Coalition To Keep America Connected.

Washington, DC, June 30, 2006 -- A coalition representing millions of rural consumers and small businesses today expressed concern about the future of the telecommunications reform bill that recently passed the Senate Commerce Committee. The Coalition to Keep America Connected is cautious about the direction the legislation seems to be headed and remains concerned about the effects expected amendments would have if adopted on the Senate floor. 'The coalition appreciates the significant efforts put forward by Chairman Stevens to move this important telecommunications reform bill another step forward in the legislative process. However, we're disappointed the committee failed to take certain steps to strengthen the integrity of the fund,' said coalition representative and OPASTCO President John Rose.

'Reason prevailed and we succeeded in stopping a cap on the USF and a move to create a pilot project allowing states to distribute federal USF by block grants. We anticipate that these anti-consumer proposals could reemerge on the floor and intend to strenuously fight these efforts. These proposals could potentially increase telephone bills for consumers and small businesses in our nation's heartland. Capping the fund is a non-starter for us,' added Rose.

The coalition said rural consumers will benefit from the committee's work in several ways and commend Chairman Stevens and his colleagues for including language that broadens the base of universal service and permanently exempts the fund from the Anti-Deficiency Act. The coalition had hoped that the bill would require more accountability to the Universal Service Fund. The coalition indicated that it had offered a series of proposals that would have strengthened the distribution of support, especially to competitive carriers, but the proposals were not adopted by the committee. 'The coalition continues to believe that stronger ETC designation requirements and more accountability of how USF support is used is needed for the integrity of the entire program,' stated Rose.

The coalition will closely review the revised bill to determine what additional steps need to be taken as the bill moves to the Senate floor. 'We're anxious to review the bill and see what's actually in it. We look forward to working with Chairman Stevens to ensure rural consumers realize the benefits of a robust and advanced telecommunications network capable to delivering the new and exciting services all consumers want and deserve,' Rose said. The coalition vowed to remain vigilant throughout the process to ensure that rural consumers continue to have access to advanced services and technologies.

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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.