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| Press Release |
Adam J. Segal
202.422.4673 |
04/11/07 |
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LEADING CONGRESSIONAL VOICES ON USF STRONGLY OPPOSE REVERSE AUCTIONS & URGE FCC TO REJECT APPROACH
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Arlington, Va., April 11, 2007 - In a letter sent to FCC Chairman Kevin Martin yesterday, Congressmen Lee Terry (R-Neb.), Rick Boucher (D-Va.) and Chip Pickering (R-Miss.) came out strongly against Martin's proposal to use reverse auctions in determining which carriers will receive high-cost universal service fund support and urged the Commission to reject reverse auctions.
The Members, who all sit on the House Subcommittee on Telecommunications and the Internet, said using reverse auctions to disburse universal service funds would be a 'mistake' that 'threatens to cripple the availability of reliable telecommunications services to rural Americans.'
Terry, Boucher and Pickering remain concerned that the process would no longer guarantee the quality services and just, reasonable and affordable rates that are mandated by the Communications Act. As they noted in their letter, 'least cost funding incents pairing service quality levels to absolute minimums.'
The following statement was released today by the Coalition to Keep America Connected:
With this firmly worded letter from Congressmen Terry, Boucher and Pickering, it is clear that these leading policy makers recognize the value of building and maintaining a high-cost, capital-intensive network, built to meet the long-term needs of our nation.
Any system that does not acknowledge or meet the long-term nature of network investment will discourage investment and network upgrades, two of the most valuable contributions of the USF program.
Even though they compete on price, not all telecommunications providers offer the same quality of service. A reverse auction system will not create a favorable environment for the network investment that will be needed to usher next generation advanced services and applications.
Rather, the reverse auction system puts a premium on the lowest level of investment and ultimately leaves large sections of our nation at a disadvantage.
### 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. |
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