Arlington, Va., July 17, 2007 - The Coalition to Keep America Connected today sent to Congress and the Federal Communications Commission (FCC) a petition signed by more than 800 telecommunications providers in 47 states urging adoption of the recommendation by federal and state experts to place a temporary cap on payments from the Universal Service Fund (USF) program to competitive eligible telecommunications carriers (CETCs).
The USF ensures reliable access to affordable telecommunications services for millions of U.S. consumers in high-cost to serve areas. Between 2002 and 2006, however, USF payments to CETCs increased by more than 100 percent annually. This exploding growth threatens the financial integrity of the entire USF program, which also provides support for schools, libraries and rural health care. The temporary cap is recommended by a panel of federal and state regulators and is needed to avert a crisis that could affect millions of consumers.
The petition reads in part: 'As companies dedicated to providing telecommunications services to rural America, we, the undersigned, strongly support the recommendation of the Federal-State Joint Board on Universal Service that the Federal Communications Commission temporarily cap payments from the high-cost Universal Service Fund program to competitive eligible telecommunications carriers (CETCs). Such action is needed urgently to stabilize the Universal Service Fund, the very existence of which is now threatened.'
The petition further states: 'The unsustainable increases in support payments to CETCs have caused rapid growth of the Universal Service Fund, and must be brought under control to protect everyone who benefits from our country s robust network. Failure to act could result in the collapse of the Universal Service Fund.'
The complete text of the petition follows this press release.
'The people who live in local communities and who work each day to provide rural America with telecommunications services support the temporary cap recommended by the Joint Board,' said Kelly Worthington, spokeswoman for the Coalition. 'The hundreds of companies that have signed this petition understand that the failure to implement a temporary cap on payments to CETCs could cause the entire USF program to collapse, and the consequences would be devastating for rural telecommunications consumers.'
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Petition Text
As companies dedicated to providing telecommunications services to rural America, we, the undersigned, strongly support the recommendation of the Federal-State Joint Board on Universal Service that the Federal Communications Commission temporarily cap payments from the high-cost Universal Service Fund program to competitive eligible telecommunications carriers (CETCs). Such action is needed urgently to stabilize the Universal Service Fund, the very existence of which is now threatened.
The Universal Service Fund has been instrumental in achieving remarkable success in ensuring affordable access to, and the continued upgrading of, the telecommunications network, which carries wireline, wireless, IP-services, and other customer-driven applications to consumers everywhere. Public policy should seek to preserve and expand this achievement. The unsustainable increases in support payments to CETCs have caused rapid growth of the Universal Service Fund, and must be brought under control to protect everyone who benefits from our country s robust network. Failure to act could result in the collapse of the Universal Service Fund.
We urge the Federal Communications Commission to implement the recommendation of the Joint Board. Furthermore, we call on members of Congress to endorse this action as an indispensable reform needed to preserve the Universal Service Fund and ensure continued access to critical telecommunications services.
View a listing of the petition signatories.
