If you own a cable modem, expect a substantial increase in your monthly rates if a proposal currently before the Federal Communications Commission goes forward.
About 85 percent of the fund's revenues are split between two causes: the "e-rate" program (40 percent), which subsidizes school and library Internet connections, and rural telephone companies (45 percent), which might otherwise end up paying more for telephone service than city dwellers. The remaining 15 percent goes toward discounts to low-income subscribers and funds rural health care.
Blame politicians from rural states--like Republican Sen. Ted Stevens of Alaska, who heads the appropriations committee, along with Republican Sen. Conrad Burns of Montana, who heads the communications subcommittee. Stevens, Burns and other rural-state politicians vie to find new excuses to increase Universal Service Fund-related taxes.
Heath care and libraries? Fine, though it would make more sense to use general revenues instead of hidden user fees. But rural telephone companies? More Red state subsidies. Let 'em vote something toward keeping dirty bombs out of shipping containers in the port cities of the Blue states. Then we'll talk.