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The FCC must overhaul Universal Service Fund distribution, not co...

The FCC must overhaul Universal Service Fund distribution, not contribution, to respond effectively to this quarter’s record-high contribution factor, said the National Association of State Utility Consumer Advocates. In a letter Wednesday to commissioners, the association asked the commission…

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to reject an “emergency” petition by AT&T calling for basing contributions on a carrier’s phone-number count (CD July 29 p8), in place of interstate revenue. The carrier blamed shrinking revenue from access lines for the factor’s rise. But NASUCA said carriers’ interstate revenue has been stable the past seven years. “The adjusted revenues have fluctuated around a mean of $16.08 billion, with the maximum being $0.8 billion above the mean and the minimum being the current $1.32 billion below the mean,” it said. “This is hardly the ‘death spiral’ that AT&T and others have continually predicted.”