Cecilia Kang
"AT&T and Verizon Communications were the biggest recipients of federal support from an $8 billion phone subsidy program, according to data released Thursday by the House Energy and Commerce Committee.
Over the past three years, AT&T received $1.3 billion in funds to deploy phone lines to rural areas. Verizon got $1.27 billion in the same 2007-09 period.
Lawmakers and public interest groups are questioning the use of those federal funds, much of which appears to go to wireless services areas where telecom companies would be even without support. And they say the fund needs to be overhauled to focus on expanding broadband connections.
“Subscribers now pay close to 14 percent of their long-distance phone bills to subsidize scores of telephone providers in each geographic market, while other providers are serving the same markets without a penny of support,” Rep. Joe Barton (R-Tex.) said in a statement."
Over the past three years, AT&T received $1.3 billion in funds to deploy phone lines to rural areas. Verizon got $1.27 billion in the same 2007-09 period.
Lawmakers and public interest groups are questioning the use of those federal funds, much of which appears to go to wireless services areas where telecom companies would be even without support. And they say the fund needs to be overhauled to focus on expanding broadband connections.
“Subscribers now pay close to 14 percent of their long-distance phone bills to subsidize scores of telephone providers in each geographic market, while other providers are serving the same markets without a penny of support,” Rep. Joe Barton (R-Tex.) said in a statement."
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