NTCA offers alternatives to proposed Universal Service reforms

The Federal Communications Commission should take a “surgical” approach toward Universal Service reforms, said Mike Romano, senior vice president of policy for the National Telecommunications Cooperative Association.

As policymakers undertake the process of transitioning today’s voice-focused Universal Service and access charge system to focus on broadband deployment, for example, Romano said they should recognize that “rural telcos have already done a terrific job of using funds for this purpose today.” Romano also noted that the rate of return system has worked well to support broadband deployment and Romano suggested that policymakers should tweak the ROR system rather than “throw it away altogether.” Not surprisingly, Romano also argued that attempts to restrain the size of the Universal Service fund shouldn't be based on arbitrary caps. Although the overall size of the high-cost fund has grown sharply in recent years, he argued that the growth in payments to small rural telcos has seen a compound annual growth rate of only 3%.