Terry-Boucher USF Bill: More Payers, Broadband Support
More industries would contribute to the Universal Service Fund (USF), with distributions more tightly controlled, under a bill introduced Thurs. by Reps. Terry (R- Neb.) and Boucher (D-Va.). The bill would allow USF funds to go to pay for broadband services. “Reforming USF is a significant step in closing the gap between rural Americans and urban Americans, allowing for all of America to compete in the global marketplace with both products and ideas,” Terry said in a statement.
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It took nearly a year of consultations with industry and other interests to devise the bill, Boucher said. It reflects “broad areas of consensus,” updating an earlier draft so it reflects wider input. The measure would let the FCC decide whether to adopt a revenue or numbers-based approach, or a combination, in calculating USF contributions.
The bill probably won’t be moving soon, since House Commerce Committee Chmn. Barton (R-Tex.) has no plans to include a USF portion in the telecom bill headed for markup in the Telecom Subcommittee next week. But if the House passes the telecom bill, and action moves to the Senate, the Terry-Boucher measure could become important. The Senate bill is certain to include a USF piece, and when the bills go to conference, the House would need to be ready with a plan.
Barton is inclined to dismantle the system, while Senate Commerce Committee Chmn. Stevens (R-Alaska) has said he won’t pass a telecom bill that doesn’t include - and perhaps even expand -- USF. “Stevens and others are strong supporters of expanding it,” House Telecom Subcommittee Chmn. Upton said in an interview for C-SPAN’s The Communicators series, to air on the weekend. “From Barton’s perspective, that’s a nonstarter,” he said. It’s likeliest to be worked out in conference, Upton said.
Any provider of a service that uses telephone numbers, IP addresses or offers network connections to the public for a fee would have to contribute to the fund under the Terry- Boucher bill. Broadband would be declared a universal service, making explicit support for buildout of broadband lines. Within 5 years, recipients of funds would have to be offering high speed broadband service with a download receiving rate of a least one Mbps.
The fund essentially would be capped at today’s level other than support for schools and libraries. The bill would limit the number of eligible telecommunications carriers (ETCs) qualifying for USF support. It would mandate a permanent exemption for the fund from the Anti-Deficiency Act, obviating the annual renewal dance.