The FCC Wireline Bureau issued the first double-digit contributio...

is passed on to customers as a line item on phone bills. It reflects USF costs but not costs caused by the FCC’s decision to apply the Anti- Deficiency Act to the USF. Congress recently passed legislation exempting the USF from the Act’s requirements until the end of 2005. SBC Senior Vp James Smith said the double-digit USF figure “clearly highlights the need for comprehensive reform of how the program is funded” through measures such as the changes proposed by the Intercarrier Compensation Forum. The USF increase also could have been lessened if the FCC required AT&T “to pay its lawful share into the fund,” Smith said. AT&T hasn’t been making USF contributions on revenue from its enhanced prepaid card services. SBC contended the amount AT&T is withholding represents about 1/2 the contribution factor increase. An AT&T spokeswoman said SBC’s comments were “self-serving rhetoric.” She said it would be “misguided policy” to impose USF obligations on enhanced prepaid cards because it would “shift more of the costs of the fund to those least able to afford it.” AT&T is the largest contributor to the USF. The FCC is expected to act on the AT&T card issue early next month.