Arlington, Va., July 18, 2007- Three members of Congress have joined their colleagues announcing their support for the proposed temporary cap on Universal Service Fund payments to competitive eligible telecommunications carriers (CETCs). In letters sent recently to Federal Communications Commission (FCC) Chairman Kevin J. Martin, Senators Larry Craig (R-ID), Chuck Hagel (R-NE), and Representative Baron P. Hill (D-IN) endorsed the recommendation of the Federal-State Joint Board on Universal Service. Rapid growth in USF payments to CETCs threatens the financial integrity of the USF program. The FCC is expected to make a decision in the coming months on the Joint Boards recommendation.
In their July 16 letter to Chairman Martin, Senators Craig and Hagel state: "We write to request swift action by the Commission to impose a temporary, emergency cap on universal service funding for competitive eligible telecommunications carriers (CETCs). This action, recently recommended by the Federal-State Joint Board on Universal Service, would represent an important first step toward comprehensive reform." In his July 17 letter to Martin, Representative Hill writes: "As a Member of Congress who represents a very rural district that depends on the Universal Service Fund (USF), I support the recent recommendation by the Federal-State Joint Board on Universal Service to temporarily cap USF assistance to competitive eligible telecommunication carriers (CETCs)."
Representative Hill continues, "As you know, CETCs drew roughly $1 million from the USF High-Cost Fund in 2000. Today, CETCs withdraw approximately $1 billion from the High-Cost Fund. I am concerned that districts like mine will be adversely affected if Universal Service reform is not enacted soon, and temporarily capping assistance to CETCs will provide Congress with enough time to act."
Senators Bob Casey (D-PA), Charles Grassley (R-IA), Ben Nelson (D-NE), and Representatives Barbara Cubin (R-WY), Eliot Engel (D-NY), Vito Fossella (R-NY), Lee Terry (R-NE), Edolphus Towns (D-NY) and Robert Wexler (D-FL), and have all written to the FCC in support of the proposed interim cap on CETCs. Yesterday, more than 800 telecommunications providers from 47 states 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 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.
