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At the beginning of his three-year federal prison sentence for felony tax evasion, Roger Shoffstall lost his telephone privileges when a guard caught him running his small Alaska phone company from behind bars.
He’s lost a lot of privileges over the years. Shoffstall, 75, can’t serve on a federal jury. Unlike most Alaskans, he doesn’t receive an annual Permanent Fund dividend check. And he is not allowed to own a gun.
One thing never changes, however: Each year, the federal government sends his company, Summit Telephone, more than $1 million.
The money comes from a special government subsidy program that Congress created to bring fast, affordable phone and internet service to hard-to-reach places. You help pay for it.
Pull up your latest phone bill and look for a line labeled “Universal Service Fund.” Some phone companies list it as a “Universal Connectivity Charge” or fold it into a “Regulatory Programs & Telco Recovery Fee.” It’s all the same thing: a surcharge added to the monthly bill of phone customers throughout the United States.
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He’s lost a lot of privileges over the years. Shoffstall, 75, can’t serve on a federal jury. Unlike most Alaskans, he doesn’t receive an annual Permanent Fund dividend check. And he is not allowed to own a gun.
One thing never changes, however: Each year, the federal government sends his company, Summit Telephone, more than $1 million.
The money comes from a special government subsidy program that Congress created to bring fast, affordable phone and internet service to hard-to-reach places. You help pay for it.
Pull up your latest phone bill and look for a line labeled “Universal Service Fund.” Some phone companies list it as a “Universal Connectivity Charge” or fold it into a “Regulatory Programs & Telco Recovery Fee.” It’s all the same thing: a surcharge added to the monthly bill of phone customers throughout the United States.
This Convicted Felon Gets $1 Million a Year to Sell Obsolete Internet Service. You Pay for It.
Roger Shoffstall spent three years in prison for tax evasion. Still, each year the federal government pays his Alaska company, Summit Telephone, for internet service that’s slower than in most of the U.S.


