Phone tax could ring colleges' bell: FCC idea may do number on students By Marie Szaniszlo Boston Herald
Saturday, May 13, 2006 http://news.bostonherald.com/localRegional/view.bg?articleid=139079 A plan to make federal phone taxes a flat fee for every phone number and computer modem could cost the nation's colleges an extra $320 million and prompt some to do away with dormitory phones or raise tuition and fees, opponents say. Under the proposal, the federal Universal Service Fund fee would shift from the current pay-as-you-use percentage of long-distance calls to a flat $1 tax per month on every phone number. Because of the number of lines colleges and universities have, the plan would pose a particular blow, many say, resulting in a net annual increase of at least $320 million in taxes at the nation's 4,325 post-secondary institutions. "The reality is that extra USF costs for colleges and universities would be passed along to students and their families, either in terms of reduced service or higher bills," said Linda Sherry, co-chairwoman of the Keep USF Fair Coalition, a consortium of 115,000 groups opposed to the proposal. If the Federal Communications Commission approves the plan, the average college could see its phone bill soar to $82,999 per year from $8,971, an increase of 892 percent, the coalition estimated. Harvard University's bill for its 6,000 student phones alone would increase $72,000 a year, according to coalition figures. Boston University, which has about 11,000 unrestricted phone lines and some 500 modem lines, would see its bill soar, said Colin Riley, a university spokesman. "A switch would likely increase our current cost 10-fold," Riley said. BU's dormitory phones would not be affected because students are billed directly for their use, Riley said. But he could not predict whether the increase would lead to higher tuition or fees. "We have . . . expressed our opposition through filings to the FCC," Riley said. The FCC says it is considering switching to a flat fee to ensure the stability of the Universal Service Fund, which provides discounts for phone service for low-income consumers, schools and libraries, and rural health-care providers. ================================ George Antunes, Political Science Dept University of Houston; Houston, TX 77204 Voice: 713-743-3923 Fax: 713-743-3927 antunes at uh dot edu Reply with a "Thank you" if you liked this post. _____________________________ MEDIANEWS mailing list medianews@twiar.org To unsubscribe send an email to: [EMAIL PROTECTED]
