WASHINGTON-The Federal Communications Commission has decided to put off deciding until late 2004 whether wireless carriers must offer equal access to all long-distance service providers to be eligible for universal-service subsidies.
“The Federal-State Joint Board on Universal Service was unable to reach agreement on whether equal access should be added to the list of supported services and made no recommendations regarding this service. Because critical arguments in favor of adding equal access are related to the eligible telecommunications carrier process and calculation of support for competitive ETCs, both of which are within the scope of the Portability Proceeding, we make no decision regarding equal access at this time,” said the FCC.
The wireless industry, which is fighting rural incumbent carriers on universal-service issues, was pleased. “We think the FCC made the right choice in deferring the decision. It’s only appropriate that this issue be dealt with as part and parcel of the larger Portability Proceeding,” said Travis Larson, spokesman for the Cellular Telecommunications & Internet Association.
The decision was split in such a way that it is hard to predict which way the commission will go, but an investment research firm predicted that whatever the eventual decision is, wireless carriers will likely end up losing some of the subsidies they now enjoy.
“We continue to believe that the five-commissioner FCC, when it addresses the broader eligibility and cost issues, will take steps that will at least slow the growth in universal-service funding going to CETC,” wrote David Kaut of Legg Mason Equity Research in a note to investors. “FCC Commissioners Kathleen Abernathy and Jonathan Adelstein, who noted that several parties had ‘persuasively argued’ that CETCs should receive USF support based on their own costs. Because CETC costs are generally lower than rural local exchange carrier costs, this change would have the effect of lowering the USF support for CETCs. FCC Commissioner Kevin Martin has also made noises about reining in CETC access to USF.”
