New 10-cent surcharge on Maine phone lines will fund broadband expansion

Starting in January 2020, the ConnectME Authority will impose a 10-cent monthly surcharge on every wired phone line in Maine to help fund broadband expansion projects in the state. The surcharge, approved by the Legislature as part of Maine’s most recent biennial budget, will be used to facilitate broadband expansion projects in the state in 2020 and beyond. Proceeds from the new surcharge will be placed into the ConnectME Fund, which provides small grants to fill funding gaps in municipal broadband expansion projects. The fund currently receives about $1 million a year from a 0.25 percent assessment on all customer bills for wired communication services such as traditional landline and voice-over-internet-protocol phones. The new 10-cent, flat monthly fee for wired phone service is expected to increase the fund’s annual budget by anywhere from $750,000 to $1.5 million a year, ConnectME Executive Director Peggy Schaffer said. The source of the funding comes from a 10-cent reduction in the E911 fee, which will instead be allocated to the ConnectME fund. Customers won’t see a net difference in their bills.

ConnectME is the public arm of Maine state government whose mission is to facilitate the universal availability of broadband internet service to all Maine households and businesses, among other initiatives.