Arlington, Va. In a letter to the Federal Communications Commission (FCC), Congressman Todd Tiahrt (R-KS) announced his support for an interim cap on Universal Service Fund (USF) payments to competitive eligible telecommunications carriers (CETCs). Rep. Tiahrt joins dozens of Members of Congress who support the measure.
The FCC s decision on the matter, which was recommended earlier this year by the Federal-State Joint Board on Universal Service, is imminent. The FCC recently indicated that a cap is a viable option when it imposed a cap on the largest recipient of CETC support in a merger proceeding.
If the FCC fails to implement such a cap, the current rate of CETC payment growth 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 month in Washington, DC and available at www.keepamericaconnected.org, was conducted by Keybridge Research LLC and commissioned by the Coalition to Keep America Connected.
In a 10/29 letter to FCC Chairman Kevin Martin, Rep. Tiahrt writes of his support for full implementation of the interim cap on CETCs. He writes:
According to recent congressional testimony, examination of USF program revenue flows, since 2004, show that three of the four programs (Low Income, Schools and Libraries, and Rural Health Care) have been relatively stable or declining. However the High Cost program has experienced a 31 percent increase in growth, with disbursements increasing from $3.26 billion to $4.27 billion over the four-year period.
I support the Joint Board s recommended emergency interim cap as a means to curb rapid growth of the High Cost program. I believe the FCC needs adequate time to carefully examine comprehensive reforms to the USF.
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), Jeff Fortenberry (R-NE), 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.
