VZ Gets a Gift, We Get the Bill: USF Goes Up!

Verizon gets forbearance on Docket 04-440 on March 20, 2006 and the consumers get an increase on USF from 10.2% to 10.9%. This is the notice from VZ:

Effective April 1, 2006, the Federal Universal Service Fund (FUSF) surcharge will increase from 10.2 percent per month to 10.9 percent. FUSF helps maintain affordable local telephone service for all customers, and also provides discounted service to schools, public libraries and low-income customers. This charge is reviewed quarterly by the FCC and does not result in any new revenue to Verizon.

Not directly, but who do you think is on the receiving end of much of the E-Rate monies? The BOCs. A good percentage of USF goes to rural areas like Alaska to keep the cost of local service from being $200 per month.