Categories: OLD Media Moves

Reporter ignores existing taxes on telecom

CNN’s Allen Wastler recently reported a story that concluded that there needed to be more regulation on telecommunications communications, but he ignored the fact that there already exists high taxes due to regulation, noted Business & Media Institute’s Ken Shepherd.

Shepherd wrote, “Nowhere in his story did the CNN/Money.com editor mention the high cost government already imposes on phone customers with taxes and fees, or that the FCC voted recently to expand the reach of the ‘universal service fee’ to voice-over-Internet and cell phone customers.

“Wastler said that ‘once upon a time’ the government required a ‘universal service fee’ of DSL providers to finance rural telephone service that phone companies were reluctant to provide, but that the government stopped requiring the charge for DSL subscribers. That’s misleading.

“According to the FCC Web site, ‘all telecommunications companies that provide interstate telecommunications service contribute to the Universal Service Fund.’ While the FCC ‘does not require companies to recover their Universal Service contributions from their customer,’ ‘Each company makes a business decision about whether and how to assess charges to recover its Universal Service costs.’

“So what’s the problem? Well, Wastler complained that in lieu of a ‘universal service fee,’ Verizon is charging customers like him $2.70 a month in a ‘supplier surcharge fee’ at a ’13-cent savings’ over the universal service fee that was previously imposed. Wastler also savaged BellSouth (NYSE: BLS) for levying a ‘regulatory recovery fee because they have to deal with so many regulations.’

“A frustrated Wastler then exploded: ‘They should deal with more as far as I’m thinking.’ ‘I got a brief glimpse of hope from down South,’ he added, noting that ‘a federal court in Atlanta’ ruled that states ‘can regulate telecoms for all those little extra charges and the fine print and stuff.'”

Read more here.

Recent Posts

Indianapolis Biz Journal seeks a news editor

The Indianapolis Business Journal is looking for our next news editor, a role that focuses…

11 hours ago

Axios hires Berkowitz as ME for media and markets coverage

Axios has chosen Ben Berkowitz to be its next managing editor of business and markets.…

16 hours ago

Business Insider hires Ortega as director of newsroom operations

Business Insider editor in chief Jamie Heller sent out the following on Monday: I'm thrilled…

16 hours ago

Rest of World promotes Chandran to deputy editor

Rest of World editor in chief Anup Kaphle sent out the following on Monday: We are excited…

17 hours ago

FT hires Venugopal as India newsletter editor

The Financial Times has hired Veena Venugopal as its India newsletter editor. She has been working at…

17 hours ago

FT taps Parkin to be Middle East and Africa news editor

Benjamin Parkin has been named Middle East and Africa news editor at the Financial Times, based…

20 hours ago