Joint Statement of Commissioners Mignon Clyburn and Michael O'Rielly on the Wireline Competition Bureau's Implementation of 100% Overlap Rule

Today, we support the Bureau’s Public Notice to implement the phase out of universal service support for rate-of-return carriers in service areas fully served by a competitor that does not receive such subsidies. Providing support to a carrier that is in essence using it to compete against an unsubsidized provider is not the best use of our scarce federal universal service dollars, as it distorts the market, fuels inefficiency, creates an un-level playing field and is not the intent of universal service. While today’s action is a significant first step, we have more to do to address wasteful or excessive spending that is an undue burden on all consumers that contribute to the program. Further reforms are necessary to ensure we target finite universal service funds to areas that will not have broadband without such support.