FCC Chmn. Martin has some questions to answer on the Universal Se...

all Americans and plans to study proposals aimed at that goal, he told Martin in the letter. “I am eager to get your thoughts,” Markey said, voicing concern at the fund’s “explosive growth” to $7.2 billion so far this year, largely due to the uncapped high- cost fund. Martin said at the FCC oversight hearing (CD March 15 p1) that he favored capping the fund. Markey’s letter seeks specifics: “Will you ask the Joint Board to place a ‘cap’ or ‘freeze’ on the high cost program in its entirety, or on some portion of the program, such as the funding provided to a certain class of telecommunications carriers?” Markey asked Martin to quantify the effect of the FCC decision to treat DSL as an information service. Contributions for the service ended Q3 2006. “Does the Commission plan to take any action to broaden the contribution base to reduce the contribution factor and the corresponding burden placed on consumers?” Markey asked. The FCC policy shift on USF “portability” funding had a profound effect on the fund, causing incumbents to retain support for lines they lose to a competitor while the competitor also receives support, resulting in double payments, Markey said, noting that a Joint Board member testified to the committee that the rule change has added $1 billion to the fund since 2003. “Do you agree? Please explain your answer,” Markey said, asking Martin if the Commission is reviewing “whether it would be meritorious” to revive the portability rule. Markey also asked Martin if he would support enforcing the primary line restriction if Congress lifted a ban on the policy. Markey told Martin he has no position on reverse auctions, but is “intrigued” and wants to understand Martin’s criticism of a reverse auction that distributes support to more than one winner for a particular high cost area. “Does your reverse auction proposal encompass ‘bids’ that offer a more robust package of services, including affordable broadband access to the Internet” along with bids for subsidy for voice services? Markey asked Martin. He asked if Martin favors adopting such “attributes” in a reverse auction plan, and whether he favors lifting the E-rate program cap, now $2.25 billion. Finally, he asked Martin to clarify the rules for E-rate funding and to outline recommendations he would make to improve the appeals process. Markey asked Martin to answer by May 4.