NTCA: FCC Commissioner Calls for Sweeping Regulatory Reform

[SOURCE: Telecommunications Online, AUTHOR: Bob Wallace]
The U.S. lacks a broadband strategy, is operating with a broken inter- carrier compensation system and a universal service fund in need of fast reform, said FCC Commissioner Michael Copps, in his keynote address at the National Telecommunications Cooperative Association (NTCA) annual conference. Echoing concerns of other speakers at the NTCA event, Copps voiced concern that the goals of urban regions and legislators are taking precedence of the goals of rural telcos, creating a dangerous gap that appears to be growing. "If high-speed broadband is permitted to become a primarily urban phenomenon, the digital gap will grow wider, [resulting in] rural America being worse off," warned the FCC commissioner. Copps called for focused reform of the Universal Service Fund, the system which helps rural telcos provides core communications services to their typically far flung constituents. "A broader base is needed to make the USF more viable," said Copps in reference to the need for all providers to contributed to the fund based on revenues. "I predict 2006 will be the year when action will be taken on the contribution methodology. We will see reform that will put us on firming footing." Alternative methodologies have been discussed, driven largely by two issues that have created huge challenges to the fund. The first is the classification of some operators' offerings as information services as opposed to telecommunications services. The second is "the growth if IP services and any distance pricing plans," according to Copps. "The revenue-based approach is only equitable if people who use the system pay for the system," said the FCC Commissioner, who added he won't commit to a numbers or connections approach at this time.
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