Clyburn Asks States for USF reform Help

Speaking at the Mid-America Regulatory Conference in Kansas City (MO), Federal Communications Commission member Mignon Clyburn focused on the National Broadband Plan goal that every American should have affordable access to robust broadband service at home. She spoke about transforming the Universal Service Fund -- which has helped the US connect 95.6% of households with telephone service -- into a broadband fund.

In order to free up current universal service money to fund a new Connect America Fund and additional Mobility Fund, the broadband plan proposes that the FCC phase out support for multiple voice providers over five years and that the Commission implement the voluntary commitments of certain wireless carriers that already have agreed to reduce their legacy support. It also proposes that current support be frozen; that the FCC consider moving rate-of-return companies to incentive regulation; and that the FCC adopt a framework for long-term intercarrier compensation reform that would create a glide path to eliminate per-minute charges over time. Intercarrier compensation revenues already are declining on their own, through market forces, and they will continue to decline as more consumers rely on IP networks. In April, the FCC began the first phase of the transition and started the process of reforming the Universal Service Fund, to connect all Americans to broadband, no matter whether they live. The FCC released a Notice of Inquiry and Notice of Proposed Rulemaking, focusing on three major topics. The FCC and Commissioner Clyburn hope to receive input from State regulators on USF transition proposals.