plan to impose a $1 to $2 monthly flat fee on every telephone number in the country....'The concern ... is that Aunt Betty who uses little or no long-distance service is going to pay the same amount that Bill Gates pays. It's just not fair,' said Maureen Thompson, of the Keep USF Fair Coalition, which includes advocates for consumers, the poor, minorities and educators. The coalition also fears the plan would hurt colleges and universities...."
- The Star-Ledger, "FCC considers fee to bolster flagging long-distance taxes," May 31, 2006
"Colleges can expect to see fees for telephone and Internet service rise sharply if the Federal Communications Commission goes ahead with a plan to revamp its Universal Service Fund, according to a report released last week....The report, 'Flunking Numbers,' was completed by the Keep USF Fair Coalition, an organization of national advocacy groups opposed to the tax plan....Much of the criticism of the proposal has focused on how it could hurt senior citizens and low-income families. But Linda Sherry, the coalition's co-chair, said colleges, too, have a lot to lose if Mr. Martin gets his way."
- The Chronicle of Higher Education (print edition), "Colleges Fear Sharp Rise in Cost of Telephone and Internet Service," May 26, 2006
"This weekend the Boston Herald reports on a proposed change to federal telephone taxes being considered by the Federal Communications Commission that could lead to a steep tax increase on the housing facilities of the nation's colleges and universities....A plan to make federal phone taxes a flat fee for every phone number and computer modem could cost the nation’s colleges an extra $320 million and prompt some to do away with dormitory phones or raise tuition and fees, opponents say."
- Tax Foundation/Tax Policy Blog, "Proposed Change in Federal Phone Tax May Hurt Universities," May 15, 2006
"U.S. colleges and universities last week added their cost worries to the list of groups concerned about potential changes in universal service fund (USF) contribution methods, especially the often-discussed flat-fee telephone-numbers approach that could replace the current system based on long-distance revenues. In a report conducted under the auspices of the Keep USF Fair Coalition...the higher-education establishment says more than 4,000 such American institutions could see USF bills rise by between 1,000 percent and 1,500 percent....The Coalition, which also has offered segmented outlooks for states, senior citizens, low-income residents and Hispanics, says 'Flunking Numbers' draws on data collected by the American Council on Education (ACE) in its review of current USF payments and potential USF tax hikes for a representative cross-section of 15 U.S. colleges and institutions of all sizes, both public and private."
- Telecom Policy Report, "Colleges, Universities Flunk Numbers-Based Universal Service Fund Alternatives," May 15, 2006
"A plan to make federal phone taxes a flat fee for every phone number and computer modem could cost the nation’s colleges an extra $320 million and prompt some to do away with dormitory phones or raise tuition and fees, opponents say....'The reality is that extra USF costs for colleges and universities would be passed along to students and their families, either in terms of reduced service or higher bills,' said Linda Sherry, co-chairwoman of the Keep USF Fair Coalition, a consortium of 115,000 groups opposed to the proposal....If the Federal Communications Commission approves the plan, the average college could see its phone bill soar to $82,999 per year from $8,971, an increase of 892 percent, the coalition estimated."
- Boston Herald, "Phone tax could ring colleges’ bell: FCC idea may do number on students," May 13, 2006
"A group called the Keep USF Fair Coalition...issued a report yesterday highlighting the steep price the academic community would pay if the FCC moves forward with its proposed flat-fee charge for the Universal Service Fund on all phone numbers....Sherry said colleges and universities are particularly vulnerable to a connections-based methodology for USF because of the significant number of phone numbers they require and how those and other connections are used to help students learn....'We think it is turning the clock back by imposing tremendous costs on people and institutions. We think it’s unfair, and we don’t feel the democratic process is working very well in this process,' she said."
- Free Press, "Academics say FCC flunking on USF," May 12, 2006 (from Telephony Online)
"U.S. colleges could see a 'staggering annual increase' in phone fees if the FCC moves to a numbers or connections system for collecting Universal Service Fund contributions, the Keep USF Fair Coalition said Thurs. The group -- which has conducted a long-running campaign against the numbers approach proposed by FCC Chmn. Martin -- said colleges could see an increase of as much as $480 million, which could translate to phone service cuts and higher tuition. The coalition said a study shows that colleges could see their USF fees rise to an average of $82,999 from $8,971 now. The fees, paid by telecom carriers, usually are passed on to customers. Under a numbers approach, carriers would contribute to the USF by paying a per-phone number fee, probably around $1, rather than making contributions based on a percentage of revenue, as in the current system."
- Telecom A.M., "Colleges Could Face Big Increases in Phone Fees under Number- based USF," May 12, 2006
"A group called the Keep USF Fair Coalition...issued a report yesterday highlighting the steep price the academic community would pay if the FCC moves forward with its proposed flat-fee charge for the Universal Service Fund on all phone numbers....Sherry said colleges and universities are particularly vulnerable to a connections-based methodology for USF because of the significant number of phone numbers they require and how those and other connections are used to help students learn....'We think it is turning the clock back by imposing tremendous costs on people and institutions. We think it’s unfair, and we don’t feel the democratic process is working very well in this process,' she said....Asked what solutions the coalition would offer, Sherry said, 'Certainly we would like things to remain exactly as they are with the USF selection methodology which is based on a percentage of the long-distance usage you use. Short of that, we would like to see a fall-back plan that has some protection built in for people and institutions that would be negatively impacted by this change.'"
- Telephony, "Academics say FCC flunking on USF," May 12, 2006
"Currently the commission's Universal Service Fund requires telecommunications providers to pay taxes based on how many long-distance calls users make. But a new plan -- backed by Kevin Martin, the commission's chairman -- would require the providers to pay a flat rate of $1 or $1.50 for every phone line and Web access point they maintain....That plan would be prohibitively expensive for many colleges, said Linda Sherry, co-chair of the Keep USF Fair Coalition, during a conference call today. The coalition used the call to announce the release of a new report, 'Flunking Numbers,' which argues that the average college would see its Universal Service bill shoot up by almost 900 percent if the flat rate takes effect....Ms. Sherry said that colleges also have a lot to lose if Mr. Martin, the commission's chairman, gets his way. 'The plain reality is that the extra USF cost for colleges and universities would be passed along to students and their families, either in the form of reduced services or higher bills,' she said."
- The Chronicle of Higher Education, "In Defense of Long-Distance," May 11, 2006
"U.S. colleges could see a 'staggering annual increase' in phone fees if the FCC moves to a numbers or connections system for collecting universal service fund contributions, the Keep USF Fair Coalition said Thurs. The group -- which has conducted a long-running campaign against the numbers approach proposed by FCC Chmn. Martin -- said colleges could see an increase of as much as $480 million, which could translate to phone service cuts and higher tuition. The coalition said a study shows that colleges could see their USF fees rise to an average of $82,999 from $8,971 now. The fees, paid by telecom carriers, usually are passed on to customers. Under a numbers approach, carriers would contribute to the USF by paying a per-phone number fee, probably around $1, rather than making contributions based on a percentage of revenue, as in the current system."
- Communications Daily, May 11, 2006
"America's higher education institutions would face millions of dollars in increased phone taxes if the FCC approves a proposed change to the universal service fund, according to a report released Thursday by the Keep USF Fair Coalition. The coalition's 'Flunking Numbers' study finds that post-secondary institutions would be forced to pay a net annual increase in federal universal service fund taxes of $320 million to $480 million if the fund is changed to a flat fee of $1 or $1.50 per phone number, Web-access line or other connections. The coalition consists of public-interest groups that represent Americans with disabilities, retirees, Latinos, blacks, rural groups and others. The universal service fund aims to help deliver communications services to all Americans."
- National Journal Technology Daily, "Taxes," May 11, 2006
"The group’s study found that the average U.S. college and university would see its Universal Service Fund phone contribution rise from $8,971 per year to $82,999, an increase of nearly 900%. With some schools facing hikes up to 3000%, colleges and universities would be forced to respond with tuition hikes or cuts in programs. Some might even choose to eliminate college dorm telephones, the reported stated."
- Telecommunications Report Daily, "USF Coalition Says Students would Suffer from Per-line Mechanism," May 11, 2006
"The fee would violate the law's requirement that universal-service contributions be 'equitable and nondiscriminatory' and halt the broader rollout of telematics-based safety and security to mass-market vehicles. A wide disparity between users means that each cannot be assessed the same fee. ... The proposed phone-number assessment structure does not comprehend that while automotive telematics is assigned a large number of phone numbers, the extent and frequency of use of the network is extremely confined."
- RCR Wireless News, "ATX warns FCC that number-based USF financing will not survive court challenge," April 21, 2006
"PHONE FIGHT: FCC Chairman Martin faces resistance to overhaul of Universal Service Fund, which subsidizes phone services for poor and rural areas. NAACP and Gray Panthers slam his flat-fee-per-phone-number idea, citing burden on those making few long-distance calls. At Senate hearing, seniors' group AARP asks: 'Is it fair for Bill Gates and Aunt Edna ... [to] pay the same amount?'"
- Wall Street Journal, "Washington Wire," March 3, 2006
"A proposal by the Federal Communications Commission to change the way it collects money for its Universal Service Fund would cost New Yorkers nearly $60 million a year in new taxes, says a coalition of consumer, business and special-interest groups ... The FCC is considering changes to the way it raises money for the USF, including possibly charging telephone companies by the number of phone lines they operate. Like the current variable charge, the flat-tax cost would be passed on to customers by the companies. A nonprofit lobbying group in Arlington, Va., called Keep USF Fair Coalition, says the proposal would be wrong, especially for senior citizens who limit their use of long distance to save money because they are on fixed budgets."
- Albany Times Union, "FCC tax proposal faces criticism, Coalition claims plan would cost New Yorkers $60 million more a year," April 1, 2006
"From a news release by The Seniors Coalition, we learn that grandma and grandpa aren't hep to the idea of a new telephone tax shift: Half of all older Americans - including 62 percent of the poorest seniors with annual income of $25,000 a year or less - would have to cut back on long-distance phone calls if their 'phone bill was raised by $1 to $2 every month in higher federal phone fees,' according to an Opinion Research Corporation (ORC) survey conducted for The Seniors Coalition (TSC). Such a $1-$2 per line phone charge is contemplated under a controversial plan put forward by Federal Communications Commission (FCC) Chairman Kevin Martin to significantly shift the burden of paying for the federal Universal Service Fund (USF) phone bill tax to low-income seniors and other vulnerable consumers."
- Washington Times, "Telecom taxes (again) ...," April 4, 2006
"Seventy-year-old Victor Kelley of Monroeville, Pa., says that among the various 'mysterious charges' that appear on his telephone bill is the 'creeping' Universal Service Fund charge. 'I just don't know anymore how legitimate these charges are,' he says. 'But scam artist companies do, and they are also aware of the vulnerability of senior citizens throwing up their hands in the despair of figuring them out anyhow.' Not only senior citizens, Victor ... The Federal Communications Commission imposes the fee on telecommunications companies, which pass it on to customers as a percentage of their charges. But the FCC is considering changing the USF to a per-line flat fee. Good or bad? A report by the Keep USF Fair coalition in November concluded that the plan would result in higher federal phone taxes or phone-bill increases for 43 million low-volume, long-distance user households -- particularly the most vulnerable of Americans, such as low-income and elderly individuals."
- Washington Post "Good Numbers, Bad Names," February 19, 2006
"La propuesta lanzada hace unos meses por el presidente de la Comisión Federal de Comunicaciones (FCC), Kevin Martin, para incrementar los impuestos que van destinados al llamado Fondo de Servicio Universal continúa generando preocupación entre los defensores de los derechos de los consumidores. Hasta el momento, más de 600 mil usuarios han hecho llegar a la FCC —por medio de la Coalición Keep US Fair— su desacuerdo sobre el plan que pretende aumentar de manera fija entre uno y dos dólares las facturas telefónicas de quienes hacen llamadas a larga distancia, en lugar de basarse en el uso de la línea como hasta ahora. En la actualidad, las compañías de telecomunicaciones, incluyendo las que ofrecen servicios celulares y ubicadores (pagers), son las únicas que por normativa federal deben contribuir con sus ganancias a este fondo. Sin embargo, la medida que se estudia en la FCC dispone ampliar ese cargo también a los usuarios, aunque al mes realicen pocas llamadas al extranjero o a otros estados."
- La Opinion, "Preocupa posible aumento de impuesto telefónico, Quienes usan el servicio prepagado serían los más afectados, dicen," 10 de febrero de 2006
"Consumers in 12 states would be hardest hit by a proposal before the FCC to move to a numbers-based system for contributing to the Universal Service Fund, the Keep USF Fair Coalition said Thurs. The coalition said consumer bills would go up the most in Cal., Fla., Ill., Md., Mass., Mich., Minn., N.Y., Pa., Tex. and Va. In all of those states except Tex. and Minn. 'Consumers already pay more in federal USF taxes than their states get back for schools, hospitals and rural connectivity and that disparity would grow even wider' under the plan supported by FCC Chmn. Martin, the group said."
- Communications Daily, March 31, 2006
"The concerns of FCC Chairman Kevin Martin about how technology changes are impacting telecommunications company contributions to a fund designed to ensure ubiquitous access to telephone service are overblown, a public-interest coalition said Monday. 'The facts suggest that the case for a change so radical as shifting universal service funding to a numbers-based formula is the telecommunications equivalent of 'weapons of mass destruction in Iraq,' said Maureen Thompson, executive director of the Keep Universal Service Fund Fair Coalition. ... The coalition consists of public-interest groups that represent Americans with disabilities, retirees, Latinos, blacks, rural groups and others.
- National Journal Technology Daily, "COALITION CALLS WORRIES ABOUT PHONE FUND OVERBLOWN," February 27, 2006
"A consumer group is urging Congress to be wary of a proposal to change the Universal Service Fund long-distance charge to a flat per-line charge ... The group Keep Universal Service Fund Fair Coalition told reporters Monday that the flat-rate plan would raise phone taxes for about 43 million mostly low-income and rural consumers by some $700 million and is the result of a 'phony crisis' allegedly manufactured by Federal Communications Commission Chairman Kevin Martin ... The coalition contends there is no 'crisis' and no evidence that the USF levy is either unfair or rising rapidly."
- United Press International, "Consumer group urges preserving phone tax," February 28, 2006
"The Keep USF Fair Coalition today said that millions of U.S. Latinos will be pinched financially if the Universal Service Fund contribution mechanism is changed to a numbers-based system because they on average make few long distance calls and disproportionately use prepaid wireless service. The coalition said those of Hispanic descent could be forced to pay up to $383 million more in USF contributions, which would hurt many low-income households. The group asked that the FCC take a closer look at how a numbers-based plan would effect the poor."
- Telecommunications Report Daily, "COALITION SAYS NUMBERS-BASED USF FEE WOULD HURT LATINOS, February 9, 2006
"A coalition of consumer groups is opposing possible changes to the federal Universal Service Fund, which subsidizes phone service for low-income consumers and people in rural areas. The Keep Universal Service Fund Fair Coalition (www.keepusffair.org) believes that changing the way the fund is paid for -- from a percentage of long-distance usage to a flat per line charge of $1 to $2 or more -- would unfairly hurt an estimated 16 million low-income Americans, primarily the elderly. 'We don't want USF financing to balance on the backs of the very consumers who use long distance the least,' Linda Sherry, director at Consumer Action and a coalition member, said at a news conference in Washington, D.C., yesterday."
- Pittsburgh Post-Gazette, "Coalition fights changes to low-income phone fund," November 18, 2005
"Proposed changes to federal telephone taxes could impose a steep financial burden on millions of older adults and low-income phone users, a new study has found. According to the report, issued Thursday by the Keep Universal Service Fund Fair Coalition, the FCC is considering a shift from the current 'pay-for-what-you-use' system to a monthly flat-fee of $1 or $2, or more, per phone line."
- Milwaukee Journal-Sentinel, Phone tax would burden seniors, poor, study says, November 18, 2005
"A coalition of consumer groups is trying to block a plan to revamp the Universal Service Fund, which this year will provide about $ 6.5 billion to subsidize phone service for low-income and rural residents as well as discount Internet access for schools and libraries ... The groups opposing the change say the change could hurt some of the same people the fund is supposed to help. At a Washington news conference yesterday, the coalition released a study estimating that a $ 1 to $ 2 charge could add $ 350 million to $ 700 million a year in costs borne by the 4 in 10 U.S. households that rarely or never make long-distance calls."
- Philadelphia Inquirer, "Consumer groups aim to block revamp of federal service fund," November 18, 2005
"A proposal being considered by the U.S. Federal Communications Commission (FCC) to rework funding for a program that provides telecommunication services to rural and poor areas includes a 'regressive' tax that would harm low-income U.S. residents, a coalition of consumer advocates said Thursday ... While an extra $2 a month may not sound like a lot of money to some telephone customers, it's an extra expense for people on fixed incomes, said Juanita Brown, a disabled nurse from Lookout, West Virginia. Brown's family, including her disabled husband and two children still at home, survives on Social Security disability payments of $486 a month, she said. 'If it goes up anymore, I can't afford my phone,' Brown said. 'If you're one of the lucky ones, God bless you ... but don't forget about the rest here in the real world. On our income, we can barely afford the taxes and fees on our phone service as it is.'
- IDG/InfoWorld, "Consumer groups question flat-rate telecom tax proposal; Keep Universal Service Fund Fair Coalition says tax is regressive," November 17, 2005
"The U.S. Congress and the Federal Communications Commission are getting an earful from consumer and citizen advocacy groups that want them to more publicly air potential plans for changing the methods of collecting and disbursing universal service fund (USF) subsidiary money, based on their concerns that users may see substantial increases in USF-related fees on telephone bills. Leaders of the Keep USF Fair Coalition, which claims to have support from about 20 other organizations and more than 108,000 individual members as well as Consumer Action and the Seniors Coalition in part singled out FCC Chairman Kevin J. Martin for periodically promoting a telephone number-based, flat-fee approach on USF collections to gatherings of industry groups only, without any formal proposal being made or an open-comment process being started ..."
- TelecomWeb, "Consumer Groups Demand USF 'Stealth Tax' Hearing," November 17, 2005
"As the FCC considers reformation of the Universal Service Fund, Congress has its own ideas for change. Meanwhile, the Keep USF Fair Coalition is taking sides against the FCC and Chairman Kevin Martin's support of a numbers-based system, and professing ideas more in line with a newly proposed House bill ... The Keep Universal Service Fund Fair Coalition says the numbers system would result in higher federal phone taxes of as much as $707 million for 43 million low-volume long-distance user households in the United States. Its members – including the Alliance For Retired Americans, the American Association Of People With Disabilities and the Black Leadership Forum – especially are concerned about low-income and elderly people on fixed incomes having to pay higher phone bills."
- Phone+ magazine, "Efforts to Reform USF Gain Momentum, Incite Controversy," November 17, 2005
"The Keep Universal Service Fund Fair Coalition today hammered FCC Chairman Kevin's Martin's proposal to base USF contributions on a per-number basis. Though it is not an official proposal, Martin said in a keynote at the Telecom 05 show earlier this month that he favors moving to a system where any service that requires a phone number would be forced to contribute to the fund. However, that method would unfairly impact seniors and low-income users who make little or no long-distance calls, according to the Coalition. In a study on the impact of such a system, the group said per-number charges would result in higher federal taxes of as much as $707 million for 43 million households."
- Telephony magazine, "Coalition blasts per-number USF plan," November 17, 2005
"A coalition on Thursday criticized a plan by Federal Communications Commission Chairman Kevin Martin to reform how certain phone taxes are collected, alleging the proposal could result in up to $707 million in additional charges for 43 million households. The Keep Universal Service Fund Fair Coalition, which represents the Alliance For Retired Americans, Consumer Action, Gray Panthers and the Seniors Coalition among other groups, claims that Martin's tentative desire to fund phone subsidies through a flat fee per phone line would burden senior citizens and others who make few long-distance calls. The coalition estimates 16 million homes that use no long distance in a typical month could pay $192 million to about $383 million in additional phone charges if the FCC assessed a $1 to $2 charge per phone line to support the Universal Service Fund (USF)."
- VoIP Business Weekly, "Coalition: USF Plan would Unfairly Tax Millions of Homes," November 17, 2005
"Proposed changes to federal telephone taxes could impose a steep financial burden on millions of seniors and low-income phone users, a study released Thursday found. According to the report, issued by the Keep Universal Service Fund Fair Coalition, the FCC is considering a shift from the current 'pay-for-what-you-use' system to a monthly flat-fee of $1 or $2, or more, per phone line ... The report also shows FCC Chairman Kevin Martin's proposed flat fee could also cost the 43 million Americans who spend less than 10 minutes a month dialing long-distance up to $707 million annually ..."
- "Study: FCC fees could hit the old, poor the hardest," The Miami Herald, November 18, 2005
|
