FCC Poised To Cap USF Service Temporarily

FCC POISED TO CAP USF SERVICE TEMPORARILY
[SOURCE: Technology Daily, AUTHOR: David Hatch]
The FCC is poised to impose a temporary cap on the multibillion-dollar universal service fund, with a vote expected this month. The effort is designed to curb the program's growth while substantive changes are pursued. On Oct. 26, FCC Chairman Kevin Martin circulated three USF proposals among his colleagues. New rules would freeze funding at 2007 levels to "competitive" carriers, mostly wireless firms that receive support in markets where dominant, traditional telephone companies are subsidized. He also recommended that the FCC consider eliminating a rule requiring that assistance to competitors be based on subsidies to dominant firms, even if competitors' costs are lower. In addition, he suggested that the agency consider "reverse auctions," which award universal service funds to carriers agreeing to the lowest subsidies. Both ideas would be outlined in proposed rulemakings subject to public comment. Meanwhile, the federal-state board may issue additional recommendations for long-term changes that reflect Martin's priorities.
http://www.njtelecomupdate.com/2007/11/fcc_poised_to_cap_usf_temporar.html