The Iowa Utilities Board called for comments by Oct. 13 on whethe...
The Iowa Utilities Board called for comments by Oct. 13 on whether it should implement a state universal service fund. The IUB addressed the issue in 2003 but chose not to move ahead. Now, the board said it’s time…
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to take another look at the question and see if changed industry conditions now call for a state USF. The IUB said some local exchange providers have advocated a new look at the issue of state universal service subsidies because they believe recent and anticipated access charge reductions may impair their ability to provide local service at reasonable rates. The IUB said it appears access charges have been providing implicit subsidies for local rates, and that moving to explicit subsidies might offer economic and policy advantages. The IUB (Case NOI-08-2) asked commenting parties whether a state USF is needed, what services, providers or technologies should be subsidized, and what the goals of a state USF should be. The IUB also asked for comment on how contributions and subsidy levels should be set, whether there should be a limit on the number of subsidized carriers in a market, and whether a third party should be retained to administer the fund. Further procedural steps will be set after the comments are reviewed.