WASHINGTON-Wireless and wireline carriers serving rural America hailed passage of language in the Consolidated Appropriations Act that prohibits the Federal Communications Commission from restricting universal-service subsidies to primary lines.
“Now that the primary line restriction is off the table, we look forward to working with the Hill and the FCC on how best to bring the benefits of universal service and healthy and fair intermodal competition to consumers in rural America,” said Mark Rubin, director of federal government affairs for Western Wireless Corp.
“We strongly believe that forcing a consumer to choose one line is not the appropriate means to control the growth of the universal-service fund,” said Michael Brunner, chief executive officer of the National Telecommunications Cooperative Association, which represents primarily rural wireline phone companies.
Under a primary-line restriction, one carrier could receive support for only one household instead of the current system, where carriers receive support based on how many lines are served. This system has allowed wireless carriers to receive support for serving rural customers even if the customer continues to use landline service in combination with wireless service.
The Telecommunications Act of 1996 allowed universal-service support to become portable so the carrier that served the customer received the support for serving that customer.
In an effort to protect the growth of the universal-service fund, the Federal-State Joint Board on Universal Service in February recommended that support be limited to one primary line. The FCC had one year to act on the recommendation but the language passed over the weekend and included in the FCC spending bill prohibits the commission from accepting the recommendation.
Rural local exchange carriers have been fighting against wireless carriers for universal-service support as both the amount of subsidies and number of carriers receiving support have increased. While rural LECs and wireless carriers disagree on most universal-service policy, they agree that the primary-line restriction is a bad idea.
The primary-line restriction is not a new idea. As the FCC developed the universal-service rules in the wake of the passage of the telecom act, there was a great debate about whether support should be given for second lines. It was finally decided that support should be granted for additional lines to spur the take rate on broadband services. The theory was if rural customers had access to dial-up service, they eventually would want broadband service.
Rural carriers were not as successful in protecting the universal-service fund from the Anti-Deficiency Act.
The Organization for the Promotion of Small Telecommunications Companies said Monday it would continue to work to have Congress pass language that would allow the Universal Service Administrative Co. to disburse funds even if it does not yet have the funds on hand.
“OPASTCO is ready to work with whatever parties are interested in addressing USF and the ADA. We must ensure that rural consumers and the telephone companies that serve them are not harmed by any changes made to how the USF is administered,” said OPASTCO President John Rose.USAC is a quasi-governmental organization created by the FCC to administer universal-service subsidies.
