USTelecom Outlines Steps toward Comprehensive Reform of the Universal Service High Cost Support Mechanism
WASHINGTON, D.C. – Today, in comments filed before the Federal Communications Commission, the United States Telecom Association (USTelecom) recommended several steps for the Commission to take to comprehensively reform the high cost support mechanism for universal service.
“Today’s communications industry is extremely dynamic and it’s critical that the universal service system adapts to keep pace with the dramatic changes driving the sector,” said USTelecom President and CEO Walter B. McCormick Jr. “This proceeding is critical to ensure that the right framework is in place to help sustain the future for universal service. The Commission must act quickly and decisively to increase the efficiency and effectiveness of funding for high cost universal service support.”
USTelecom recommends taking following steps in phases to reform the system:
- Cap the growth of high cost support for competitive ETCs;
- Gradually remove access support from support provided to competitive ETCs;
- Phase out support for multiple wireless competitive ETC lines per household;
- Consider end user rates in the calculation of high cost support for fixed line ETCs;
- Implement competitive processes such as reverse auctions to reduce the number of wireless competitive ETCs to one per geographic area and to determine their level of support; and
- Gradually shift support for wireless CETCs to a project basis to extend wireless coverage.
The comments explain that as targeting of high cost support is improved, funds should be redirected to the highest priorities. Scarce high cost universal service dollars should better target high cost wire centers within large study areas. The FCC should begin the transition to project-based support to build out service in areas lacking wireless coverage. To further ensure that consumers receive the most benefit from high cost support, all ETCs receiving support should adhere to strengthened federal carrier of last resort requirements.
The United States Telecom Association, USTelecom, is the premier broadband trade association representing service providers
and suppliers for the telecom industry. USTelecom represents companies offering a wide range of services across the communications
platforms, including voice, video and data over local exchange, long distance, wireless, Internet and cable services.