FCC Should Stabilize the USF Contribution Regime
FOR IMMEDIATE RELEASE Contact: Lucy Tutwiler
July 10, 2012 (202) 449-9866
FCC Should Stabilize the USF Contribution Regime
Washington, DC – Yesterday, in filed comments with the Federal Communications Commission (FCC or Commission), CCA – The Competitive Carriers Association urged the Commission to stabilize, clarify and simplify the Universal Service Fund (USF) regime. Today’s high contribution rates pose a serious threat to the continuation of the Universal Service program, and the FCC should take steps to ensure a broad and sustainable funding base for the future and provide greater clarity and certainty for the funds.
In a statement, CCA President & CEO Steven K. Berry said, “It is absolutely critical for the FCC to ensure the long-term stability of USF, as many competitive carriers plan to receive and depend on USF support. The current USF regime, with high contribution levels and significant administrative burdens for service providers, cannot be sustained and carriers and consumers alike should not have to bear the burden of high contribution levels or fewer choices in service providers.”
“The FCC’s USF Order released last year greatly underfunds wireless services, which seems backwards as wireless pays in three times more than it takes from the program, and consumers are increasingly using mobile services. The FCC now has an opportunity to address some of the core problems on the contribution side of USF. To do so, the FCC should broaden the contribution base to provide a more stable source of funding to alleviate the contribution burdens imposed on particular services. This will help to ensure the long-term viability of the fund, while promoting competitive parity.”
Berry continued, “All enterprise services with a telecommunications component and one-way VoIP services should be included in the funding base. These services use the same USF-funded infrastructure as other services currently included in the program, and there is no reason why they should not have to contribute to the fund as well. The Commission also should maintain a revenues-based contribution methodology but should provide greater clarity and efficiency by adopting safe harbors and fixed allocations to clarify the portion of services that are assessable as telecommunications and as interstate traffic. This will help stabilize and simplify the USF regime, and I look forward to working with the FCC on this critical issue.”
About CCA
CCA is the nation’s leading association for competitive wireless providers serving rural and regional areas of the United States. The licensed service area of CCA’s more than 100 members covers 95 percent of the nation.
