House Update on Universal Service Fund High Cost Support Program

House Commerce Committee Chairman Henry Waxman (D-CA), Communications Subcommittee Chairman Rick Boucher (D-VA), Ranking Member Joe Barton (R-TX) and Communications Subcommittee Ranking Member Cliff Stearns (R-FL) released information about the top recipients of high-cost subsidy dollars from the federal Universal Service Fund.

The information released by the Committee was provided by the Federal Communications Commission in response to a June 15, 2010, letter requesting that the agency provide an update to an earlier data request and to provide more targeted data. AT&T has received the most money over the last three years -- $1,302,540,713 between 2007 and 2009. Verizon ranked second, receiving $1,275,473,981. The next recipients were CenturyTel, AllTel (acquired by Verizon in 2009), Telephone and Data Systems, Windstream, Frontier Communications Corporation, and Sprint. Verizon shot past AT&T in 2009 after it acquired AllTel. The Committee released other data as well, including a state-by-state list of carriers eligible to receive the funds.

Rep Barton released a statement saying, ""The FCC is not only wasting time chasing a network neutrality 'problem' that doesn't exist it is wasting Americans' money by failing to reform the Universal Service Fund. Subscribers now pay close to 14% of their long-distance phone bills to subsidize scores of telephone providers in each geographic market while other providers are serving the same markets without a penny of support." He also said, "It is inexcusable that the FCC chairman is trying to reclassify broadband service under the pretext that the commission lacks authority to implement aspects of the national broadband plan when he should instead be focusing on bipartisan aspects of the plan that he clearly has authority to move on, such as reducing antiquated voice service subsidies."