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Rate Floor’ Makes Service Less Affordable for Rural Consumers; Big Rate Hike Will Take Place This Summer Absent FCC Action

March 22, 2019 - WASHINGTON - Federal Communications Commission Chairman Ajit Pai announced that the Commission will vote at its April meeting on eliminating a policy known as the “rate floor,” which is forcing many rural customers to pay higher telephone rates. Under Chairman Pai’s leadership, the Commission froze the rate floor in 2017. Now, the Chairman is asking his colleagues to eliminate it once and for all.

“The FCC’s rate floor is a counterproductive regulation that hurts rural Americans,” said Chairman Pai. “For example, unless the Commission takes action, many rural consumers will be forced to pay almost 50% more out of their pockets starting this July. That’s why we’ve heard from the AARP, the National Consumer Law Center, the National Tribal Telecommunications Association, and others that the rule makes service in rural areas less affordable. I’ve spoken for years against the rate floor and am pleased that the Commission will be voting in April on eliminating it. I hope my colleagues will join me in taking this step to provide needed relief to older Americans on fixed incomes, low-income Americans, and many others.”
Source: FCC