Coalition To Keep America Connected.

Washington, D.C., May 3, 2006 -- Coalition to Keep America Connected Representative and Oregon Farmers Mutual Telephone Company President Robert Williams today testified before the United States House of Representatives Committee on Small Business Subcommittee on Rural Enterprises, Agriculture and Technology during 'The Future of Rural Telecommunications: Is Universal Service Reform Needed?' The Universal Service Fund is an essential element to ensure that all Americans enjoy the benefits of a nationwide integrated communications network, and the seven principles ensure that consumers enjoy fairness, affordability and access-no matter where they live.

In his testimony, Williams urged the House to adopt six principles for universal service reform:

The Universal Service Fund must continue to be an industry-funded mechanism, and neither supported through general tax revenues nor subjected to the federal Anti-Deficiency Act.
The base of contributors must be expanded to include all providers utilizing the underlying infrastructure, including but not limited to all providers of broadband connections and all providers of voice communications, regardless of technology used. Support shall be made available for the cost recovery needs of carriers deploying broadband capable infrastructure.
The contribution methodology must be assessed on all revenues or a revenues hybrid that ensures equitable and nondiscriminatory participation.
Support must be used to construct, support, and maintain networks to benefit all consumers and must not be voucher, auction or block grant-based.
Support must be based upon a provider's actual cost of service.
Support must not be used to artificially promote competition.

Additionally, Williams addressed the Terry-Boucher Bill, H.R. 5072. Keeping fairness, affordability and access in mind, the coalition has weighed in on several aspects of the legislation.

The coalition supports:

Expansion of the pool of providers. The bill would require all providers that use telephone numbers, IP addresses or offer a network connection for a fee to the public to contribute to the fund.
Elimination of rules that allow competitors to receive support based on the incumbent carrier's costs. Requiring all Universal Service Fund recipients to receive support based on their own costs will increase program accountability, as well as reduce demand for funds.
Implementation of stricter eligible telecommunications carrier (ETC) designation requirements. The new requirements are pro-consumer and pro-public safety, such as demonstrating the ability to remain functional in emergency situations, satisfying customer service quality standards, offering local usage comparable to other communications service providers in that service territory, and meeting the newly required broadband speed requirements.

The coalition does not support:

A cap on the High-Cost Universal Service Fund. The cap will inhibit the bill's goal of 100 percent broadband deployment and is a disincentive for network investment.

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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.