It must not be forgotten, however, that there will be large numbers of consumers for whom there will be limited if any choices, and pricing plans that simply shadow each other rather than providing meaningful marketplace choices. In the rush to provide the best prices to large customers, carriers will try to recover a greater proportion of their fixed costs from customers that have the least choice. In most cases, this means the low volume residential subscriber. While the large volume customer may not object to paying these flat charges since its savings on long distance rates more than equal the fixed charges, the low volume subscriber has no choice but to pay. The Committee is rightfully concerned about the effect that all these flat monthly surcharges have on affordability for the average residential subscriber and the Ratepayer Advocate stands ready to work with the Committee to ensure that any bill released to the Legislature provides workable and meaningful relief to all New Jersey residential subscribers.
Telecommunications services are lifeline service for all New Jersey residents.
The federal Act which opened the doors to competition throughout the entire Telecommunications marketplace for both local and long distance carrier operations created a Universal Service Fund, with contributions from all service providers, based upon revenue. Universal Service was defined to include affordable services for low income customers and customers in high cost areas and discounts for schools and libraries . In 1997 the Board of Public Utilities completed lengthy hearings for the purpose of implementing the requirements of the federal Telecommunications Act of 1996 in New Jersey. The final phase of that docket, addressing issues related to the universal service aspects of the federal Act, concluded in December 1997, almost two years ago. In that proceeding, the Ratepayer Advocate put forth a proposal for creating a New Jersey Universal Service Fund to support the affordability of telephone service in high cost areas of the state, to create a Lifeline assistance program for low income residential subscribers, and to provide assistance to New Jersey schools and libraries that may be denied benefits from the federal fund.