WASHINGTON-Senate Commerce Committee Chairman John McCain (R-Ariz.) has accused Federal Communications Commission Chairman Reed Hundt of going forward with a plan to link schools and libraries to the Internet without having a funding mechanism in place.
“We understand that you intend to implement one part of Section 254, dealing with subsidized services to schools and libraries, prior to implementing the rest of that section,” wrote McCain in a Jan. 27 letter to Hundt.
Referring to section 254 of the universal service provision of the 1996 telecom act he said, “There is not disagreement over the merit of goals set forth in Section 254.” But, he added, “In our view, sound implementation of Section 254 requires that the commission resolve all the interrelated issues involved in universal service carefully and contemporaneously.”
Clinton, in his inaugural address and at his news briefing last week, spoke of his desire to put schools and libraries on the Information Superhighway. Vice President Gore, the president’s top high-tech adviser, has been pushing the proposal in recent years.
The wireless industry, for its part, is concerned with the direction the universal service debate is taking. A big fear is that the government will require wireless carriers to pay into the universal fund-in fact, help subsidize Internet access to schools, libraries and hospitals-without much chance of tapping into the fund as a would-be service provider to those entities and to low-income citizens as well as those in rural and high-cost areas.
The extent to which wireless carriers are eligible for funds depends on how policymakers define the scope of universal service. A definition that includes a full menu of voice, data and video services would by necessity require a sophisticated broadband network of the type that would disqualify wireless providers.
A more narrow definition, on the other hand, would put wireless carriers on somewhat equal footing with wireline, cable and fiber network operators.
For now, the wireless industry is scrapping just to get its voice heard in the development of policy.
“Without significant wireless participation in the governance process we are concerned that the wireless industry’s interests would be seriously compromised,” said Jay Kitchen, president of the Personal Communications Industry Association.
“Billions of dollars are at stake and wireless interests should be given every opportunity to participate in the process.”
The federal-state joint board, a key player in universal service implementation, recommended that the National Exchange Carrier Association be named interim administrator for the schools, libraries and rural health care providers that are beneficiaries of discounted-perhaps free-Internet access.
If it becomes the official administrator, according to PCIA, NECA is expected to create a wholly owned subsidiary-a universal service administration company, or USAC-to oversee the program. That entity, in turn, would govern under the auspices of a board comprised of industry representatives recommended by the Federal Communications Commission.
“We are pleased that NECA recognizes the need to adjust the representative balance of USAC,” Kitchen said.
The National Telecommunications and Information Administration, a unit of the Commerce Department that advises the White House on telecom policy and manages federal government spectrum, is a strong advocate of making universal service true to its name.
“We are committed to achieving a fully connected nation where every American household has affordable access to vital telephone services as well as the ability to access information networks that can greatly enhance their lives,” said Larry Irving, NTIA head, when weighing in on the issue last June.
