CTIA Comments on the FCC’s Proposed USF Reforms

The lobbying organization for the wireless industry, CTIA, has filed comments in the Federal Communications Commission current universal service proceeding. CTIA said that the need for reform within the Universal Service Fund (USF) is “urgent,” yet calls for the FCC to look at the success of subsidies in aiding carriers to deploy networks to rural areas. The FCC has been discussing possible solutions to ease the growing demands on the dwindling USF, while still aiding telecoms that provide needed communication services to underserved areas. On Jan. 29, the commission issued three proposed rulemaking reforms for the fund: the Joint Board’s high-cost reform recommendation, identical support rule and reverse auctions proposal. While CTIA says it recognizes that “excessive subsidy levels can be as detrimental…as too little support,” CTIA recommends instead of subsidy caps that the Commission should “adopt specific goals for the program and performance metrics to measure its achievement of those goals.” Specifically CTIA recommends reforms that reward efficiency. CTIA said that it supports the Joint Board’s proposal to set aside dedicated funding for the creation and deployment of mobility and broadband, but urged the Commission to create a functional definition of “broadband” rather than rigid speed requirements, as it plans to better support the deployment of broadband networks in underserved areas.
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