USF Reform in Congress Not Likely Until 2007, Members Say
No significant universal service fund reform in Congress is likely to be enacted until at least 2007, two members of Congress told a Center for the New West forum Fri. Sen. Craig (R-Ida.) and Rep. Cannon (R-Utah) said other legislative priorities, coupled with the issue’s complexity, make 2007 a likelier timeline for enactment. These members’ evaluation is noteworthy, since neither sits on his chamber’s Commerce Committee. They said their judgments are based on members’ knowledge and attitudes, not on the expert Committees.
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The 2006 election also will figure, since members dislike disrupting the status quo just before constituents vote, said Craig, chmn. of the Senate Veterans Affairs Committee and a member of the Appropriations and Energy & Natural Resources committees. “We're a couple of years away,” he said. “There needs to be a knowledge build up.” Cannon concurred.
Earlier, House Commerce Committee Chmn. Barton (R- Tex.) said an “academic argument” could be made for eliminating USF, but said that’s politically unrealistic. Barton said he will work to broaden the base of contribution to USF. Barton also said he wants distributions to be more cost-effective, and would look to more cost-effective solutions, like wireless. Barton said Congress will have to address questions about what defines a telecom service in relation to USF, especially as wireless and Internet-based services expand. Also, as more people migrate to Internet phone services, issues of Internet taxation may need to be revisited, he said. “If two-thirds of the people are getting service through the Internet, that’s a horse of a different color,” Barton said of the Internet tax moratorium.