Martin Urges Technological Neutrality for USF Program
ORLANDO -- Wireless will have a major role in the USF program, FCC Chmn. Martin reassured wireless carriers Tues. Sources said after Martin’s remarks to the CTIA conference here that they're having trouble reconciling Martin’s advocacy of caps on reimbursements to competitive eligible telecom carriers (CETCs) with his insistence Tues. that USF be technologically neutral.
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“We've got to be sure -- for example, in our universal service policies -- that we're not continuing to fund yesterday’s technology, and we've got to make sure we're moving forward,” Martin told CTIA: “We're concerned that people who live in rural, high cost areas continue to get access to this unbelievable communications system that we have, but we've got to do that in a technologically neutral way.”
Historically, USF money has gone mostly to wireline incumbents, Martin said: “We've got to make sure that we're putting in a place a system that allows for us to use the most efficient technology to be reaching those folks. The real benefit of wireless… is it’s a much more efficient means of trying to connect people. Particularly in rural areas it can be much cheaper to be able to connect people on the wireless side.”
At a Feb. 20 Federal State Board on Universal Service hearing, Martin voiced concern about the rise in the number of CETCs getting support, which he linked to the program’s rapid expansion. “Today I'm sad to say, the number of providers has ballooned,” creating pressure on the USF, he said.
A wireless industry source said Martin has called for caps on CETCs, and 90% of CETCs are wireless carriers. “How can a wireless cap be technologically neutral?” the source asked. But a 2nd source said that though Martin has urged curbs on USF spending, he doesn’t believe the chairman wants to cut out wireless carriers.
Martin told reporters after his speech he hopes the FCC will proceed with a USF revamp this year. “We took some important steps last year to try to alleviate some of the concerns,” he said: “But I also think that broader reform is still needed and I still think we need to go forward and move our contribution mechanism over to one based on telephone numbers. It’s a competitively neutral means of collecting Universal Service revenue.” Of the numbers-based approach to reform, which he has long endorsed, Martin said: “There are several proposals in the record. There’s some people that have raised concerns about it. But I think it is still the right thing to end up doing.”
Comr. McDowell told us he’s not sure the Commission can approve an order this year changing the contribution system. “It has been said already that if the joint board comes out with something in the next week or 2, roughly a year beyond that” there could be action, he said: “I don’t know if this year we can have an order that the Commission votes on. Within a year maybe there could be some action.”
“We're still waiting to hear what the joint board recommendation is, and I'm really hoping we can move on that,” Comr. Adelstein said: “There’s widespread recognition that there’s a problem with the lack of stability in the current contribution base… It’s really up to the chairman, but I do think we need to move on solidifying the contribution base.”