Sponsors of legislation designed to bring more universal service ...

Smith (R-Ore.) (S-1380) and Rep. Terry (R-Neb.) (HR-1582) said while time was running out this congressional session, their bills enjoyed considerable support and could find passage as a rider to another legislative vehicle. Terry said House Commerce Committee Chmn. Barton (R-Tex.) was now a co-sponsor of the bill and Smith said Senate Commerce Committee Chmn. McCain (R-Ariz.), an original co-sponsor, was “pushing aggressively” to have the measure moved through the Senate. The bills are designed to redistribute the so-called “non- rural” section of USF, about $230 million yearly, to more states. The non-rural fund goes to ILECs (including some non-RBOC ILECs) that serve rural customers. Currently, the lion’s share of the funding goes to Miss., which receives about $120 million, and the rest is split among 7 other states, leaving 42 states ineligible for funding. Smith, Terry and other supporters of the bills have called the funding formula “unfair” and the 10th U.S. Appeals Court, Denver, remanded the funding scheme to the FCC. Both Qwest (which has made the most vigorous push for the bill) and SBC have challenged the FCC’s recently revised scheme, which doesn’t significantly change the distribution pattern. Smith and Terry were optimistic about the chances that the bill could be added to another legislative vehicle and an industry source said the lawmakers have reached out to key members on appropriations and other committees to help move the bill forward. Things have improved for Terry’s bill since Rep. Tauzin (R-La.) vacated his chmn. position. Tauzin, as have some others, said the issue should be dealt with in comprehensive USF reform. “This bill should be adopted today,” Terry said. USF reform, which will be a hot topic in Congress next session, will be a long process, Terry said, but there’s support for this legislation now. But Terry alluded to one “Mississippi representative” who didn’t understand the inequities of the issue. Terry was likely referring to Rep. Pickering (R-Miss.), the vice chmn. of the Commerce Committee. The House bill has 79 co-sponsors, while the Senate version has 31, including the recent addition of Senate Minority Whip Reid (D-Nev.). Neither bill has been marked up or even had a hearing, though the measures have been addressed in other USF-related hearings. Smith said it would have been preferable to have the bill marked up, but said in the Senate, “it doesn’t seem to matter.” He said there were at least 2 appropriations bills that it could be attached to and that the “political season” could produce other bills suitable for attachment.