FCC Chief Pledges Loyalty To USF, Reforms

FCC CHIEF PLEDGES LOYALTY TO USF, REFORMS
[SOURCE: Technology Daily 5/15, AUTHOR: David Hatch]
FCC Chairman Kevin Martin has responded to a detailed query from Rep. Edward Markey (D-MA) regarding the regulator's positions on the multibillion-dollar universal service program that subsidizes telecommunications and Internet connections in rural and impoverished areas. Chairman Martin's response to Rep Markey's April inquiry surfaced publicly Monday. In his letter, Chairman Martin said preserving the stability of the fund "is one of the commission's most important responsibilities." He added that "the system requires fundamental reform, and I support modifying the current contribution system and moving to a more competitively and technology-neutral system." He also told Rep Markey he wants the FCC to explore "how and to what extent" the fund could assist with the deployment of high-speed Internet service in rural and low-income areas, or at least remove barriers to deployment. The chairman reiterated his support for so-called "reverse auctions," which would award subsidies to carriers agreeing to receive the lowest subsidies. He also expressed hesitancy toward subsidizing multiple carriers in high-cost rural areas because that could "lead to inefficient and/or stranded investment and a ballooning universal service fund."
http://www.njtelecomupdate.com/2007/05/fcc_chief_pledges_loyalty_to_u.html