Fee could increase if phone companies' proposal OK'd

A local consumer group says residents of Massachusetts and most other states could pay millions more in fees to the federal Universal Service Fund under a proposal from telephone companies. The $7 billion fund supports phone service in rural areas and provides Internet service at a discount to schools. The fund is financed by assessments on long-distance charges, but companies like Verizon Communications Inc. and AT&T Corp. say it would be fairer and more practical to charge a flat fee per phone line. The Massachusetts Consumers' Coalition, working with a Washington-based coalition of consumer groups, says a fee of $1.50 per line would boost USF fees in Massachusetts by $158 million to $1.5 billion. The groups say businesses that make a lot of long-distance calls would save under the proposal, while residents who make few long-distance calls would pay more. The phone companies say the average residential consumer pays $1.28 a month in USF fees. (Bruce Mohl)

The New England economy slowed a bit over the past few months according to a survey by the Federal Reserve. The "Beige Book," collects anecdotal information in all 12 Fed districts as a way to gauge the economy prior to interest rate-setting meetings. In the Boston district, which includes New England, retail sales were down broadly. Hotel occupancies and revenues were down slightly, although one tourism official held out hope the Red Sox's addition of foreign stars (such as pitcher Daisuke Matsuzaka) will boost international tourism. In manufacturing, plastics, furniture, and home-equipment, makers reported declining orders and sales. The technology sector reported strong sales, with some businesses experiencing double-digit growth. Commercial real estate is also on the upswing. (Robert Gavin)

Boston Celtics courtside ticket holders will be sitting in Lexus seats. The team said it signed the luxury car marque as the title sponsor for its courtside club that opened in October at TD Banknorth Garden. Lexus is paying an undisclosed amount for the sponsorship, which changes the club's name to the "Lexus Courtside Club" and also puts the brand name on courtside seats at Celtics games, on tickets, and on stat sheets handed out to fans. (Keith Reed)

Natick-based BJ's Wholesale Club Inc. said fourth-quarter profit plunged 77 percent, but a stronger-than-expected sales gain in February helped lift shares of the third-biggest US retail warehouse club 2 percent to $31.53. Profit tumbled to $11.9 million, or 18 cents per share, for the quarter ended Feb. 3 from $51.6 million, or 76 cents per share, a year ago. Restructuring costs shaved 44 cents per share -- including expenses for closing the pharmacies and restaurant-supply stores, as well as asset impairment, severance, and a higher credit card claim reserve. Revenue grew 13 percent to $2.43 billion from $2.14 billion a year ago. (AP)

Express Scripts Inc., vying with CVS Corp. to acquire Caremark RX Inc., boosted its $26.1 billion offer for Caremark and expects US antitrust regulators will seek more information about the bid. Express Scripts's new proposal might raise its offer 87 cents a share to as much as $61.97. The increase was disclosed minutes after a Delaware judge denied an investor's attempt to have a March 16 Caremark shareholder vote on the $24.9 billion CVS proposal put on hold. (Bloomberg)

Clothing retailer Talbots Inc. said fourth-quarter earnings plunged, hurt by acquisition costs, stock options expensing, and deep discounts. For the quarter ended Feb. 3, which included 14 weeks compared with last year's 13, the Hingham-based company earned $17,000, or breakeven per share, down from $19.8 million, or 37 cents per share, a year ago. Revenue rose 31 percent to $638 million from $486.2 million. Analysts were expecting breakeven earnings on sales of $638.6 million, according to a poll by Thomson Financial. The recent results were weighed down by 15 cents a share in acquisition costs and by 4 cents a share in stock options expenses. (AP)

American Skiing Co., which less than three weeks ago said it was selling two resorts for $73.5 million, revealed it might sell its Sunday River and Sugarloaf locations in Maine. The Park City, Utah, company said it's reviewing options for the resorts. (Bloomberg)