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AT&T CEO Calls On Google, Meta, Apple To Pay For Subsidies

AT&T desires the seven largest and most worthwhile tech firms, particularly Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, and Tesla, to assist subsidize Web and phone entry within the U.S.

AT&T CEO John Stankey mentioned on Monday at a telecoms discussion board that huge tech firms ought to be required to contribute to the Common Service Fund (USF), a federal program that spends $8 billion a 12 months on cellphone, Web, and different telecommunications providers.

The fund helps lower-income prospects, prospects who dwell in rural areas, or those that reside in high-cost areas. It additionally brings web and cellphone service to eligible colleges and libraries.

“The seven largest and most worthwhile firms on this planet constructed their franchises on the web and the infrastructure we offer,” Stankey mentioned, per a Reuters report.

“Why should not they take part in guaranteeing inexpensive and equitable entry to the providers of right now which might be simply as indispensable because the cellphone strains of yesteryear?” he added.

John Stankey, AT&T CEO. Credit score: David Paul Morris/Bloomberg through Getty Photos

As a telecommunications firm working within the U.S., AT&T is required to contribute to the USF.

The fund takes a proportion of AT&T’s revenues, beginning at 15.5%.

AT&T costs its prospects a Common Connectivity Cost based mostly on the USF proportion — so on the finish of the day, AT&T’s prospects pay a further price that goes in the direction of the fund.

“Within the aggressive trade we’re in, we can’t afford to soak up the prices related to the USF which have been imposed on AT&T,” an organization webpage reads.

Associated: AT&T CEO Reveals Explanation for Mass Outage, Provides Account Credit score

Stankey is not the one AT&T govt to just lately name consideration to the USF charge. Earlier this month, AT&T govt vp of federal regulatory relations Rhonda Johnson wrote that the corporate’s USF contribution proportion was now 34.4% — and had remained at above 30% for the previous 4 quarters.

Johnson wrote that Congress ought to develop the USF’s sources of funding to “tech firms – like Meta and Google – that make the most of shopper broadband connections.”

These huge tech firms have profited from having People on-line and must also contribute to a reformed fund, in keeping with Johnson.

Associated: AT&T Buyer Information Leaked to ‘Darkish Internet,’ Tens of millions Affected

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