FCC ought to impose freeze on universal service outlays and reeva...
FCC ought to impose freeze on universal service outlays and reevaluate programs funded by universal service money, VoiceStream said in reply comments filed Mon. in Commission’s proposed rulemaking on how universal service contributions were collected (CD April 24 p6).…
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“Federal taxes and regulatory fees already exceed 10%” of consumer’s bill and “continued, unexamined fee growth could push these federal regulatory assessments toward 15%,” VoiceStream said: “There is a crisis looming over the [universal service] program, but the crisis is not caused by the contributions methodology in place today. The crisis is rather due to the fact that the size of universal service subsidy outlays has been allowed to grow -- with additional growth in disbursements already planned -- without a thorough examination of the sufficiency of the program.” Changing methodology, main topic of FCC call for comments, won’t help if program keeps growing in size, VoiceStream said. It said it was “firmly committed to universal service” and to providing its “fair share… even though it does not receive any subsidy dollars in the provision of its mobile services.” However, company said, it’s “unreasonable” to keep raising contributions from wireless customers. Current 15% safe harbor for wireless contributions is “equitable,” despite criticism by coalition of wireline companies and customers that wants to raise it, VoiceStream said. “There is no evidence to suggest that on average, wireless customers have higher interstate usage levels compared to customers of fixed landline service,” company said. Critics have said wireless safe harbor understates amount of interstate revenue earned by wireless providers. Universal service contributions are based on interstate revenue. “The only evidence that the Coalition presents in support of their allegation is that the growth in CMRS interstate revenues [reflected in contributions] has not matched the decrease in IXC interstate revenues,” VoiceStream said. That argument “is simply not credible” and “ignores technological bypasses of the networks and the economic downturn,” company said. “Wireless migration is, of course, a partial reason that IXCs are losing revenues but it is certainly not the sole cause.”