FCC should do more to promote access to wireless services by rura...

specific, predictable and sufficient.” As for wireless, Adelstein said universal service shouldn’t be used to support “artificial competition from providers that don’t provide the same or better service than what consumers already receive.” He also urged changes in FCC policies that he said didn’t make sense in that area, such as allowing small carriers to get discounts in buying spectrum at auction. “This is a great idea,” Adelstein said, “but the current rule actually attributes the outside business activities of co-op board members in determining the co-ops’ eligibility for bidding credits.” Citing challenge against that pending at FCC, he said he was “taking a good hard look at this… Unfortunately, this is an example of how the FCC doesn’t always understand how co-ops in rural America work. I plan to use the full power of my office to make sure we get this rule fixed as soon as possible.” Reflecting concerns on license area size that rural carriers had raised at FCC, Adelstein said he also was concerned that large wireless license areas raised auction prices so high that rural telcos “can’t even afford to make a first bid.” In future auctions, Adelstein said he would support use of smaller wireless license areas that would better reflect rural customer bases. “In addition, we need to revisit the FCC’s build-out rules. I'm concerned that the current rules can indirectly undercut the ability of rural carriers to get access to spectrum in their own neighborhoods,” he said. On universal service front, he said that although it didn’t directly support advanced services, it was key tool that laid groundwork for creating future broadband networks. “The 2 foundational pillars of the [Telecom] Act are universal service and competition,” he said. “Federal support is intended to promote universal service, not to subsidize artificial competition -- or, for that matter, to keep it at bay.” Neither of those “pillars” should be promoted at expense of other, he said. State PUCs have key role in determining if competitor is eligible for universal service support, he said. “Specifically, states must make sure that the new market entrants receiving universal service meet all the obligations required by the Act. These include providing service throughout the service area and advertising its availability.”