Local Telephone Rates May Increase

Date posted - January 12, 2012

A proposal before the Federal Communications Commission could cause substantial rate increases for customers of small, independent telephone companies.

The proposal would do away with the USF, or Universal Service Fund, a revenue source designed to keep rates affordable for customers of those small rural companies. Dave Raak of Hospers Telephone Company explains.


Raak says the USF has allowed companies like Hospers Telephone to maintain rates at affordable levels.


Raak says there are approximately 150 small, independent phone companies in Iowa alone, whose customers would be adversely impacted by the termination of the USF.

By Tom Traughber
News Reporter

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