The Texas Public Utility Commission unanimously approved a 36.5 p...

current 4.4 percent monthly state universal service fee on phone bills will be cut to 3.4 percent over the four years. The decision will reduce the fund by ending high-cost support in competitive deregulated exchanges of more than 30,000 population and reducing the lines eligible for high-cost support elsewhere. Competitive deregulated exchanges under 30,000 will get support only where necessary to preserve affordable phone service. The order (Case 34723) approved a settlement proposal reached April 8 by the state’s major wireline, cable and wireless providers, state consumer counsel and PUC staff. The AARP criticized the approval, saying there’s no guarantee that consumers will see save any money, since carriers can increase telephone rates to make up for subsidy losses. The PUC launched its review last summer in response to a directive from the 2005 legislature. The major players took very different approaches to revamping the state program, and the PUC directed them to attempt a negotiated settlement. In a related action, the PUC ordered a 40 percent reduction in the phone bill surcharge that supports the California Teleconnect Fund, effective June 1. Under the PUC order, the surcharge will be cut to 0.079 percent monthly from 0.13 percent, to “better align program expenses and revenues.” The fund subsidizes voice and data services for schools, libraries, government-supported health clinics and qualifying community-based organizations.