The California Public Utilities Commission said its top legislati...
The California Public Utilities Commission said its top legislative priorities in 2008 would be reforming the state Lifeline subsidy program and rural telecom infrastructure grants program, and ensuring adequate financial controls on a new broadband universal service program. The…
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PUC said that as retail telephone rate regulation continues to fade and as competition grows more intense, getting enough funds for Lifeline will become difficult if contributions and subsidies remain linked to carriers’ rates. The PUC said it wants to state Lifeline subsidies changed to a flat monthly credit instead of a percentage discount. This would allow accurate estimates of the annual Lifeline costs on which to base contributions, and would help make the state Lifeline program technologically neutral, it said. The PUC said it wants changes to the rural infrastructure grant program, including removal of a $2.5 million cap on per-project funding and an extension of the grant program through the end of 2012. The PUC said eliminating the cap would allow funding of worthy projects now disqualified because they are too big. The PUC also wants legislation putting “appropriate” financial controls on the new state Advanced Services Fund, a universal broadband service program that’s starting this year. The fund would support private broadband construction efforts in underserved areas.