III. The Services That Should Be Included In The Basic Package

What the Telecommunications Act says:

The Act defines universal service as "an evolving level of telecommunications services." In establishing the definition of the "basic package" that is to be supported by Federal universal service support mechanisms, the Joint Board and the FCC are to consider the extent to which services:

(A) are essential to education, public health, or public safety;

(B) have, through the operation of market choices by customers, been subscribed to by a substantial majority of residential customers;

(C) are being deployed in public telecommunications networks by telecommunications carriers; and

(D) are consistent with the public interest, convenience, and necessity.

What the Joint Board recommends:

We recommend that the following be designated for universal service support and referred to as "core" services pursuant to section 254(c)(1):

Based on strong support in the record, we also recommend including a local usage component within the definition of voice grade access. The record suggests that local usage is essential to realizing the full benefits of voice grade access. We conclude that the states are best positioned to determine the local usage component that represents affordable service within their jurisdictions. Nonetheless, for purposes of determining the amount of federal universal service support, we recommend that the Commission determine a level of local usage.

What public interest advocates recommend:

Public interest advocates filed comments showing strong consensus of support for the basic package of services to include a single-party, voice grade, touch-tone line, with access to operator services, a listing in and copy of the "white pages," and access to emergency services via 911.

In answer to provision of "white pages;" the Joint Board answers:

"Although the provision of "white page listings" received significant record support, we do not recommend that it be included within the general definition of universal service. We do not consider white page listings to be within the 1996 Act's definition of "telecommunication services." We strongly recommend that the states take the necessary and appropriate steps to ensure the continued availability of this fundamentally important offering."

Some commenters also support repair services as part of the basic package. For some target communities, commenters suggest that 800 numbers, 976 numbers, voice mail and e-mail services should also be part of the universal service package.

Alliance for Public Technology asserts that defining universal service in terms of specific services is unworkable. Instead, Alliance for Public Technology recommends that carriers choose the amount of bandwidth they will offer. Carriers would then earn 100 percent of the maximum support available for maximum bandwidth and lesser percentages for lesser bandwidth offerings.

The Joint Board addresses the functionality issue with the following recommendations:

"We recommend that for purposes of defining universal service, "telecommunications services" should not be limited to tariffed services, but instead also should include functionalities and applications associated with the provision of services. With the exception of single-party service and touch-tone dialing, the core services proposed ... represent functionalities or applications associated with the provision of access to the public network, rather than tariffed services. A functionalities approach to defining universal service

AARP et al, Edgemont Neighborhood Coalition of Dayton, Ohio (Edgemont), LINCT Coalition, People For et al, Ohio Consumers' Council, Citizens Utilities and other commenters argue that usage of, and not merely access to, the local network should be supported. Many noted that a large number of consumers choose flat-service over measured-rate service. AARP also advocates permitting the selection of services by consumers in the marketplace to dictate whether and when the definition of universal service evolves to include additional services. (See Joint Board's usage recommendations above.)

Commenters also supported equal access to a choice of long-distance providers, to which the Joint Board replies:

The Joint Board recommends that access to interexchange service should not be defined, at this time, to include equal access to interexchange carriers. We acknowledge the importance of equal access to interexchange service in a competitive environment, but we conclude that equal access should not be supported because of the potential costs to wireless carriers involved in upgrading facilities and because wireless carriers are not currently required to provide equal access.

Additional Services the Joint Board did not recommend:

Internet Access
 We find that access to the Internet, to the extent that this implies non-toll access, is provided through voice-grade access to the public switched network. The Joint Board rejects the position of some commenters that the actual use of Internet services be supported. We find that the provision of Internet service does not meet the statutory definition of a "telecommunications service." In addition, we decline to support toll access to Internet providers. We predict, however, that increasing demand for Internet service will result in broader accessibility of Internet service providers. This should have the effect of reducing or eliminating the need for customers in rural areas to place toll calls to obtain Internet service.

Relay Services
 Although we recognize the integral role of TRS in the provision of universal telephone service, we agree with the commenters that state that universal service support is not necessary because the service is already supported through a separate fund.

Other Services
 The Joint Board also rejected commenters suggestions of providing universal service funding for the following services and functionalities: access to basic local directory assistance; call tracing; call waiting; interoffice digital facilities; equal access to SS7 functionalities; ISDN services; interconnection among carriers; reasonable toll usage; carrier-provided customer support services; adequate line quality for facsimile and data transmission; end-to-end digital service; telecommunications services for handicapped and disabled students and employees; guaranteed functional performance requirements; guaranteed continued power for telephone service in the event of a power outage; no-cost repair of the network on the provider's side of the network demarcation point; and number portability.

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