Why did Texas phone charges materially increase starting July 2022?

In Texas, consumer phone bills after July 2022  noticeably increased partially because of a Texas court ruling[1] plus the consumer’s phone company increasing certain other non-court related fees …most likely without any notice….


[1] The Texas Universal Service Charge – explained later – ‘trust’ fund was under-funded and a Court judgment, ordered phone providers (phone companies) to pay a (‘temporary’) charge increase until the shortfall is eliminated. Texas Telephone Association et al v. Public Utility Commission of Texas et al, Cause NO. 03-21-00294-CV ( Tex. Civ. App, Austin 3rd District, June 30, 2022).

The attached consumer pdf note discusses the detail behind the increases (since the phone company customer service hotline was of no help…and a no response reply to a faxed detail inquiry sent to the phone company headquarters).

As cited in the note, below is an outline of possible follow-on action by us consumers can progress regarding the increases…


  • Notifying our phone companies ….
    • to establish a policy that before there is an increase in any of its billings (other than cost increases associated with customer  usage – international calling charge is an example), they provide a conspicuous written user friendly explanation of how much the increase will be (amount and percentage increase) and an explanation why the increase is being applied?
    • to establish a policy that they publish in their billing statements a conspicuous user friendly glossary explaining each detail billing line item, its purpose and a relevant cite of the source of the charge (regulatory or statutory reference, phone company expense, etc.)?
    • to establish a policy to provide in their billing statement the process to advance a billing charge complaint, consumer advocacy contact or ombudsman?
    • to explain in writing to its customers why both a Federal Universal Service Charge and Texas Universal Service Charge are applicable since they appear to be duplicative charges for the same purpose? And what has the phone company advanced to challenge such charges being duplicative?
    • to explain in writing to its customers the rationale behind the decision why the  Federal and Texas Service Charge are passed on to its customers and not absorbed by the phone company as a business expense?
    • to explain in writing to its customers the rationale behind charging both the Texas and Federal Universal Service  Charge AND the 9-1-1 Service Fee and 911 Equalization Surcharge, since published discussions cites for the Universal Charge  such charge also covers 9-1-1 service related  needs…these 9-1-1 extra charges appear to be not only duplicative  but a three times charge for the same 9-1-1 service?
    • to provide a written notice and analysis to its customers of the timing when the Court ordered ‘temporary’ increase in the Texas Universal Service Charge will terminate and return to its pre July 2022 charge, because the relevant Service Charge fund shortfall is eliminated?
    • are the subsidized Universal Service Charge funded by the consumer, in effect a form of federal and state taxation that could be taken as a deduction or tax credit regarding a consumers income tax filings?