Texas House Bill HB2835

Texas 2013 - 83rd Regular

Caption

Relating to monthly support received from the universal service fund.

Impact

The implementation of HB 2835 is expected to stabilize telecommunication services in rural Texas by providing consistent funding through the universal service fund. By revising how monthly support amounts are determined and distributed, the bill will aid smaller operators in maintaining operations and offering competitive services to their customers. This support is critical for improving infrastructure and ensuring that residents in rural areas have access to reliable communication services, which are essential in today’s digital age.

Summary

House Bill 2835 addresses the provision of monthly support received from the universal service fund, focusing on telecommunication companies in Texas, particularly those serving small and rural communities. The bill proposes amendments to existing sections of the Utilities Code, offering a framework for the calculation and distribution of support amounts to eligible local exchange companies. This initiative aims to ensure that rural areas have equitable access to sufficient telecommunication services that are often underserved due to financial constraints.

Contention

Notable points of contention regarding HB 2835 include the concerns raised by larger telecommunication providers about the potential fairness of the distribution mechanism. Critics argue that the focus on small and rural companies may lead to imbalances in support, thus disadvantaging other market players. There are also discussions about the transparency of how support amounts are calculated and whether it adequately considers changes in the cost of living and inflation, which can affect the sustainability of rural service providers.