June 10, 2009
MyWireless.org® Calls on Wisconsin Legislature to Reject a 32% Wireless Fee Increase Included in the Proposed State Budget
WASHINGTON, D.C. – National wireless consumer advocacy organization MyWireless.org today called on lawmakers in Madison to reject new fees on wireless service in the proposed annual budget being considered this week. Wisconsin’s more than 4 million wireless consumers currently pay more than 11% on average in combined monthly wireless taxes, fees and surcharges.
If the proposed state budget passes, all cell phone users in the state would pay a new $.56 fee to fund the state Universal Service Fund (USF), a fund that does not expand or improve wireless service. The state USF funds currently collected from Wisconsin’s consumers are not being used for their original intended purpose, which was to pay for enhancing consumer telecommunications systems in rural and underserved areas.
This new USF hike would be on top of a blatant disregard to a promise made previously to wireless consumers by the state, as an old E9-1-1 fee that had a $20 million surplus – and that was supposed to be refunded to Wisconsin consumers in $5.00 increments – will in fact not be refunded. Instead, that money was diverted by the state to be used for general revenue purposes. Worse yet, the leadership in Madison has also proposed a new $.75 fee on all phone service users (BOTH landline and wireless) in the state to pay for so-called “police and fire protection services,” which could also simply be used to fill a revenue hole in the general budget. These new fees would add $1.31 per month on wireless phone bills and cost wireless consumers more than $60 million a year. For a family of four, for example, with a wireless family plan and landlines at home, these new fees could cost them approximately $100 a year.
Brian Johnston, Director of Communications and Federal Advocacy for MyWireless.org, said “More than 4 million Wisconsin wireless consumers, their families and their businesses truly deserve a break from excessive taxes on an invaluable mobile tool for daily communication. Particularly in these challenging economic times, Wisconsinite wireless consumers and their families are already stretched to their limits. So why then would state legislators in Madison approve two new cell phone fees on the backs of consumers that would do nothing to actually improve the state’s wireless service?
“Wisconsinite cell phone users are being asked once again to bear more than their fair share, with an excessive 32% total combined increase in new fees on their monthly bills. Wireless is overwhelmingly the service of choice for Wisconsin to stay connected on a daily basis, but also as a lifeline in case of emergency,” said Johnston. “Now is not the time to take advantage of Americans’ dependence on wireless, by allowing states to slap consumers with even higher taxes & fees. Wisconsin should be seeking to eliminate regressive taxes on communication services at this time, in order to relieve consumers of excessive tax burdens rather than expanding bad policy to wireless services.”