Universal Service safe through 2008

UNIVERSAL SERVICE SAFE THROUGH 2008
[SOURCE: Reuters]
The Federal Communications Commission promised that past accounting problems would not affect subsidies for telephone and Internet services through 2008, including in rural and poor areas, Sen. John Rockefeller (D-WV) said on Tuesday. Until last week, Sen Rockefeller had blocked the nomination of a new FCC commissioner amid concerns over the agency's management of the Universal Service Fund. The USF subsidizes communications services in schools, libraries, rural areas and low-income households. In 2004, the agency briefly halted hundreds of millions of dollars in subsidies for schools and libraries across the country after discovering the program did not comply with certain U.S. government accounting standards. Congress had to approve exemptions to the so-called Anti-Deficiency Act so the USF programs would not run afoul of the accounting rules. The most recent exemption goes through 2006. "After internal FCC review, the FCC has assured me that all of the USF programs will, at least early into 2008, continue without disruption because they are in full compliance with federal budgetary requirements," said Sen Rockefeller whose largely rural state is a beneficiary of the program. He said in a statement that Congress would continue to work toward a permanent fix.
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