Martin Has Majority Support for CETC Cap
LAS VEGAS -- FCC Commissioner Robert McDowell sent FCC Chairman Kevin Martin a list of edits on an order that would cap Universal Service Fund payments to competitive eligible telecom carriers (CETCs) at end-of-year-2007 levels, agency sources said. McDowell backs a carve-out for tribal lands in all 50 states, including Alaska, but without language specific to Alaska carrier GCI. McDowell proposed language saying that the FCC would make an earnest effort to undertake comprehensive USF reform.
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Martin has had no comment, but McDowell’s support would give him a third vote for a cap, along with Commissioner Deborah Tate’s. The cap would apply mainly to wireless carriers who get USF funding to compete in rural areas. A year ago, Martin told the CTIA convention that wireless carriers will figure prominently in the universal service fund’s future, cap or no cap. Martin speaks Tuesday to the CTIA, and USF reform is a likely topic. Industry sources note that on May 1, 2007, the Joint Board Federal-State Joint Board on Universal Service recommended that the commission immediately impose an interim, emergency cap on how much high-cost support CETCs may receive for each state. The FCC has not acted on that recommendation.
“There hasn’t been a whole lot going on in USF, and you do have the one year anniversary of the joint board’s recommendation coming up,” an industry source said. “It’s anybody’s guess as to what’s going to happen between now and May.”
A cap on CETCs would make incumbent wireline carriers less likely to try to negotiate broader USF reform, said an industry attorney. “This chairman’s time is running,” the source said. “If a cap were implemented, at least consistent with the joint board’s recommendations, it would expire in November of this year.”
Addressing CTIA in 2007, Martin emphasized the major role he sees wireless playing in the USF. Sources then said a CETC cap would hit wireless carriers hard. “The real benefit of wireless… is it’s a much more efficient means of trying to connect people,” Martin said. “Particularly in rural areas it can be much cheaper to be able to connect people on the wireless side.”