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“Explaining
the Increase in the Federal Subscriber Line Charge on Your Telephone
Bill” (Information to assist South Slope Cooperative Members)
“Commonly referred to as the “subscriber
line charge” on your bill, this charge is part of the FCC’s ongoing
effort to promote a competitive framework for the U.S. telecommunications
industry.” This fee is
regulated and capped by the Federal Communications Commission (FCC), not
by state public utility commissions. It is not a tax or a fee charged by
the government. The purpose of the charge is to ensure that all Americans
can afford at least a minimal level of basic telephone service, regardless
of a rural or urban location. 2.
When and how much is the charge increasing? “Effective January 1,
2002: The residential and
single-line business charge-SLC/end user- will increase to $5.00 per line.
The multi-line business and Centrex SLC/end-user cap will increase to
$9.20.”
In its campaign to promote
competition following passage of the Telecommunications Act of 1996, the
FCC is attempting to rebalance telephone rates and charges…by enacting
the Telecom Act; Congress mandated that all consumers, rural and urban,
should be assured of similar access to comparable telecom services at
comparable rates.” The Subscriber Line Charge covers a portion of the
costs of telephone lines connected to your home or place of business.
These regulations require local phone companies to lower their access
charges to long distance phone companies, and recover an increased portion
of the costs of telephone line connections directly from local service
customers.
“Independent local companies, which
includes South Slope Cooperative, remain committed to offering quality
service to their customers and to playing a vital economic role in their
communities. While rural America may be tough to serve, it’s worth it.
After all, we live here too!”
You may write to the following address: FCC Consumer Information Bureau Consumer Information Network Division 445 12th Street, SW Washington,
D.C. 20554 Sources:
Foundation for Rural Service
Federal Communications Commission Consumer Information Bureau 12/27/01
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