Lawmakers Moving To Overhaul USF

[SOURCE: Technology Daily, AUTHOR: David Hatch]
Sens. Conrad Burns (R-MT) and John (Jay) Rockefeller (D-WV) are in the late stages of drafting legislation overhauling the $7.1 billion universal service fund. Sen Burns wants to introduce the measure by the end of January but may hold off until February -- when the Senate Commerce Committee has two hearings scheduled on the issue. The bill seeks to strengthen the federal program -- which is designed to lower the cost of phone service in rural and low-income areas -- by expanding the program's funding base and permitting the FCC to subsidize broadband. Sources cautioned that the latest Burns-Rockefeller draft is still being negotiated and could change before introduction. The measure is expected to play a role in helping Senate Commerce Chairman Ted Stevens (R-Alaska) shape related universal service legislation that he has promised to offer. However, a spokesman said only that Sen Stevens would review this and other pending bills. Apparently the bill will: broaden the base of contributors to universal service, tasks the FCC with determining a new methodology for gauging carrier payments to the universal service fund, addresses the problem of so-called "phantom traffic" -- which often plagues small, rural telecom carriers -- and maintains the E-rate.
http://www.njtelecomupdate.com/lenya/telco/live/tb-FBCH1138137505290.html