WASHINGTON-Sen. Conrad Burns (R-Mont.), often an advocate for rural America and former chairman of the Senate communications subcommittee, celebrated the tenth anniversary of the Telecommunications Act of 1996 last week by introducing a universal-service reform bill that basically leaves wireless out in the cold.
Burns dubbed his bill the Internet and Universal-Service Act of 2006-or NetUSA 2006.
The bill essentially requires wireless carriers to serve the exact same footprint as wireline carriers in order to receive eligible telecommunications carrier status. Receiving eligible telecommunications carrier status is a necessary step in receiving universal-service funds.
However, wireless carriers’ spectrum licenses are determined by population and not according to rural wireline service territories
Thus, wireless carriers would be largely locked out of the universal-service fund under Burns’ bill.
“We need to ensure universal service is distributed where it’s needed. In revising universal service to adapt to the changing technology landscape, it’s essential to maintain commitment levels to universal-service programs to foster the continued availability of telecom and advanced services in rural communities and to strengthen and improve the overall fund,” said Burns on the Senate floor.
The purpose of the legislation is to make the universal-service system “fair and comparable. The rules should be consistent for everyone,” said a Senate source who supported the legislation. The source asked not to be named.
New technologies can only receive support “if they can comply with the rules,” said the source.
Unsurprisingly, the wireline industry gushed over the bill.
“Sen. Burns took a step forward in helping to shape the debate on efforts to update our telecom laws and preserve and modernize the nation’s universal-service program,” said Walter B. McCormick Jr., president and chief executive officer of the United States Telecommunications Association.
Mid-sized wireline carriers were also pleased.
“The Burns bill acknowledges the importance of incenting broadband. This is really necessary to regain America’s competitive status against other countries,” said David Zesiger, ITTA executive director.
ITTA represents mid-sized wireline carriers with 50,000 to 3 million access lines.
The Coalition to Keep America Connected-a group of rural wireline associations-liked the way the bill would require Voice over Internet Protocol providers to pay into the universal-service fund.
“We are particularly pleased with provisions in the bill that would broaden the base of contributors into the universal-service fund to ensure contributions are assessed in a fair and competitively neutral manner while limiting future growth in the fund by tightening up accountability on competitive ETCs, which account for the vast majority of growth in the fund,” said John Rose, president of the Organization for the Promotion and Advancement of Small Telecommunications Companies.
A wireless industry source, who wished not to be identified, was not as positive.
“Sen. Burns deserves much credit for taking this on but the fact that the bill was introduced with no cosponsors might indicate concerns members have with provisions that are viewed as not being competitively neutral.”
CTIA refused to express similar concerns.
“As a major contributor to the universal-service fund, the wireless industry commends Sen. Burns for his leadership role on this issue,” said the wireless trade association.
When he was chairman of the Senate communications subcommittee, Burns held several closed-door sessions with all sectors of the communications industry to discuss universal-service reform.
Universal service is expected to be a major component of any rewrite of the telecom act.
