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Residential Phone rates Go up Again

Residential long distance users that have AT&T service will see a 40% increase in the fees they pay to subsidize phone service for the poor. AT&T wanted to increase this amount even more, but the Federal Communications Commission refused to allow it. Sprint raised their rates 18% on Monday, November 1, and MCI announced it has no immediate plans to hike the rate. AT&T is looking into joining Sprint and MCI in charging subsidy rates based upon usage. Consumer advocates are not too happy with this increase. They claim that the increases hit those who don't make many long-distance calls the hardest. But look out for more increases in the "line item fees" in the near future. There are programs slated to subsidize rural phone usage and Internet in public schools. It seems that Long Distance Service has become the new tax target to raise money for whatever cause Congress deems necessary. First it was gasoline, then it was cigarettes, and now it is Long Distance. What will they tax next?

Tue, 16 Nov 1999 13:35:03 -0800