New Consumer Coalition Launches Campaign to Keep Collection of Universal Service Fund Fair
Consumer, Senior, Disability and Minority Organizations Join Together to Protect Universal Access, Fairness
Today, leading senior, disability, consumer, minority and rural organizations launched a campaign to support the current nondiscriminatory, competitively neutral revenue-based Universal Service Fund (USF) collection system. The Keep Universal Service Fair Coalition opposes proposals to change to an unfair, flat, connections-based system. The Coalition's goal is to make sure the FCC does not alter the way USF fees are collected.
Keep USF Fair believes that the current USF funding mechanism is equitable because it is based on customer usage (minutes used of long distance). The proposed change to a subscriber line or per user fee being considered by the FCC will unfairly discriminate against consumers and low-volume users causing them to pay the same amount in USF fees as high-volume users.
"We view these connection-based proposals as regressive in nature. This kind of proposal hurts the majority of our Hispanic elderly, students and families on fixed-incomes," said League of United Latin American Citizens' director of policy and legislation Gabriela Lemus. "They clearly fail to meet the FCC's criteria of public interest." Hispanics account for 13.5% of the nation's population, but represent 40% of the ethnic telecommunications market. Latino wireless consumer use is growing 10% compared to 6% for the entire U.S. population.
The Keep USF Fair Coalition believes that such a drastic shift in USF funding support would disproportionately hit low-income, residential and low-volume long distance users. If a flat monthly connection charge is adopted, residential customers would pay the same as business customers and low-volume callers would pay the same as high-volume callers. This is NOT fair! The coalition is asking the FCC not to adopt this proposed change due to the detrimental impact it would have on low-volume users.
"The proposal to move to a connection-based fee is a bad deal for seniors," said Will Thomas, project director of the Gray Panthers. "We urge the FCC to reject any methodology which would force low- and fixed-income customers to subsidize price reductions for higher-income customers. Telecommunications links generations. This proposed change could cut those links by severing the lifelines of low- and fixed-income people."
WHICH CONSUMERS WILL BE HIT THE HARDEST BY THE CONNECTION-BASED PROPOSAL?
- Low-Volume Long Distance Users
- Low-Income Consumers on Fixed Incomes
- Residential Consumers with Multiple Phones
- Special Category Consumers Who Utilize Prepaid Wireless Services for: limited use such as emergency or security purposes; children who are away; for elderly parents who may live alone or travel; or seasonal work or study in the U.S.
- Non-Traditional Cell Phone Consumers Who Utilize Prepaid Wireless Services
What is the Universal Service Fund?
The Universal Service Fund was established by the Federal government to subsidize telephone service in low-income communities, as well as rural areas of the country where the cost of providing basic telephone service is high. In 1996, Congress expanded the reach of the Universal Service Fund to provide support for rural health care providers, schools and libraries.
About Keep USF Fair Coalition
The Keep Universal Service Fair Coalition is an alliance of national organizations that supports the current unbiased, competitively neutral revenue-based collection system. Its current members include:
- Alliance for Public Technology
- Alliance for Retired Americans
- American Association of People with Disabilities
- Black Leadership Forum
- Consumer Action
- Deafness Research Foundation
- Gray Panthers
- League of United Latin American Citizens (LULAC)
- National Grange
- National Native American Chamber of Commerce
- Telecommunications Research & Action Center (TRAC)
- World Institute on Disability
Keep USF FAIR Coalition Supporters For more information about the Keep USF Fair Coalition, visit www.keepusffair.org.
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MEDIA CONTACT:
John Breyault, TRAC, johnb@trac.org, 202-263-2943
ABOUT TRAC:
The Telecommunications Research and Action Center (TRAC), founded in 1983, is a non-profit membership organization based in Washington, DC that promotes the interests of residential telecommunications customers. TRAC staff researches telecommunications issues and publishes rate comparisons to help consumers make informed decisions regarding their long distance and local phone service options. TRAC can be found on the web at http://www.trac.org.
