WASHINGTON-Federal Communications Commissioner Harold Furchtgott-Roth told Congress the agency’s administration of a discount Internet program for schools and libraries likely is illegal.
“Based on my personal staff’s further analysis … I conclude that the commission’s interpretation of its authority to designate services for support under the program likely runs afoul” of recent rulings by the U.S. Court of Appeals for the District of Columbia Circuit, said Furchtgott-Roth in a recent memorandum to Rep. George Gekas (R-Pa.).
Gekas chairs the House Judiciary subcommittee on commercial and administrative law.
The FCC schools and libraries program, written into the 1996 telecom act, effectively expanded a universal service regime that historically has subsidized basic phone service for rural and low-income Americans.
The wireless industry, for its part, asserts it is not treated fairly under FCC universal service rules. Carriers complain they must pay more than their fair share into the universal service fund and they are limited in their ability to tap into the telecom subsidy.
Western Wireless Corp. has run up against this in trying to get classified as an eligible carrier as it offers wireless universal service in rural areas of the West.
Furchtgott-Roth, a Republican and former staff economist on the House Commerce Committee, openly disagrees with the FCC Office of General Counsel’s legal interpretation of the court’s American Trucking ruling as it applies to the schools and libraries, or E-rate program.
Furchtgott-Roth said the FCC’s interpretation of the 1996 telecom act does not clearly define the kind and scope of Internet-related services that are eligible for support under the schools and libraries program.
Another major implication of the policy, according to Furchtgott-Roth and others, is there is no limit on the amount of taxpayer funding for FCC discounted Internet connections and services.
In May, Gekas’ panel held a hearing on FCC license transfer procedures at which time universal service issues were raised.
The FCC had to revamp the schools and libraries program once before after it was declared illegal in a Government Accounting Office report.
“We’re going to continue looking at this issue,” said Jim Harper, counsel for the House Judiciary subcommittee on commercial and administrative law.
