Coalition To Keep America Connected.

Washington, D.C., January 6, 2006 -- The Coalition to Keep America Connected today unveiled their 2006 agenda, which calls on Congress and the Federal Communications Commission (FCC) to foster a policy environment that will ensure all consumers have access to affordable telecommunications services and the latest technologies - no matter where they live. The Coalition identified a set of principles for which its members will advocate as policymakers move forward with a rewrite of the Communications Act.

The top three principles include: (1) reforming universal service that ensures consumers are able to receive the latest technologies at affordable prices; (2) restructuring intercarrier compensation so that all carriers pay to use the network of another; and (3) providing non-discriminatory access to programming and networks so consumers have access to affordable content that others might provide.

In doing so, the Coalition argues, Congress will ensure all consumers - no matter where they live - will have access to the latest technologies and services at prices that are fair and affordable.

"Our priorities are integral to the continued deployment and maintenance of telecommunications network infrastructure that delivers the advanced telecommunications services upon which consumers rely to meet their economic, security and entertainment needs," said Coalition representative Shirley Bloomfield, vice president of government affairs and association services at NTCA. "The Coalition urges policymakers to consider these principles as they seek to reform our nation's communications laws."

The Coalition's priorities are:

Universal Service -

General Issues:
- The Universal Service Fund must continue to be an industry funded mechanism, and neither supported through general tax revenues nor subjected to the federal Anti-Deficiency Act.
Contribution Issues:
- The base of contributors must be expanded to include all providers utilizing the underlying infrastructure, including but not limited to all providers of 2-way communications regardless of technology used.
- Support must be made available for the cost recovery needs of carriers deploying broadband capable infrastructure.
- The contribution methodology must be assessed on all revenues or a revenues hybrid that ensures equitable and nondiscriminatory participation.
- The regulatory authority to modify the scope of contribution obligations as technology evolves must be clarified and strengthened.
Distribution Issues:
- Support must be used to construct, support, and maintain networks to benefit all consumers and must not be voucher, auction, or block grant based.
- Support must be based upon a provider's actual cost of service.
- Support must not be used to artificially incent competition.
- The rural and non-rural fund distinctions must be maintained.

Intercarrier Compensation -

Carriers must be compensated for all communications traffic utilizing their networks.
All service providers must identify their traffic to discourage arbitrage and uncompensated phantom traffic.
Appropriate transitions to new intercarrier compensation rules are necessary to ensure continued access to quality/affordable communication services in rural areas.

Network Access/Interconnection -

All providers must continue to have the obligation to allow other providers to interconnect with their networks.
Default rates, terms, and conditions for access to and use of network facilities must be maintained as technology evolves.
Carriers must have non-discriminatory access to the Internet backbone network.

Video Content -

Providers must have non-discriminatory access to video content at reasonable and non-discriminatory rates, terms, and conditions regardless of the distribution technology used.
Non-disclosure, tying, and exclusive programming agreements regarding rates must be prohibited.

"These priorities are essential to the nation's ability to sustain our telecommunications network infrastructure, which creates jobs and economic development opportunities that contribute to the health and well-being of all our communities," Bloomfield said. "It is critical that Congress and the FCC codify policies that will ensure the integrity of our telecommunications network for businesses throughout the country and for all consumers, no matter where they live."

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The Coalition to Keep America Connected is dedicated to ensuring that all consumers have access to affordable telecommunications services and the latest technologies-no matter where they live. The effort is organized by four rural telecom associations, whose memberships include 700 small and midsize communications companies. Together these companies serve millions of consumers and 40% of the landmass across America. Visit us at www.keepamericaconnected.org.