By Jolene FarleyThe cost of interstate long distance phone calls increased slightly across the nation on Tuesday, July 1. The Federal Communications Commission increased the Federal Universal Service Charge on consumers’ telephone bills from 9.1 percent to 9.5 percent on interstate communications, according to an Alliance Telecommunications press release. All telephone companies providing interstate service are mandated by Congress to contribute to the fund, and the cost of their contribution is passed on to consumers. The increase will affect consumers differently, depending on how many long-distance phone calls made. "It will depend on how much interstate communication someone does," Alliance Telecommunications Marketing Director Amy Ahlers said.For instance, if a customer has a long distance bill of $20 he or she would pay $1.90 above the $20 charge versus $1.82 before the rate change took effect.Locally, Hills Telephone Company’s July billing will reflect the increase. The Universal Service Fund was founded in the 1930’s to promote telephone services to all households because telephones provide a vital link to emergency services, government services and surrounding communities. The fund helps make phone service affordable and available to all Americans, including low income consumers, those living in areas where the cost to provide service is high and schools, libraries and rural health care providers. Without the Universal Service Fund, customers in high-cost areas would pay more for telephone service, according to Alliance Telecommunications. Typically small, rural companies have higher operating and equipment costs than urban companies and rural companies have fewer customers, smaller calling areas and limited economies. The FCC distributes money from the Universal Fund to local companies based on specific costs. In the past, only long distance companies paid fees to support the fund but in 1996, Congress passed a law expanding the types of companies contributing to the fund. Currently, all telecommunication companies providing service including long distance companies, local telephone companies, wireless telephone companies, paging companies, and pay phone providers are required to contribute to the Federal Universal Service Fund. Contribution requirements change quarterly, depending on the needs of the fund and the consumers it is designed to help. The amount each company is required to contribute will change accordingly. Hills Telephone Company, Inc. is owned by Alliance Telecommunications, Dell Rapids, Golden West, Rapid City, S.D., and Hector Communications.
