(Story by Jacob Lehrer)

When you see your phone bill this month and think it’s much higher than it usually is, you are correct. Residents in the state of Texas are going to have to pay more for their phones to make up for a lack of funding for what is called the Texas Universal Service Fund (TUSF). The rate hike for the TUSF is increasing from 3.3% up to 24%.

Why are we paying more money?  “The move to increase the rate to 24% came after a court determined the [Public Utility Commission] was failing to make adequate payments from the universal fund to rural telecommunications and ordered the commission to restore $200 million in overdue money to the fund,” according to the Texas Tribune.

The fund allows many programs that are used by telephone providers, primarily for people in rural Texas, to have access to emergency services, Lifeline, and allow telecommunication companies to provide long distance calling.

The Public Utility Commission says that, “the programs within the TUSF also include high-cost assistance programs to assist telecommunications providers in providing basic local telephone service at reasonable rates in high-cost rural areas.”

Telecommunication providers have been trying to tell the Public Utility Commission about the low fund. Then, telecommunication companies took the PUC to court, and the court order forced the PUC to address the TUSF. 

So a surcharge is given to telecommunication providers to pay to increase the funding. By doing so this will allow the Public Utility Commission to meet all outstanding obligations. However, we pay for it because telecommunication providers are able to pass that along to us. They don’t have to, but they are also not restricted from doing so. Thus, they usually will pass it along to us to pay for the rate. 

So when you do see your phone bill and you wonder why it is much higher, especially if you are on a family plan, a plan with multiple phones, or do lots of long distance calling, you are correct in seeing that it will be much higher this month.