HOUSE SMALL BUSINESS COMMITTEE TAKING ACTIVE LOOK AT USF
Careful not to step on the toes of the House Commerce Committee, House Small Business Rural Enterprise Subcommittee Chmn. Graves (R-Mo.) said he would be working with Commerce Committee Chmn. Tauzin (R-La.) as they examined the problems and potential solutions for the Universal Service Fund. After a subcommittee hearing Thurs. that focused mainly on eligible telecom carrier (ETC) designation, Graves said he had many concerns about the fund -- particularly how it was applied to rural small businesses -- and said he would work with Tauzin and the Commerce Committee as each panel examined USF issues. The House Telecom Subcommittee held its own hearing on USF issues Wed. (CD Sept 25 p1).
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
Graves said the Rural Enterprise Subcommittee could examine issues that were too narrow for the scope of the Commerce Committee. “We'll be a part of the process,” he said. The hearing featured testimony from FCC Comr. Abernathy, chmn. of the Federal-State Joint Board on USF. Abernathy told Graves that the Joint Board was likely to have a first set of recommendations on USF reform by the end of the year or perhaps Jan. focusing on ETC status. The recommendations could include FCC guidelines for the state PUCs that authorize ETC designations.
Abernathy told reporters after the hearing that court rulings clearly stated that the FCC couldn’t collect USF funds on intrastate phone calls and that legislation would be required if the Commission were to take that approach. However, she said a connection or number-based approach to USF collection might comply with the court rulings and eliminate the need for legislation.
Graves said he had many concerns about USF, including the states’ role. “The problem is you have 50 states with 50 different criteria,” he said. He said state oversight didn’t tend to be as stringent when states weren’t “writing the check.” Graves also said he was concerned that competitive telecom companies were being treated with different standards in regard to USF. “I'm concerned that the explosion of services will drain down the USF,” he said.
The hearing Thurs. was the 2nd of 3 events in Congress this week on USF. Today (Fri.), the Progress & Freedom Foundation will host a seminar on USF at noon in Rm. 2105, Rayburn Bldg. Speakers will include Nanette Thompson, Alaska PUC Comr. and state chmn. of the Joint Board; Matt Brill, senior legal adviser to Abernathy; Kathryn Brown, Verizon senior vp.; John Stanton, Western Wireless chmn.; John Rose, OPASTCO Pres.