Press Release
MyWireless.org® Consumer Coalition Questions Anti-Consumer Proposal to Cap Universal Service
WASHINGTON, D.C. - The consumer advocacy coalition MyWireless.org expressed strong concerns today over a recent proposal by the Federal-State Joint Board on Universal Service recommending that a cap be placed on support made available from the Fund to competitive eligible telecommunications carriers. This cap would ultimately discriminate against many of the more than 235 million American wireless consumers who pay into the Fund each month -- particularly those who live in rural or underserved areas -- and see no real improvement in wireless service, technology or value by doing so."MyWireless.org is always concerned about the high costs regulations place on America’s 235 million wireless consumers,” said Kimberly Kuo, Executive Director of MyWireless.org. “By their very nature, Universal Service Fund fees are highly discriminatory to wireless consumers because cell phone users pay into the Fund far more than they get out of it each year."
Last month, a bi-partisan group of United States Senators, including many from our nation’s rural and open spaces, wrote letters to the Federal-State Joint Board on Universal Service, and strongly urged them to pursue meaningful, program-wide reforms to the Universal Service Fund (USF). They asked that the Fund be reformed to reflect today’s technological climate, instead of discriminating against certain consumers, such as placing a cap upon wireless carrier support would do.
MyWireless.org supports the Senators’ recommendation that wireless users not be forced to continue to disproportionately subsidize the usage and improvement of traditional landline telephone service, at a time when wireless is clearly becoming Americans’ “service of choice.” Americans today use wireless to stay connected, but also for mobile Internet content, music, gaming, video and more. Wireless users now pay on average over 14 % in monthly taxes, fees and surcharges. MyWireless surveys show that consumers want to prevent more taxes on wireless. They think they pay enough, or too much already.
"We are very concerned that high-cost universal service funding has been used predominantly to subsidize inefficient wireline carriers,” said Kuo. “Too often we see that little of these fees on wireless consumers go for wireless network development, despite additional monthly surcharges that unfairly burden and discriminate against wireless consumers,” Kuo continued. “We also have seen significant waste in how that funding is distributed."
"MyWireless.org would like to work with elected officials to ensure that any funding, much of it taken from the pockets of America's 235 million (and growing) wireless consumers, would instead be used to improve and protect the freedom, value, security and mobility they enjoy with wireless services,” stated Kuo.
MyWireless.org has joined together in a diverse coalition of Texas businesses and consumers to support legislation to repeal the 1.25% TIF fee in the state. To learn more about MyWireless.org or to join the coalition’s efforts to repeal Texas’ Telecommunications Infrastructure Fund fee, please visit www.MyWireless.org/Texas.