FCC Increases Phone Service Subsidies

The Federal Communications Commission raised to $437 million from $207 million the pot of money available to big phone companies, such as the regional Bells and GTE Corp., for serving rural customers and others in expensive-to-serve markets. This action is “about making sure consumers everywhere get the same high-quality service at comparable rates,” FCC Chairman William Kennard said. Federal subsidies are mostly paid by fees the FCC imposes on long-distance companies.