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Statement by Wireline Bureau Chief Julie Veach on Subsidy Reforms

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Released: March 20, 2014

NEWS
Federal Communications Commission

News Media Information 202 / 418-0500

445 12th Street, S.W.

Internet: http://www.fcc.gov

Washington, D. C. 20554

TTY: 1-888-835-5322

This is an unofficial announcement of Commission action. Release of the full text of a Commission order constitutes official action.
See MCI v. FCC. 515 F 2d 385 (D.C. Circ 1974).

FOR IMMEDIATE RELEASE:
NEWS MEDIA CONTACT:
March 20, 2014
Mark Wigfield, 202-418-0253
E-mail: mark.wigfield@fcc.gov

STATEMENT BY WIRELINE COMPETITION BUREAU CHIEF JULIE VEACH ON

EXTENDING THE PHASE-IN OF PHONE SUBSIDY REFORMS

Washington, D.C.

– Wireline Competition Bureau Chief Julie Veach has issued the following statement:
“The FCC’s unanimous, bipartisan reforms of universal service in November 2011 included changes to
make the system fairer for all consumers. Among these changes was the phase-out of excessive subsidies
for basic phone service, which allowed some phone companies to charge their customers as little as $5 a
month at a time when the average suburban or urban customer was paying $16. The reforms have been
gradually eliminating these excessive subsidies to level the playing field for all consumers and contain the
cost of the program, which is funded by universal service fees ultimately paid by consumers. As we
approach the third step of this phase-in, we are seeking comment on providing additional time to allow all
interested parties to adjust. We look forward to public comment on this question as we work to make
universal service fair for all consumers and businesses.”
-FCC-
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