Senators back telecom carriers’ plans for USF reform

A bipartisan group of seven senators wrote to Federal Communications Commission Chairman Julius Genachowski expressing support for an industry-backed proposal to shift federal subsidies from wireline phone service to broadband Internet access.

Observers say that proposal, dubbed America’s Broadband Connectivity (ABC) plan, will form the basis of any likely overhaul of the Universal Service Fund (USF). Critics, including the American Cable Association, have argued that the ABC plan favors incumbent telecom carriers and gives them first crack at federal funds, rather than allowing open competition among all providers.

“We support the efforts of the FCC to bring broadband service to communities across the United States, and we encourage the Commission to carefully consider industry proposals that accomplish the goals of reform and that lead to more fiscally responsible, sustainable, and effective programs,” wrote Sens. Amy Klobuchar (D-MN), Orrin Hatch (R-UT), Mary Landrieu (D-LA), Jerry Moran (R-KS), Jon Tester (D-MT), John Hoeven (R-ND) and John Thune (R-SD). “As part of this effort, we encourage the Commission to adopt a USF and intercarrier compensation policy that encourages fairness and certainty with respect to access charges, maintains key elements of the ABC and Joint Rural Association framework, and that take advantage of the competitive marketplace and the wide range of broadband technologies.”