Telecom and Broadband Services Industry Representatives Encourage FCC to Reject USTA’s ABC Plan

For Immediate Release                                                             Contacts: Lucy Tutwiler, CCA

September 20, 2011                                                                                             Bruce Rowe, ViaSat

Telecom and Broadband Services Industry Representatives Encourage

FCC to Reject USTA’s ABC Plan

Washington, DC – Today, representatives of a cross-section of the telecommunications and broadband services industry joined in a letter encouraging Federal Communications Commissioners to advance a genuine industry consensus about the principles that should underlie pending reform of the High-Cost universal service support mechanism.  Signatories agreed that the FCC should reject the so-called “ABC Plan” for reform advanced by incumbent local exchange carriers (“ILECs.”)

The signatories suggest the ABC Plan would misallocate USF support, undermine competition, and deprive rural consumers of the high-quality and cost-effective services offered by competitive providers and encouraged the FCC to instead consider TRUE Reform Principles outlined in the letter – Technology neutral, Revenue neutral, Universal and Economical (TRUE).  In contrast to the ABC Plan, signatories believe that the best path to reform puts the interests of consumers ahead of any industry segment and targets support in high-cost and unserved areas to the most efficient providers.

In a statement, CCA President & CEO Steven K. Berry said, “The ABC Plan blatantly favors ILECs, and the genesis of this letter confirms there is not a consensus position in the telecom world!  Instead of adopting the ABC Plan, the FCC should consider the TRUE Reform Principles outlined in our letter.  USF reform must ensure consumers have access to affordable quality service, and I hope the FCC recognizes the ABC Plan’s favoritism toward wireline companies as it continues to develop a new USF/ICC regime.”

Keven Lippert, Vice President and General Counsel of ViaSat said, “The FCC needs to reject the ABC Plan for what it is – a dangerous plan to derail innovation and competition in the marketplace by forcing 20th century technologies on rural America, largely without any competitive bidding process. The primary focus of USF reform should be on the people using and paying for these services – the American consumer.  The focus of the ABC Plan is unmistakably on eliminating competition and providing subsidies to incumbent carriers without regard to the quality of the service they provide or the price they charge the consumer.”

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