U.S. Cellular representatives met with FCC officials to discuss difficulties in...
U.S. Cellular representatives met with FCC officials to discuss difficulties in distributing universal service support by auction, “in particular the problem of establishing competitively neutral service area boundaries for bidding,” as the commission develops a mobility fund, said an ex…
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parte filing. “We also discussed the FCC’s longstanding aversion to regulatory actions that skew the marketplace, and in this case the likely re-monopolization of rural areas that now have some competition, but poor service quality,” the company said. “By limiting an amount of support to an area, the Commission could ensure competitive neutrality, allow newcomers to enter the market if they are willing to commit risk capital, while controlling the fund size. Moreover, the Commission would not be in the business of monitoring carrier costs or individual expenditures, since a model would establish the maximum that the government would provide in support to each area.” U.S. Cellular stressed the fund’s importance to building out service in new … areas and to filling in dead zones in coverage areas. “These kinds of high-cost areas will not be built and maintained without an ongoing program that supports construction, operating expenses, and upgrades,” the carrier said.