Why you’re paying too much for your cell service

Ten years ago, it wasn’t worth it for cell phone companies to set up networks in rural areas. There wasn’t room to make a profit, so instead of “wasting” money in these areas, companies would have just conveniently ignored them. That is, if not for a tax that upped the bills of suburban and urban subscribers, which provided a subsidy for carriers with rural networks. Problem is, you’re still being charged this tax 10 years later.

Critics say the cellular companies are enjoying a windfall because their networks are much cheaper to build and maintain than miles of wires and telephone poles. They say logic dictates the subsidy should be based on actual cost.

We’re totally on board with that. Yes, it’s much more costly to operate a network in rural areas. Yes, they need service, too. So we as a country should be willing to pay a tax in order to keep that service running. For the greater good, you know?

However, companies shouldn’t be able to collect more than they’re spending. We’re all for helping out our fellow man, but when our fellow man hangs us over a balcony and shakes the money out of our pockets, we’re not so inclined to help.

The fund has been filled with over $44 billion in 10 years. That’s $44 billion paid by unassuming Americans into a fund that, at least partially, lines the pockets of the companies receiving it. We’re not experts in cell networks, but we’re pretty sure it hasn’t cost that much over the last 10 years to run a network.

There is now a movement to amend this tax. Where do we sign up?

[Houston Chronicle]

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