House members representing rural districts need to be ready to fi...

a forum Wed. that reviewed rural telecom issues and included large and small carriers’ representatives. “It is clear that rural concerns, especially reforms related to the USF, must be addressed when we rewrite the telecom bill,” Gutknecht said. “It is my hope that we can create a House ‘farm team’ that will advocate these concerns as we update this policy.” USTA Chmn. Gene South told lawmakers that landline service providers are hampered by “extensive day- to-day government micromanagement of our business.” He said cable and wireless providers don’t face the same kind of regulations, and some services, including cable and satellite services, aren’t paying into the universal service fund (USF). South said regulations are keeping smaller wireline companies from offering video service to compete with cable. CTIA Pres. Steve Largent said wireless services, and the broadband services they can now provide, could help bridge the digital divide. But Largent also said myriad state regulations threatened the industry. He also said IRS rules on equipment depreciation were increasing the cost of deployment in rural areas. On USF, Largent said wireless carriers should be allowed to compete for funds. He said wireless service is more expensive to provide to rural areas, but “the wireless industry nonetheless believes that wireless carriers can be a cost effective solution for consumers in these areas.” Lawrence Sarjeant, Qwest vp-federal legislative & regulatory affairs, said USF needed a fairer distribution system. Sarjeant said the Bell serves vast rural areas but receives little help from USF fund because it’s defined as a “non-rural” company. Qwest has supported legislation introduced last session by Rep. Terry (R-Neb.) and Sen. Smith (R-Ore.) to rectify the situation by changing the funding formats. Smith was expected to reintroduce the legislation Thurs. (see separate item, this issue).