Coalition To Keep America Connected.

Washington, D.C., December 16, 2005 -- The Coalition to Keep America Connected today expressed concern with legislation introduced by Sens. James DeMint (R-S.C.) and John Ensign (R-Nev.) and warned the bill ultimately would led to higher phone bills and decreased network investment. The legislation, mirrored after the proposals offered by the Progress and Freedom Foundation, contains the same six fundamental flaws the Coalition outlined in a letter sent earlier this month to members of the House and Senate Commerce committees.

The legislation, titled the Digital Age Communications Act (DACA), fails to meet the critical objective of ensuring all consumers have access to affordable telecommunications services and the latest technologies-no matter where they live.

"While we appreciate the various proposals policymakers are putting forth to update our telecom laws, we are alarmed by the Universal Service Fund provisions contained in the DACA bill and their potential effect on consumers everywhere," stated Coalition Representative Shirley Bloomfield, vice president of government affairs and association services at NTCA.

The coalition pointed to several flaws in the legislation that threaten rural telecom development and could ultimately rob rural consumers of their ability to access affordable advanced telecommunications technologies. Of particular concern to the coalition is an arbitrary cap on the High-Cost Universal Service Fund.

Among other concerns cited by the coalition are:

the failure to embrace universal service funding for broadband deployment;
state block grants for USF distribution;
telecom goals that do not mesh with the priorities of the American people;
federal and state jurisdiction recommendations that are not in line with current and recent legislative effort; and
a lack of recognition of the real-world economics of telecommunications networks.

"Funding for advanced infrastructure that is broadband-capable is critical to the continued economic development of rural America, and our telecommunications network plays a vital role in bringing those services to consumers everywhere," Bloomfield said.

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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.