Monday, August 4, 2008

Tracfone a frontrunner against FCC's tax increase

The Federal Communications Commision (FCC) has recently announced its plans to raise the Universal Service Fund (USF) fee to $1 or more every month. This new ruling would apply to all carriers of wireless service. While $1 doesn't seem like too much at first, for companies like Tracfone, this is nearly a 1600% increase from the previous USF fee. This increase adds up quickly and will definitely have a huge impact on Tracfone's financials. Tracfone is currently saying alot to get people to get on their side to protest against the FCC's rulings. The FCC is a federal committee but is operated completely by the public. Many past FCC rulings have been overturned because of public outcry, so hopefully for Tracfone this will be no exception.

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