NTCA’s Foundation for Rural Service (FRS) on Mon. unveiled an ‘ed...

bolstered the program’s scope and size. The paper, “One Nation Indivisible: The Case for Universal Service and Rural Connection in the Broadband Age,” explained USF to the audience of mostly young Hill staffers. The paper, and speakers, asked if the USF fund and the Telecom Act’s goals for competition were compatible. “Is true compatibility possible between universal service and competition in the rural areas served by community based telecom providers?” the paper asked. “Industry experience since the passage of the 1996 Telecommunications Act suggests that success in achieving these divergent policy objectives is illusory, at best. It remains essential that consideration be given to the economics of rural markets, where it is ‘costly’ for one network to serve but ‘doubly costly’ for two.” Speakers said changes in access charge regulations have caused a rise in the USF. The Interstate Common Line Support (ICLS) mechanism, which lets long-distance providers use USF to cover interstate common carrier line access charges, now accounts for nearly 40% of USF funding. Douglas Meredith, dir.- economics & policy for John Staurulakis, Inc., said the policy change has helped fuel USF growth, leading some on Capitol Hill to suggest slashing the program. House Commerce Committee Chmn. Barton (R-Tex.) recently questioned USF’s relevance in light of high telephone connection rates in the U.S.