NARUC Notes: Shifting universal service assessments to a number-b...

to move from a revenue base to a number or connection-based contribution system to eliminate arbitrage and stabilize the support base,” said Ore. PUC Comr. Ray Blum, “but must recognize this is a stopgap solution.” Cox regulatory affairs VP Doug Garrett said number-based contributions are “the least imperfect solution where all solutions are imperfect.” On the distribution side, speakers said support should continue to be based on embedded costs, at least for the most rural of small carriers, but support for larger carriers should be based more on their forward-looking costs. Paul Garnett of CTIA said high-cost support is poorly targeted because most rural users are served by non-rural carriers. The universal service fund should encourage efficient investment, he said. Kathleen Grillo, Verizon federal regulatory vp, said, long term, “we need to simplify how and where we target support.” Consultant Glenn Brown of McLean & Brown in Ariz. said the universal service fund’s purpose should be to propel service into unserved areas, using the most cost-effective technology. He said costs vary not by rural or urban but by population density. Speakers also said universal service reform is tied closely to access and intercarrier compensation reform, since reform in those areas could ease pressure on the universal service fund. Some speakers said policymakers should consider how to bring broadband service into the universal service support structure. “We should be supporting universal broadband, but the question is how to transition it into the current system,” said Blum. Cox’s Garrett said any broadband support “should go to truly unserved areas where market forces haven’t found a way.”