Rural Telecom Firms Concerned With USF Bill

The National Telecommunications Cooperative Association, a group representing small and rural telecommunications carriers, argues that some of the proposed changes included in legislation to overhaul the Universal Service Fund could hinder their ability to operate in some areas or invest in broadband infrastructure.

NTCA CEO Shirley Bloomfield is expected to tell the House Communications Subcommittee about the group's concerns with two provisions in the legislation that would overhaul the fund, which provides support for telecommunications service in high-cost and rural areas. They include a provision that would reduce or eliminate "high-cost" support in areas deemed to be competitive and proposed changes to inter-carrier compensation, the charges carriers pay to other carriers to originate, transport, and terminate telecommunications traffic.

The bill, introduced in July by Communications Subcommittee Chairman Rick Boucher (D-VA) and Rep. Lee Terry (R-NE), would require the FCC to implement a mechanism for reducing or eliminating high-cost support to incumbent carriers in areas where at least 75 percent of households can receive voice and high-speed broadband service from a competitive provider that does not receive USF support. Other major provisions in the bill include expanding the USF to include support for broadband service.