WASHINGTON-The Federal Communications Commission, in separate rulings, last week said Western Wireless Corp. and Verizon Wireless can receive universal-service funds to help them provide wireless telco service in Wyoming and Delaware.
The decisions represent major victories for the wireless industry in terms of regulatory precedent and the symbolism they carry.
The mobile-phone industry, particularly Western Wireless, has fought tirelessly in recent years to earn “eligible telecommunications carrier” status necessary to tap into the multibillion-dollar universal-service fund.
State regulators generally have refused to grant ETC status to wireless companies, but that is changing. Minnesota and Texas have designated wireless carriers as ETCs.
The fund, underwritten by local telephone companies, mobile- phone carriers and others, subsidizes service for low-income and rural consumers and residents in high-cost service areas. Wireless firms have complained about having to pay into the fund while being denied the ability to provide universal service.
“Western Wireless was extremely pleased with the ETC decision of the FCC, particularly the fact the ruling came within the promised time frame,” said Michelle Farquhar, a communications attorney who represents Western Wireless. “This decision establishes a possible framework for enabling competitive carriers to serve rural telephone company areas as ETCs.”
Western Wireless, the Bellevue, Wash.-based cellular sister company of VoiceStream Wireless, is now free to offer wireless universal service in Wyoming.
The issue landed at the FCC in 1999 after the Wyoming Public Service Commission rejected Western Wireless’ application for ETC status. Wyoming regulators argued they are prohibited by state law from doing so because Western Wireless deploys cellular technology.
Under a 1993 law, states are banned from regulating rates and market entry of wireless carriers but can oversee service quality and other aspects of commercial mobile radio service.
“We conclude that Western Wireless has demonstrated it will offer and advertise the services supported by the federal universal service support mechanism through the designated service areas upon the designation as an ETC. In addition, we find the designation of Western Wireless as an ETC in those areas served by rural telephone companies serves the public interest by promoting competition and the provision of new technologies to consumers in high-cost and rural areas of Wyoming,” the commission stated.
The FCC did not buy arguments of the Wyoming Telecommunications Association that rural areas are not capable of sustaining universal-service competition and that granting Western Wireless and others eligible telecommunication carrier status will chill investment in rural telecom infrastructure.
Likewise, the FCC said Verizon Wireless can receive support to provide universal service in Delaware. Delaware regulators said they too lacked authority to grant ETC status to Bell Atlantic Mobile, which has become Verizon Wireless.
U S West, now Qwest, challenged the request by Verizon Wireless at the FCC for the eligible telecommunications carrier classification. The FCC said Verizon Wireless would be limited to serving only low-income residents who qualify for the Lifeline or Link-Up support systems.
“We’re pleased the commission reached this result and granted our request,” said Andrea Linskey, a Verizon Wireless spokeswoman. “We are particularly gratified that the commission rejected U S West arguments that discriminate against wireless carriers to qualify for the universal service fund.”
