It’s not the most exciting telecom policy topic in DC, but universal service funding (USF) is a perennial problem. The FCC is responsible for assessing contributions by various telecom-related providers in order to subsidize the availability of phone service in high-cost, low-density areas.
But, as the telecom business splinters into a mosaic of unforeseen technologies, and on the heels of certain deregulatory moves by the FCC, the USF is quickly running out of funds. In recognition of this, the Commission today voted to levy USF fees on IP-based voice providers while boosting the level of contributions made by mobile communications carriers.
As expected, the Commission upped the proportion of wireless revenues (used to gauge how much revenue is interstate or international revenue) against which USF fees are assessed - the ratio is now 37.1% of end-user revenues, compared to 28.5%. For VoIP providers, the FCC has determined that 64.9% of revenues are interstate and therefore subject to USF contributions, which are assessed at a rate of 10.9% of interstate and international revenue.
Meanwhile, as the FCC was holding its monthly meeting, the House Committee on Energy and Commerce was holding a hearing on the exact same subject as Congress grapples to fix the creaky, complex universal service funding system. Among the questions bandied about on USF is whether the fund should extend to subsidizing not only voice service in low-income, low-density markets, but also high-speed Internet access.
If that were the case, broadband providers would have to start contributing to the funds based on their high-speed service revenues. Not so fast, NCTA VP of State Regulatory Affairs Rick Cimerman said in his testimony before the Committee. “The imposition of new fees on broadband service at the same time policymakers seek to encourage more widespread deployment and service penetration would be counter-productive and would raise the price of high-speed Internet services for current and potential broadband customers,” Cimerman said in written testimony.
Cynthia Brumfield at 3:42 PM|Comments(0)
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