Coalition To Keep America Connected.

Washington, D.C., March 30, 2006 -- The Coalition to Keep America Connected today praised Congressmen Lee Terry (R-Neb.) and Rick Boucher (D-Va.) for introducing universal service reform legislation that would modernize the nations vital universal service policy. Universal service is critical to ensuring all consumers continue to have access to the latest telecommunications technologies and services at prices that are fair and affordable.

The Congressmen have once again demonstrated their commitment to maintaining the integrity of the Universal Service Fund (USF), ensuring consumers everywhere can benefit from the latest communications services, said Coalition Representative and Executive Vice President of the Western Telecommunications Alliance Kelly Worthington. We applaud their leadership and their continued efforts to elevate universal service issues to the forefront of the telecom reform debate.

The coalition is especially supportive of provisions in the bill that would expand the base of contributors to the USF, ensuring contributions are technology-neutral, and by provisions that would control growth of the fund by imposing strict requirements for competitive eligible telecommunications carriers (ETCs), which account for the majority of fund growth. The coalition also supports the Congressmens efforts to ensure that universal service dollars are being used for their intended purpose, by eliminating the identical support rule. Elimination of this rule will increase program accountability by requiring all recipients to demonstrate their actual cost of service and receive universal service support based on that cost.

Obviously the legislation has been constructed to control growth in the universal service fund in an attempt to strike the political balance that may be necessary for the bill to move forward.

Provisions in the bill aimed at controlling fund size likely render a cap unnecessary, Worthington said. This legislation has the potential to aid in the continued building and maintenance of broadband-capable network infrastructure that delivers advanced telecommunications services to all consumers, no matter where they live. We look forward to working with Reps. Boucher and Terry and the entire Congress to enact policy that ensures continued access to cutting edge telecommunications services-at affordable prices-for consumers throughout America.

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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.