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Keyword: cellphonetaxes

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  • Special Report: Cell-phone taxes subsidize land lines, enrich telecoms

    02/04/2007 2:12:15 PM PST · by Tolerance Sucks Rocks · 29 replies · 988+ views
    Washington Times ^ | February 4, 2007 | Bob Porterfield (Associated Press)
    Cellular subscribers are paying hundreds of millions of dollars each year to subsidize land-line telephone service, enriching big telecommunications companies while providing little or no benefit to cell-phone users. The subsidies are intended to reimburse the companies for providing traditional phone service in rough terrain and rural areas where stringing lines can be costly. But rampant development has transformed some of these backwaters into booming subdivisions, with no real adjustment to the distribution formula; others, such as the oceanfront celebrity playground of Malibu, are receiving subsidies simply because of their difficult topography. Outdated formulas for tabulating the surcharges -- coupled...