Coalition To Keep America Connected.

Arlington, Va., March 29, 2007 - The Coalition to Keep America Connected released the following statement today in response to complaints about the Universal Service Fund that have been lobbed by wireless phone carriers as recently as yesterday during a panel discussion at the annual CTIA Wireless trade show.

The Universal Service Fund (USF) is about an investment in a network and better future for our nation. And that funds success depends upon carriers that are committed to making investments and deploying networks in those difficult to serve areas.

This is consistent with the 1996 Telecommunications Act which set the goal of ensuring the availability of high quality services and reasonable rates, to both urban and rural Americans, regardless of the technology.

All carriers receiving USF funds must recognize that these funds are meant to be invested in a manner to inure to the benefit of all consumers.

Here are some key considerations:

Wireless is the fastest growing segment of the USF fund. In 2006, wireless competitive eligible telecommunications carrier (CETCs) received close to $1 billion in universal service support and it is forecast they will receive more than $2 billion by 2009, according to the FCC. Incumbent local exchange carriers (ILECs) growth has remained steady or declined in recent years.
Wireless carriers are subject to minimal regulations from the FCC and limited state government oversight, while ILECs receive strict federal and state oversight.
Wireless carriers continue to seek waivers to avoid implementing Emergency 911 service to Americans in many parts of the country which is critical for public safety.
Wireline (ILEC) carriers have the Carrier of Last Resort responsibility. It is largely without penalty that wireless carriers may choose to discontinue service after receiving funds for years, while wireline carriers must remain until permitted by the states or FCC to conclude providing services. As a result, there is less incentive for wireless carriers to commit to providing true investment in the network that is central to the USFs mission.
And Wireless carriers continue to argue against receiving universal service support based on their actual costs, instead petitioning to keep receiving support based on the ILECs' costs for wireline service.

The coalition is committed to strengthening the USF system to ensure it continues to provide the greatest public benefit and it is important that all carriers subscribe to this mission if they are to be trusted with the publics money.

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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.