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The FCC Tues. launched an inquiry into management and oversight o...

The FCC Tues. launched an inquiry into management and oversight of the universal service fund (USF) and will seek comments on how to improve the program. Among topics under scrutiny: (1) How to simplify and streamline the program’s management.…

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The agency tentatively concluded a multi-year application process for telecom services in the E-rate and rural healthcare programs would simplify matters. The FCC also asked for comment on shortening or consolidating application forms and adopting deadlines to provide certainty to program applicants. (2) The effectiveness of efforts to protect the fund against misuse. The Commission tentatively concluded “more aggressive debarment procedures are necessary” and asked for comments on ways to improve the debarment rules, according to an FCC news release. The FCC also sought comment on establishing independent audits of some USF beneficiaries and contributors, and on rules to ensure those audits are effective and fair. It asked for suggestions on rules for recovering USF money not used in accordance with the rules. (3) The effectiveness of the administrative structure. (4) The need for performance measures to assess the program’s effectiveness. FCC Chmn. Martin said the notice of proposed rulemaking (NPRM) “provides an opportunity fo the Commission to explore the lessons learned through the operations of the High Cost and Low Income programs” and possibly apply them to other USF programs. Martin said the programs use strict formulas to distribute universal service support. “This type of formulaic approach may hold promise for improving the administration of the E-rate and Rural Healthcare programs,” he said.