Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nyse  >  CenturyLink    CTL

CENTURYLINK (CTL)
My previous session
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsTweets
OFFRE

CenturyLink : Fund that keeps rural phone rates affordable in peril

share with twitter share with LinkedIn share with facebook
share via e-mail
0
01/13/2018 | 11:31pm CEST

A 30-year-old state fund that keeps landline phone service affordable for rural Idahoans is in jeopardy as more people drop landlines.

Eight small phone companies that people in Boise and other cities may not know - with names like Rural Telephone Co., Fremont Telecom and Columbine Telephone - share $1.7 million annually. The money comes from surcharges on landline bills and long-distance landline minutes. The subsidies allows the companies to provide basic residential phone service for $25.76 per month. In comparison, CenturyLink, which serves much of Southern Idaho's population centers, charges $25 a month.

But as landlines fade, revenue from the surcharges is fading too. The surcharges don't apply to cell phones and voice-over-internet phones, because the Legislature has never authorized that.

Rural phone service costs more than service in urban areas. The fund was established under the Idaho Telecommunications Act of 1988 to ensure that all Idahoans have access to phone service at reasonable rates, no more than 25 percent higher than CenturyLink and other companies that don't receive a subsidy.

Idaho had 532,000 home landlines and 187,000 business lines in 2000, according to the PUC. By 2017, it had just 152,000 home and 122,000 business lines. Long-distance minutes fell from 302 million to 125 million.

Last fiscal year, the Universal Service Fund collected $500,000 less than it paid out. In response, the PUC doubled the surcharges Sept. 1. Fees rose to 25 cents from 12 cents per month on home lines, 44 cents from 20 cents on business lines and 0.9 cents from 0.5 cents per minute on long-distance calls.

That will carry the fund through the current fiscal year, which ends June 30. But the fund has run low - it ended the last year with an $80,784 balance - and it is unsustainable even with the higher fees, the PUC says.

The commission worries that raising the surcharge will make the problem worse by encouraging more people drop their landlines.

The agency has scheduled two workshops, on Wednesday and Feb. 28, to discuss how to keep the fund solvent. It's meant to facilitate discussion between the commission, industry representatives and the general public, commission spokesman Matt Evans said. While the public is welcome to attend, the commission will not take testimony, he said.

Both workshops, beginning at 10 a.m., will be held at the commission's hearing room at 472 W. Washington St., Boise.

One way to keep the fund solvent could be to impose a surcharge on cell and voice-over-internet phone users. That would require action by the Legislature. Utah and Nebraska are now charging cell-phone users to support similar funds, Evans said.

"We haven't talked about that, but everything is on the table at this point," he said.

People can also participate in the workshops by phone, calling in on a toll-free line at 888-706-6468 and entering the code 4435939 when prompted.

© Copyright © 2018 Post Company, source Newspapers

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on CENTURYLINK
09/20S&P sector reshuffle may do little for telecom stocks
RE
09/20CENTURYLINK : Appoints Former Apple Exec Betz to Chief Security Role
AQ
09/18CENTURYLINK : names Chris Betz as Chief Security Officer
PR
09/15CENTURYLINK : expands broadband in southwest Colorado
AQ
09/13CENTURYLINK : New UHD Channel Featuring NASA Content and Powered by Harmonic Vid..
PR
09/12CENTURYLINK : Elma's Molly Johnston honored by Seattle Seahawks
AQ
09/12CENTURYLINK : Be another brick in the walkway
AQ
09/11CENTURYLINK : prepares for Hurricane Florence, encourages customers to be prepar..
PR
09/11S&P 500 MOVERS : Stx, atvi
AQ
09/11CENTURYLINK : global broadcast fiber network now gives content providers access ..
PR
More news
News from SeekingAlpha
09/21Telecom stocks pacing gainers 
09/18CenturyLink places Betz in chief security role 
09/14Cord-cutters see pinch as streaming costs gradually rise 
09/11Technology And Telecom Dashboard - Update 
09/11What's Next For CenturyLink's 10% Yield? 
Financials ($)
Sales 2018 23 598 M
EBIT 2018 3 512 M
Net income 2018 908 M
Debt 2018 36 506 M
Yield 2018 9,42%
P/E ratio 2018 26,74
P/E ratio 2019 22,53
EV / Sales 2018 2,60x
EV / Sales 2019 2,61x
Capitalization 24 778 M
Chart CENTURYLINK
Duration : Period :
CenturyLink Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends CENTURYLINK
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 18
Average target price 21,3 $
Spread / Average Target -7,2%
EPS Revisions
Managers
NameTitle
Jeffrey K. Storey President, Chief Executive Officer & Director
Harvey P. Perry Non-Executive Chairman
Sunit S. Patel Chief Financial Officer & Executive Vice President
Aamir Hussain Chief Technology Officer & Executive VP
Glen F. Post Director
Sector and Competitors
1st jan.Capitalization (M$)
CENTURYLINK35.31%24 778
VERIZON COMMUNICATIONS1.93%224 860
NIPPON TELEGRAPH AND TELEPHONE CORP-3.43%96 933
DEUTSCHE TELEKOM-6.05%77 414
SAUDI TELECOM COMPANY SJSC--.--%43 731
ORANGE-4.91%43 014