Coalition To Keep America Connected.

Washington, D.C., May 25, 2006 -- Support to permanently exempt the Universal Service Fund (USF) from the Antideficiency Act (ADA) is continuing to build in the Senate as S.241 adds another co-sponsor, Sen. Larry Craig (R-Idaho). Sen. Craigs support brings the total number of co-sponsors for the legislation to 52. S. 241 was first introduced on Feb. 1, 2005, by Sens. Snowe (R-Maine), Rockefeller (D-W.V.), Stevens (R-Alaska) and Inouye (D-Hawaii). In addition to the support of a 52nd co-sponsor, the coalition sees further momentum building as a second telecommunications finance industry leader, CoBank, has sent a letter to Sens. Stevens and Inouye urging passage of S.241 this year.

CoBank, a member of the Coalition to Keep America Connected, addressed the financial uncertainty this issue brings to investment in rural Americas networks. From a lender perspective, uncertainty relating to the USF and the potential application of the Anti-Deficiency Act makes decisions more challenging. Further it creates confusion and uncertainty both with the communications entity and their lender, CoBank Senior Vice President of the Communications Division Rob West stated. The coalition is in agreement with CoBank and is on the record as stating that the bureaucratic cloud hanging over the USF program is spreading to the financial sector, which is affecting the availability of capital for all telecommunications providers.

Click here for copy of CoBank's letter.

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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.