Board Begins Universal Service Reform Proceeding

BOARD BEGINS UNIVERSAL SERVICE REFORM PROCEEDING
[SOURCE: Federal Communications Commission]
The Federal-State Joint Board on Universal Service recommended that the Federal Communications Commission take immediate action to rein in explosive growth in high-cost universal service support disbursements. The Joint Board is also seeking comment on proposals for long-term, comprehensive reform of the high-cost program. The Joint Board recommended that the Commission immediately impose an interim, emergency cap on the amount of high-cost support that competitive eligible telecommunications carriers (ETCs) may receive for each state, based on the average level of competitive ETC support distributed in that state in 2006. In a separate Public Notice, the Joint Board is seeking comment on the following issues and proposals for comprehensive reform: 1) The use of reverse auctions to determine high-cost universal service support; 2) The use of geographic information systems technology and network cost modeling to better calculate and target support at more granular levels; 3) Disaggregation of support below the study area or wire center level; 4) The methodology for calculating support for competitive ETCs; AND 5) Whether universal service funding should be used to promote broadband deployment directly. The Joint Board plans to make recommendations for comprehensive high-cost universal service reform within six months. It recommends that the Commission act on these further recommendations within one year from the date of the Joint Board's further recommended decision.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-272806A1.doc

* Jt Brd Decision: http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07J-1A1.doc

* Public Notice: http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07J-2A1.doc

* Chairman Martin: "Today's recommendation is not an end in itself, but rather signals the need for comprehensive reform."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07J-1A2.doc

* Commissioner Copps: "While I commend my colleagues for their good intentions - to curb the growth of the universal service fund - I have serious concerns that such a cap will be misinterpreted as a solution, even though it does not address - or pretend to address - the fundamental, comprehensive reforms needed to carry a viable and improved system of universal service forward in the twenty-first century. The clear and compelling challenge to the Joint Board and the FCC is to bring basic and advanced telecommunications to all our citizens and to ensure that our universal service system, which has accomplished so much, can continue to sustain itself."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07J-1A8.doc

* Commissioner Tate: "Every member of this Joint Board supports the principles of universal service: to promote the availability of quality services at just, reasonable, and affordable rates; to increase access to advanced telecommunications services throughout the Nation; and to advance the availability of such services to all consumers. Our recommendation today is a step towards more fully implementing those principles."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07J-1A3.doc