There's a tentative settlement in the fight over a state fund that subsidizes phone service in expensive-to-serve areas.

The competitors battling over the Universal Service Fund told state regulators they have a settlement in principle and need time to put the details on paper.

They didn't announce the terms, but the deal is expected to trim the size of those subsidies to AT&T and other phone companies, and to reduce the 4.4 percent levy on phone bills that feeds the USF. The Public Utility Commission's staff recommended huge cuts in the fund (see our earlier story), but the deal isn't expected to go as far as the staff recommended.

Generally speaking, AT&T was leading the fight to leave the fund alone — that company is the biggest recipient of the money — and competitors from cable and smaller phone companies were urging cuts in those subsidies.

The announcement means, for now, that the Public Utility Commission won't have to hold a planned April hearing on the USF.