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FCC wasting phone subsidy money, study says

Grant Gross | July 11, 2013
The Federal Communications Commission has wasted hundreds of millions of dollars on telephone subsidies, with some rich areas of the country receiving up to $23,000 per line per year from the agency's Universal Service Fund, according to a new study.

With 99.9 percent of U.S. residents having mobile telephone service available to them, the USF has "run out of things to subsidize," the study said.

The authors' criticism of the size of the fund fails to recognize the FCC's goal of expanding broadband service to rural areas that don't have it, in addition to supporting voice service, the FCC spokesman said. "We are doing so without growing the fund by cutting back on waste fraud and abuse," he said.

 

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