Arlington, Va., July 10, 2007- In the latest sign of building congressional support for immediate action to protect the Universal Service Fund (USF) program, Congressman Robert Wexler (D-FL) and Congresswoman Barbara Cubin are urging the Federal Communications Commission (FCC) to implement a temporary cap on USF payments to competitive eligible telecommunications carriers (CETCs). Earlier this year, the Federal-State Joint Board on Universal Service recommended the imposition of a cap to control rapidly accelerating payments to CETCs, payments that threaten the financial integrity of the USF program.
Wexler wrote to FCC Chairman Kevin J. Martin on July 6. "I am concerned that without an interim solution, my constituents will continue to face rising phone bills due to the significant recent growth in the Universal Service Fund (USF). It is my understanding that much of the growth is attributable to subsidies for wireless and other 'competitive' carriers," wrote Wexler who noted that "funding for incumbent carriers, which is already capped, has remained flat since 2003." Wexler added: "Consumers are paying for these increases in their bills for voice service, and I believe that astronomical increases will soon create a consumer backlash against this valuable and important program unless the USF is significantly reformed. An interim cap will give the Commission time to adopt comprehensive USF reform."
Cubin's July 10 correspondence to Chairman Martin states, "I urge you and your colleagues to impose an interim cap on Universal Service support for competitive carriers and to proceed as quickly as possible down the path to comprehensive reform of the program."
Senators Charles E. Grassley (R-IA), Robert P. Casey (D-PA), E. Benjamin Nelson (D-NE), and Congressmen Edolphus Towns (D-NY), Eliot Engel (D-NY) and Vito Fossella (R-NY) all wrote to the FCC in recent weeks expressing their support for the interim cap on CETCs.
The Coalition to Keep America Connected supports the proposed interim cap on CETCs based upon 2006 funding.
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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.
