Bill To Ax Colorado Telecom Subsidy Gets 1st Hearing

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(credit: centurylink.com)

(credit: centurylink.com)

DENVER (AP) – A bill to overhaul to a ratepayer subsidy for telephone providers is getting its first hearing in the Colorado Senate.

The proposal being heard Monday afternoon would gradually reduce the subsidy until it’s eliminated in 2025.

Supporters say the subsidy is outdated because it was originally used to help companies provide telephone service in rural, underserved areas. Critics say many of those areas now have several options.

The bill is opposed by CenturyLink Inc., which has received the bulk of the subsidy in the past. Other providers, including AT&T, support the legislation. It would eliminate subsidies in places where 90 percent of customers have at least five telecommunications providers. Providers working in less competitive areas would still be eligible for the fund.

The fund disbursed an estimated $54.3 million last year.

(© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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