State PUC members from 13 states urged Congress to reform a ‘brok...
State PUC members from 13 states urged Congress to reform a “broken” universal service support system this year through targeted changes in the high-cost support program for non-rural carriers. The joint letter signed by 27 state commissioners from Ariz.,…
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Colo., Ida., Ind., Kan., Mich., Minn., Mo., Neb., N.D., Okla., S.D. and Wash. was sent to Senate Commerce Committee Chmn. McCain (R-Ariz.) and to incoming House Commerce Committee Chmn. Barton (R-Tex.). The letter said comprehensive universal service reform may take years to accomplish, but “in the interests of ensuring fair treatment for millions of rural Americans, the high-cost, non-rural program can and should be fixed this year.” The letter said 70% of rural Americans are customers of large non-rural carriers such as the Bell companies. The letter said all the benefits from the non-rural high-cost support program were spent in just 8 states -- Ala., Ky., Me., Miss., Mont., Vt., W. Va., Wyo. -- with customers in the other 42 states paying $200 million in universal service assessments but receiving zero benefit in return. For 2004, the letter said 2 more states (Neb. and S.D.) will receive support payments while the other 40 states are shut out of the program entirely: “Congress did not intend these huge disparities. Something is very wrong.” The state commissioners said they supported passage of legislation such as S-1380 and H-1582 that would “ensure a fairer, more targeted distribution of the non-rural fund.”