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More on your forthcoming phone bill increase

The Chron gets on the story.

Texans who use a phone should expect to pay more for that service, thanks to a startling rate increase adopted by the Public Utility Commission of Texas last month.

Commissioners in July voted to increase a longstanding surcharge assessed on telecommunications providers’ receipts for voice services to 24 percent from 3.3 percent. The new rate, which took effect Aug. 1, will add couple of dollars a month for a consumer with a typical individual cell phone plan, and potentially several times that for customers with family plans, or those who pay for calls on a per-minute basis.

“It’s unprecedented,” said Rusty Moore, COO of BBT Telecom, a provider headquartered in Alpine, and board president of the Texas Telephone Association.

[…]

The PUC, in a statement, said the increased fees were imposed on the telecom companies, and they “are not required” to pass on the costs onto residential and business customers. But in practice, telecommunications providers typically choose to do so, the agency explains in a separate Universal Service Fund fact sheet.

T-Mobile, for example, has begun notifying customers that increased fees will show up on their bills starting this month. The exact increase will depend on the customer’s plan.

The change will remain in effect for months, if not longer. Rich Parsons, the agency’s spokesman, said the PUC plans to reduce the fee in about a year as the fund is replenished. But, he added, the rate may not drop back to its previous level of 3.3 percent unless the commissioners vote accordingly.

“It is too soon to know how much the rate will be reduced,” he said.

While the Texas Telephone Association heralded the initial court victory, Moore explained that the PUC’s approach to covering the gap is really not what the organization had in mind, or considers best. In 2021, TTA had backed legislation that would have extended the universal service fee to voice over internet protocol service providers — which allow users to make phone calls over the internet —as well as traditional providers. The bill passed the Texas Legislature with overwhelming support but was vetoed by Gov. Greg Abbott.

It would be better, Moore argued, to have “a much longer glide path” to restoring the funding with more modest rate increases over a longer period..

“This is not what we advocated for in any way, shape, or form,” he said.

Moore’s company, BBT, reckons higher cost residential consumers approximately $4.61 per month, and business customers $6.21.

See here for the background. This story puts some actual numbers on the increase – as noted, how much your bill will go up depends on your carrier and your plan – but just implies the connection to Greg Abbott. At least now this is known to more people. Feel free to help them understand where it came from.

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