Arlington, Va. – Congressman Jeff Fortenberry (R-NE) recently joined dozens of Members of Congress in urging the Federal Communications Commission (FCC) to immediately implement an interim cap on Universal Service Fund (USF) payments to competitive eligible telecommunications carriers (CETCs).
Failure to apply such a cap could jeopardize the entire USF program and adversely impact millions of consumers who depend on the USF to ensure affordable access to telecommunications services. A major new study finds that more than 7 million economically vulnerable consumers in rural America could be forced to forego basic phone and other telecommunications services if skyrocketing USF payments to CETCs, which are primarily wireless companies, result in substantial reductions in support to rural wireline providers. The study, released last week in Washington, DC and available at www.keepamericaconnected.org, was conducted by Keybridge Research LLC and commissioned by the Coalition to Keep America Connected.
At the policy event last Monday, FCC Commissioner Deborah Taylor Tate stated that a decision on the interim CETC cap, which was recommended earlier this year by the Federal-State Joint Board on Universal Service, is imminent.
In a 9/27 letter to FCC Chairman Kevin Martin, Rep. Fortenberry states his support for full implementation of the interim cap on CETCs. He writes:
“These service providers are expanding their operations in areas with existing wire line and wireless services, and the further expansion of this portion of the Universal Service Fund would be to the detriment of those wire line providers. In addition, the costs paid to wireless service providers are based on the false assumption that wireless services and wire-line services have the same structural costs.”
Other members of Congress who have written to the FCC in support of the proposed interim cap on CETCs include: Sens. Bob Casey (D-PA), Tom Coburn (R-OK), Larry Craig (R-ID), Charles Grassley (R-IA), Chuck Hagel (R-NE), Tim Johnson (D-SD), Mary Landrieu (D-LA), Ben Nelson (D-NE), John Thune (R-SD) and Reps. Barbara Cubin (R-WY), Lloyd Doggett (D-TX ), Eliot Engel (D-NY), Vito Fossella (R-NY), Baron Hill (D-IN), Steve King (R-IA), Collin C. Peterson (D-MN), George P. Radanovich (R-CA), Mike Rogers (R-MI), Stephanie Herseth Sandlin (D-SD), Ike Skelton (D-MO), Adrian Smith (R-NE), Zack Space (D-OH), Lee Terry (R-NE), Edolphus Towns (D-NY) and Robert Wexler (D-FL). Additionally, more than 800 telecommunications providers from 47 states recently sent a petition to the FCC and Members of Congress in support of the cap.
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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 more than 800 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.
