Coalition To Keep America Connected.

Washington, D.C., June 21, 2006 -- The Coalition to Keep America Connected released the following statement today in response to the U.S. House of Representatives Energy and Commerce Subcommittee on Telecommunications and the Internet hearing "Universal Service: What are We Subsidizing and Why? Part 1: The High-Cost Fund."

"The Universal Service High-Cost Fund program is not a subsidy; it is a high-cost recovery mechanism that ensures consumers living in rural and remote areas, where the costs to provide telecommunications services are significantly higher than the national average, have the same affordable access to our nations telecommunications network that consumers in urban and suburban areas of our country enjoy.

"As in all parts of our country, telephone networks require ongoing maintenance, and with the accelerated consumer demand for new services, rural telephone companies must meet the same technological capabilities available in our more densely populated parts of the country. Our nations network would be weakened if the 40% of our countrys landmass that is served by small and mid-sized telephone companies could only send and receive certain types of telecommunication.

"The Universal Service High-Cost Fund program also ensures that consumers in high-cost areas receive services from carriers who have made a commitment to provide reliable voice services, 9-1-1, alternate power supplies to ensure continued service during outages, access to their choice of long distance provider, and other service requirements.

"For many consumers living in high-cost areas of our country, telecommunications service would not be affordable without the High-Cost Fund. Our nations 94% telephone penetration rate, one of the highest in the world, attests to the success of the Universal Service High-Cost Fund.

"As examples, without the High-Cost Universal Service Fund program, the average consumer living in rural Michigan would pay an additional $160.26* each year to cover the actual costs of their telephone service; in Texas, rural consumers would pay $151.01/year; in Pennsylvania, rural consumers would pay $43.06/year; in Nebraska, rural consumers would pay $235.41/year; in Illinois, rural consumers would pay $117.99/year; in New York, rural consumers would pay $57.74/year; and in Virginia, rural consumers would pay $51.33/year. "

*Source: NECA and USAC

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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.