Press Releases

FOR IMMEDIATE RELEASE
                       September 13, 2007
CONTACT:
Gena Keller, (512) 474-2082, (512) 350-4778 or gkeller@txcable.com
Kirsten Voinis, (512) 922-7141 or kvoinis@austin.rr.com

PUC OPENS PROCEEDING THAT COULD REDUCE TEXANS’ TELEPHONE TAX

AUSTIN – The Texas Cable & Telecommunications Association (TCTA) anticipates that the proceedings by the Public Utility Commission of Texas to consider reform of a portion of the Texas Universal Service Fund (TUSF) will soon lead to lower telephone bills for Texas individuals and businesses.

“We are confident that the taxpayers of Texas will see relief from burdensome telephone taxes as early as next summer as a result of these proceedings,” said Skip Ogle, chairman of the board of TCTA and director of community and government relations for Suddenlink Communications in Tyler. 

During the proceedings, which opened Monday, the PUC will be determining and potentially revising the monthly per-line support amounts available to qualified telephone providers from the Texas High Cost Universal Service Plan (THCUSP).

The THCUSP, which is a component of the TUSF, is a 4.44 percent tax charged to customers on every phone bill – residential landline, business landline and cellular service.  The original purpose of the fee, established in 1999, was to provide basic local telecommunications services at reasonable rates to customers in high cost rural areas and to qualifying low-income consumers. 

“In the past decade, the market, as well as technology, has changed, yet this fee has not kept up with current times,” Ogle said. “The cable industry believes reform of the fee will allow Texans even in remote areas to have basic phone service while reducing the tax burden borne by individuals and businesses in every part of Texas.” 

The Texas Legislature, as part of SB 5 passed in 2005, directed the PUC to submit a review and evaluation of the fund’s performance and gave the PUC the authority to revise the fund as of Sept. 1, 2007. 

The PUC should issue its findings by June 2008, according to its proposed procedural schedule.

Monday’s filing is attached.   

TCTA (www.txcable.com) is the primary trade organization for cable operators in Texas.
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