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AFFORDABLE TELECOM COULD COST WIRELESS PLENTY OF MONEY

WASHINGTON-After eight months of wrangling, the Federal-State Joint Board released its proposal Nov. 7 to ensure affordable telecommunications services to all consumers, including hospitals, libraries and schools. At first blush, it looks like wireless operators may be paying in to a multibillion-dollar universal-service fund for years without being able to draw from it. The Federal Communications Commission will put the recommendations under consideration, which should include a public-comment period, until May 8, when it must adopt a finished order.

According to the recommendation, the criteria for receiving universal-service support includes being a common carrier and offering all of the services inherent to a common carrier. However, the board also recommended that all telecommunications carriers that provide interstate services would have to contribute to the universal service fund, the amount of which would depend on a carrier’s gross intra- and interstate revenues net of payments made to other carriers for service.

In light of this, it looks like cellular, paging, personal communications services, enhanced specialized mobile radio services and private radio service providers could be contributing to the fund, many without any hope of possible access to the coffers until such a time as they petition the state utilities commissions to become a local exchange carrier.

FCC Chairman Reed Hundt said there was no discrimination against wireless carriers and assured the industry it would be able to take advantage of cost-reimbursement.

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