Feb 10, 2005 -- Telephone companies adding junk fees
Clark has a regular phone line in his house, and he pays $14.95 a month for the service. But after junk fees are added on, he the total becomes $33. He also has an Internet phone line, for which he pays $24.95 a month. After junk fees, the total goes up to only $26. Why is there such a discrepancy between the junk fees? Traditional phone companies are adding on fees to help those in rural areas pay for service. It costs a lot of money to run lines and telephone polls to rural areas, and the phone companies want everybody to have a line. So, they're subsidizing by charging urban and suburban customers. The good news is that the system is breaking down because of modern technology. Many people are moving to cell phone only, wireless, or Internet, which have no subsidized fees. Of course, some legislators are trying to change that. Texas wants people in rural areas to pay market price for their telephones. Virginia has been looking at charging the same flat rate to all of the technologies. This would create a much lower subsidized fee. Clark thinks that if subsidizing is required, then it should only be for people whose incomes qualify. Thankfully, technology is creating more competition and causing major shift in the industry. Just remember that if you stop paying the fees, the telephone companies will have to figure out how to make them fees cheaper. Use the power you have!