• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Federal Trade Commission (FTC)

Your phone bill could go up to fund schools’ Wi-Fi

By
TIME
TIME
Down Arrow Button Icon
By
TIME
TIME
Down Arrow Button Icon
November 17, 2014, 1:48 PM ET
Technology
contract armin harrisKyle Bean for Fortune

This post is in partnership with Time. The article below was originally published at Time.com.

By Alex Fitzpatrick, TIME

Should Americans be asked to pay a little more in phone bill fees to help fund better Internet connections in public schools? That’s what Federal Communications Commission Chairman Tom Wheeler proposed Monday.

If you have a landline or mobile phone, then you probably already pay a small fee every month into what’s called the Universal Service Fund. The USF is essentially a pool of money created in 1997 as a bulwark against market failures leading to poor Internet access in rural and low-income communities. Wheeler’s idea would hike the USF fees by about $1.90 a year for the average phone subscriber, the FCC estimates, with the money going to a $1.5 billion increase for a program designed specifically to subsidize faster Internet connections in more of the country’s public schools.

The FCC has been reworking that program, called E-Rate, to shift its focus from funding old-school technologies to modern ones like high-speed wireless access, which many observers say is sorely lacking in many of the country’s schools. Almost 70% of school districts say none of their schools meet the FCC’s long-term connectivity targets, the agency said Monday, with 58% of districts pinning the problem on cost. That situation, some have warned, could make students less competitive later in life. Closing that so-called “broadband gap” has been a priority of the Obama administration, which in June of last year announced a program designed to get broadband access to 99% of American students by 2017 — and E-Rate is a big part of meeting that goal.

The agency is framing the fee hike as a way to ensure that more students have access to the kinds of high-tech learning solutions that could make them — and the nation — more competitive down the road. “While the impact on consumers will be small, the impact on children, teachers, local communities and American competitiveness will be significant,” the FCC says in a fact sheet about the proposal. The agency has also promised to make E-Rate spending more transparent, so Americans get a better idea of where those phone bill fees are going.

Still, the FCC can’t unilaterally raise the fees you pay on your phone bill. Wheeler’s proposal will first have to clear a public comment period before being voted upon by himself and the agency’s four commissioners. However, given how expanding Internet access in schools is a top Obama administration priority and the FCC’s Democratic commissioners outnumber their Republican counterparts 3-2, it’s a safe bet the agency will move forward with the plan, barring any public outrage over it.

About the Author
By TIME
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

Tesla CEO Elon Musk listens as U.S. President Donald Trump speaks to reporters in the Oval Office of the White House on May 30, 2025 in Washington, DC.
PoliticsElon Musk
The White House snubs Elon Musk’s offer to cover TSA salaries as airport miseries hit record levels
By Eva RoytburgMarch 25, 2026
5 hours ago
lancaster
AIschools
Two private school boys get probation for using AI to create 350 fake nudes of their classmates
By Mark Scolforo and The Associated PressMarch 25, 2026
5 hours ago
UN
PoliticsUnited Nations
It’s time for slavery reparations, ‘the gravest crime against humanity,’ UN General Assembly says
By Edith M. Lederer and The Associated PressMarch 25, 2026
5 hours ago
melania
PoliticsWhite House
Enter Melania Trump, escorted by humanoid robot: ‘I’m Figure 03, a humanoid built for the United States of America’
By Darlene Superville and The Associated PressMarch 25, 2026
5 hours ago
Personal FinanceGold
How to sell gold and silver: Tax implications and what you should know
By Joseph HostetlerMarch 25, 2026
5 hours ago
iran
Middle EastMiddle East
‘We do not plan on any negotiations’: Iran laughs at White House’s claims of cease-fire talks
By Jon Gambrell, Mike Corder, Munir Ahmed, Aamer Madhani and The Associated PressMarch 25, 2026
5 hours ago

Most Popular

Magazine
The youngest-ever female CEO of a Fortune 500 company is fighting Trump's cuts to keep Medicaid strong
By Fortune EditorsMarch 24, 2026
2 days ago
Commentary
The Treasury just declared the U.S. insolvent. The media missed it
By Fortune EditorsMarch 23, 2026
2 days ago
Success
Palantir’s billionaire CEO says only two kinds of people will succeed in the AI era: trade workers — ‘or you’re neurodivergent’
By Fortune EditorsMarch 24, 2026
1 day ago
Success
The job market is so bad that ‘reverse recruiters’ are charging $1,500 a month just to help people look for jobs
By Fortune EditorsMarch 25, 2026
18 hours ago
Energy
Nobel laureate Paul Krugman calls it 'treason': $580 million in suspicious oil futures traded minutes before Trump's Iran reversal
By Fortune EditorsMarch 24, 2026
1 day ago
Success
JPMorgan has started monitoring the keystrokes, video calls, and meetings of its junior investment bankers—and they say it's for employee well-being
By Fortune EditorsMarch 24, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.