USF Cap Proposal Irks Rural Groups

USF CAP PROPOSAL IRKS RURAL GROUPS
[SOURCE: Technology Daily, AUTHOR: David Hatch]
Senate Commerce Chairman Ted Stevens (R-Alaska), a longtime champion of rural telephone interests, faces potentially fierce opposition from rural phone carriers to his sweeping telecommunications legislation. Organizations representing rural providers were incensed by comments that Sen Stevens made Thursday during the first round of consideration of his bill. He shocked many in the packed room when he expressed support for a cap on the universal service fund that subsidizes telecom service for rural and low-income citizens. Adding insult to injury, sources said, is language inserted by Chairman Stevens and Commerce ranking member Daniel Inouye (D-Hawaii) that could result in additional universal service funding for the lawmakers' states. A source said the amendment would require the FCC to examine whether noncontiguous states and "insular" regions should receive more money to aid carriers. On Friday, four rural phone associations -- ITTA, NTCA, OPASTCO and WTA -- met with Sen Stevens' staff to express concern about a possible cap and other items. Sen Stevens made his comments in response to an amendment offered by Sen. John McCain (R-AZ) that would establish a $6.5 billion limit on the fund, now set at $7.3 billion. Stevens convinced Sen McCain and others to withdraw the measure and work with him to craft a threshold.
http://www.njtelecomupdate.com/lenya/telco/live/tb-LYWX1151334850145.htm...