Thursday, February 24, 2011

59 Percent of Universal Service Funds Used for 'Overhead?

The universal service program in the United States, despite its good intentions, is ineffective, inefficient, and inequitable, said Scott Wallsten , research vice president and senior fellow at the Technology Policy Institute.

Analyzing data submitted by about 1,400 recipients of high-cost subsidies from 1998 to 2008, Wallsten found that of each dollar distributed to recipient firms, about 59 cents goes to “general and administrative expenses” overhead such as planning, government relations, and personnel, rather than to making telephone services more affordable.

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