On Thursday, November 7, the Federal - State Board on Universal Service voted on a set of recommendations to the Federal Communications Commission. These recommendations are the most recent step in the process initiated by the Telecommunications Act of 1996 to codify new, universal telephone service policy in the United States. These recommendations will be made available for public comment and the full Federal Communications Commission (FCC) will vote on the new policies in early May 1997.
The Joint Board made recommendations on the services that should be supported, stressed competitive neutrality, expanded programs for low-income consumers, and outlined historic discounts for public schools and libraries. Full text of the recommendations will be available online from the FCC at http://www.fcc.gov/Bureaus/Common_Carrier/WWW/universal_service/welcome.html
Services
In a 8-0 vote, the Joint Board recommended that support be provided for the following telecommunications services: 1) voice grade access to the public switched network, including, at a minimum, some usage; 2) dual-tone multi-frequency (DTMF) signalling or its equivalent; 3) single-party service; 4) access to emergency services, including access to 911, where available; 5) access to operator services; 6) access to interexchange (long distance) services; and 7) access to directory assistance.
Principles
The 1996 Act outlined six principles for the Joint Board to consider for the preservation and advancement of universal service. They are:
1) Quality and Rates. -- Quality services should be available at just, reasonable, and affordable rates.
2) Access to Advanced Services. -- Access to advanced telecommunications and information services should be provided in all regions of the Nation.
3) Access in Rural and High Cost Areas. -- Consumers in all regions of the Nation, including low-income consumers and those in rural, insular, and high cost areas, should have access to telecommunications and information services, including interexchange services and advanced telecommunications and information services, that are reasonably comparable to those services provided in urban areas and that are available at rates that are reasonably comparable to rates charged for similar services in urban areas.
4) Equitable and Nondiscriminatory Contributions. -- All providers of telecommunications services should make an equitable and nondiscriminatory contribution to the preservation and advancement of universal service.
5) Specific and Predictable Support Mechanisms. -- There should be specific, predictable and sufficient Federal and State mechanisms to preserve and advance universal service.
6) Access to Advanced Telecommunications Services for Schools, Health Care, and Libraries. -- Elementary and secondary schools and classrooms, health care providers, and libraries should have access to advanced telecommunications services
The Joint Board recommended an additional principle:
7) Competitive Neutrality. -- All providers of interstate telecommunications services should make an equitable and nondiscriminatory contribution to the preservation and advancement of universal service. The Joint Board believes that this principle includes technological neutrality, and that it should be applied to every recipient of or contributor to the universal service support mechanisms, regardless of size, status or geographic location.
Affordability
The Joint Board recommended determined that affordability depends on a number of factors beyond local telephone rates. Additional factors cited by the Joint Board include local calling area size, income levels, and cost of living. The Joint Board recommended that state utility commissions make the primary determination about the affordability of rates. These commission should take appropriate action when setting rates to guarantee affordability. The FCC will assess affordability by continuing to monitor subscribership levels.
Programs for Low-Income Consumers
Low-income consumers are targeted in the 1996 Act for universal service support. The Joint Board recommended to extend two existing programs -- Lifeline and Link Up -- to better serve these people. The Lifeline program reduces the monthly phone bills for low-income consumers. Currently, 41 states and the District of Columbia participate in this program; however, the Joint Board recommended that every state and U.S. territory participate. In this program, low-income consumers would receive support for the same telecommunication services mentioned above as well as voluntary toll blocking and toll limitation services at no additional charge. Those customers who choose these limitation services would also see a reduction in service deposits. A carrier would not be able to disconnect a Lifeline customer's local telephone service for an inability to pay for toll charges.
Schools and Libraries
The 1996 Act designates a role for public schools and libraries in providing universal access to telecommunications services. The Snowe - Rockefeller provisions call for discounts for these public institutions. The Joint Board recommended 20% - 90% discounts for these institutions based on need. 70% of public schools would be eligible for discounts of up to 50% on basic telephone services, Internet access, and wiring classrooms to computer networks.
In a press conference after the vote, Senator Rockefeller said these recommendations are an "enormous win for students." The proposed discounts are not as deep as those in the Administration's "E-Rate" proposal presented to the Joint Board last month by Secretary of Education Richard Riley and Assistant Secretary of Commerce Larry Irving of the National Telecommunications and Information Administration. Both congratulated the board on its recommendations, however. Secretary Riley agreed that this is good news for America's schools and libraries and he said that these substantial discounts move the nation down the road towards an Internet connection for every classroom by the year 2000. Larry Irving reminded everyone that the year 2000 is only 160 weeks away. Mr. Irving said he has witnessed a lot of work being done at NetDay activities across the country, but he recognized that there is still much left to be done.
Benton will offer more detailed analysis of the recommendations in the coming days. We invite you to share your comments by joining our e-mail list.
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Last updated: 10 December 1996 jss
