‘The need for the $7 billion Universal Service Fund (USF) is less...
“The need for the $7 billion Universal Service Fund (USF) is less now than it was in 1998 when it was $3 billion,” said Thomas Hazlett Fri. The former FCC chief economist, a professor at George Mason U., answered…
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
questions about his views on the telecom industry on a call-in interview on C-SPAN. Hazlett echoed many of the conclusions in his study (CD July 20 p7) ‘Universal Service Telephone Subsidies: What does $7 billion buy?’ Telephone users are paying taxes to fund subsidies that go to inefficient rural telcos, Hazlett said. “These small rural companies,” who are given billions in USF subsidies, “are charging their customers the same rates, and occasionally more for their subsidized services,” said Hazlett. As a result many rural consumers are ditching land-lines for less expensive wireless services, he said.