Rural Local Phone Companies

An Oppenheimer analyst said Wednesday he is taking a more cautious stance on shares of local phone companies that serve mostly rural areas. The Federal Communications Commission's ongoing Universal Service Fund audit could affect rural carriers throughout the sector. "We believe [the companies] involved in improper accounting practices are primarily small/private companies, but impact on (free cash flow) and dividends would be felt throughout the sector," analyst Timothy Horan wrote in a note to investors.
http://www.forbes.com/feeds/ap/2008/06/18/ap5129336.html