The Mich. PSC wrote Senate Communications Subcommittee Chmn. Burn...
The Mich. PSC wrote Senate Communications Subcommittee Chmn. Burns (R-Mont.) to defend itself from what it called “mischaracterizations” presented by Robert Orent of Hiawatha Communications in Mich. at an April 2 hearing on the universal service fund (USF) (CD…
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April 3 p1). The PSC said Orent, who represented rural ILECs, made “vague and unsubstantiated claims” on the role of the agency and other state PUCs in designating eligible telecom carrier (ETC) status for USF. Orent objected to the PSC’s granting ETC status to competitive carriers on the ground that that contravened Congress’s intent in the Telecom Act. “The statutory directives of the [Telecom Act] clearly include both promoting competition and preserving universal service,” the PSC said. “To the extent that competitive carriers help to drive down the costs of deploying telecommunications services that are eligible for support, the burden of the USF can be alleviated.” The agency defended itself for not establishing an intrastate USF, saying it significantly studied the issue and found, through public comment, that there was no need for a statewide USF. It also said Orent’s statement that state PUCs viewed USF as “free money” was “not supported by the facts.” The PSC said Mich. was a “net payer” into the USF, meaning Mich. ratepayers contributed more into USF than Mich. companies received from it. The letter, dated April 22, was signed by all 3 Mich. PSC comrs., including David Svanda, who also is pres. of NARUC, and Robert Nelson, NARUC Telecom Committee chmn.