Rural Telco Witness Examines the Future of Universal Service

Rural Telco Witness Examines the Future of Universal Service

PRESS RELEASE
FOR IMMEDIATE RELEASE

Contact:
Donna L. Taylor                  Aaryn Slafky
Public Affairs Manager               Communications Director
703-351-2086                  703-351-2087
dtaylor@ntca.org                  aslaky@ntca.org

Rural Telco Witness Examines the Future of Universal Service

June 19, 2002, Arlington, Va.- In a testimony before the United States Senate Committee on Commerce, Science & Transportation, National Telecommunications Cooperative Association (NTCA) member Don Bond, expressed deep concern with an unending string of Federal Communications Commission (FCC) regulations and court decisions that may be putting the national universal service system at great risk.

Bond, the third-generation president of Public Service Telephone Company in Reynolds, Georgia, appeared before the committee on behalf of NTCA, and the National Rural Telecom Association, the Organization for the Promotion and Advancement of Small Telecommunications Companies, the Western Alliance, and the Independent Telephone & Telecommunications Alliance.

Noting, "universal service is the cornerstone of our nation's telecommunications policy," Bond emphasized the fact that Congress must weigh in to stem the emergence of "an unending string of FCC regulations and court decisions that are placing our national universal service system at great risk." "Rural America's communications systems must not be forced into an economic crisis through [such] regulatory and judicial actions," Bond continued.

Acknowledging that the committee had convened the hearing to focus on the FCC's open proceeding to consider a plan that would relieve long distance carriers of their statutory responsibility to help sustain the universal service system, Bond remarked that the plan was inconsistent with current law which mandates this responsibility. Dismissing the plan that was put forth by AT&T, MCI and others, Bond suggested that the FCC should instead be giving serious

consideration to expanding the pool of contributors to ensure that all providers of
interstate services are supporting universal service as the law envisions. He also noted that the current "safe harbor" granted to wireless carriers was neither longer necessary nor fair. "We all should pay our share," he stated.

Bond also raised the issue of how additional carriers qualify for universal service support and the basis on which they are supported once they qualify. Pointing to the fact that states are often granting universal service eligibility to new carriers with far more emphasis on competitive issues than universal service and public interest considerations, Bond suggested the system is facing unprecedented pressures. He also stated that these pressures are being compounded by FCC regulations that provide support to such carriers that are based on the costs of incumbent carriers rather than on the costs of the new designees.

"Considering the world we live in today, we believe there can be no denying the critical role universal service plays in ensuring the future of our nationwide integrated network - a network that has been proven again and again to be so critical to our national and economic security. Thus, we call on the Congress to work with us . . . to once again sustain the nation's commitment to this important national policy," Bond concluded.
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NTCA is a nonprofit association representing 550 locally owned and controlled telecommunications cooperatives and commercial companies throughout rural and small-town America. NTCA provides its members with legislative, regulatory and industry representation; meetings; publications and educational programs; and an array of employee benefit programs. Visit us at http://www.ntca.org.

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