Rates for Texas basic residential telephone service, includingthe federal subscriber line charge, range fromabout $13.82 per month in rural areas to $16.72 in urbanareas. But long-run incremental costs for service rangefrom $11.84 per month in the most densely-populatedareas to more than $250 per month in rural areas. Approximately95 percent of all basic residential lines aresubsidized. Sources for the subsidies include added features,business service, long distance and the UniversalService Fund.