WASHINGTON-The Federal Communications Commission has told states that universal-service subsidies must be available to all eligible telecommunications carriers not just incumbent local exchange carriers.
In addition, a consumer group said last week it will convene a forum on the future of the universal-service program.
Western Wireless Corp. had urged the FCC in 1998 to pre-empt a Kansas law that said only ILECs had the ability to collect from the universal-service fund. Kansas has since changed its law, but the FCC said Aug. 28 it was offering guidance to other states to let them know the agency “would be concerned about a universal-service fund mechanism that provides funding only to ILECs.”
“Western is very pleased. It sets a very strong precedent and guidance. The FCC has put all states on notice that universal service must be portable,” said Michele Farquhar, Western’s outside counsel, noting that Western did not withdraw its petition in hopes the FCC would provide guidance to other states.
This is the second time this month the FCC has taken the opportunity to provide guidance on universal-service issues even though it did not act on the substance of the petition, or in the case of the Kansas situation declared Western’s petition moot.
On a related front, the Consumer Energy Council of America is developing a universal-service forum that will examine, among other issues, whether the definition of universal service should be expanded.
The forum is expected to comprise 50 public and private sector representatives who will debate key questions about the future of universal service. A preliminary list of participants did not list any representatives of the wireless industry but CECA said it wanted participation from “all platforms.” Kathleen Wallman, chief executive officer of Wallman Strategic Consulting and chair of the universal-service forum, blamed the lack of wireless participation on Washington’s typically slow August and said she fully expects wireless will participate.
A consensus report is expected to be developed sometime early next year after at least three plenary sessions.
