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KITCHEN CRITICIZES UNIVERSAL FUND IN LETTER TO CLINTON

ALEXANDRIA, Va.-In a letter sent to President Clinton, Personal Communications Industry Association President Jay Kitchen urged the administration to consider the detrimental effect of an immediate Universal Service Fund obligation on the personal communications services industry.

Kitchen said a five-year suspension from obligations should be implemented to allow new entrants to build their networks and begin competing with regional Bell operating companies and cellular incumbents.

Kitchen also pointed out the inequities involved in USF funding for the paging industry. He requested the administration support PCIA’s proposal to exempt the paging industry from contributing to the fund because paging companies cannot withdraw from it.

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