Interim Cap Clears Path for Comprehensive Universal Service Fund Reform

In the wake of adopting an interim cap on payments to competitive eligible telecommunications carriers (ETCs) under the Universal Service Fund (Fund), the Federal Communications Commission says it has taken a crucial first step toward comprehensive reform of Universal Service and intercarrier compensation, two carrier compensation regimes that are directly interrelated. Such comprehensive reform is critical to ensuring the continued provision of affordable telecommunications for all Americans. The Commission's action to cap competitive ETC support, as proposed by Chairman Martin six months ago, will stabilize the Fund, enabling the Commission to now move forward expeditiously on comprehensive reform of both the universal service program and intercarrier compensation.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-281939A1.doc