Texans in rural areas of the state are at risk of seeing up to a $200 increase in their monthly bills for phone and broadband services provided by rural telephone providers.
Currently, rural Texans can stay connected with the world through the small and rural telecommunications providers who maintain the communications network across more than 50% of the state. The network provides more than basic phone service – it’s a hybrid network that gives Texans in these areas access to voice, broadband and other services as well. This network serves as the backbone that transports voice and data across the state – allowing all Texans to communicate by their landline or mobile device.
However, this network is only feasible with the Texas Universal Service Fund (TUSF). Under statute, TUSF collects fees from telecommunications provides across the state and distributes them to ensure all Texans have access to services at reasonable and comparable rates.
Over the past year, Texas’ Public Utility Commission (PUC) failed to take necessary action to collect the funds required to meet the statutory obligations of TUSF. Since January of this year, high-cost and rural telecommunications providers have received approximately 30% of the funds the Texas statute and PUC determinations entitle them to receive.
Texas Governor Greg Abbott escalated this issue by vetoing important legislation (HB 2667) passed by the Texas Legislature intended to give the PUC direction on this pertinent issue.
Should telecommunications providers not receive the full cost recovery they are entitled to under statute, these providers will be forced to make up this revenue shortfall from their customers alone. As it stands, rural customers face increases to their local telecommunications bills that may range from $25 to nearly $200 per month.
Further, this ongoing financial discrepancy poses a threat for providers to sustain rural networks, critical infrastructure and access to voice and broadband throughout the state.
Texas Corn Producers Association encourages the state’s corn farmers and rural Texans to look into this issue and determine how it may impact them and their farms.
There is a petition open online that interested parties may sign, aiming to encourage the Governor to address this important issue for rural Texans. You can access the petition HERE.
