Katie McAuliffe: CPUC Preys on Prepaid Phone Services
We’re pleased to share this piece from Katie McAuliffe, Executive Director of Digital Liberty & Federal Affairs Manager at Americans for Tax Reform.
Given California’s precarious economic situation, it would seem unwise for the state to make its business climate any more difficult for those still choosing to operate there. However, the California Public Utilities Commission (CPUC) has chosen to persecute only one of the many prepaid wireless carriers in the state.
On July 11, 2013 a decision before the CUPC was handed down ordering TracFone to pay nearly $24.5 million to make up for user fees and public purpose program surcharges that were uncollected, despite previously declaring TracFone exempt from the charges. The CPUC disregarded clear evidence that prepaid wireless does not charge a monthly rate or know whether a call is inter- or intra- state like traditional telecommunications companies.
TracFone’s issue with CPUC stems from the fact that, unlike monthly subscription plans, prepaid wireless is a debit service, and thus cannot be not subject to fees in the same way as traditional… Read More