YOU ARE AT:Archived ArticlesUSTA says states should decide who gets ETC funds

USTA says states should decide who gets ETC funds

WASHINGTON-Wireless telecommunications is an alternative to wireline telephone service but the wireline trade association believes states-which generally do not regulate wireless service-should still decide whether wireless carriers are eligible to receive universal-service subsidies.

“We are not opposed to wireless carriers getting universal service. What we are opposed to is the [Federal Communications Commission] having a separate set of criteria for when a wireless carrier qualifies as an eligible telecommunications carrier when that obligation is given to the state to determine on a local basis. We don’t oppose wireless providers getting universal service, what we support is the state making the judgement of what the terms and conditions are for wireless. … When you look at universal service in context of rural you have got to make some judgement based on local decisions, which the states are in the best position to do, to determine what is fair when you allocate those scarce universal-service resources,” said Lawrence E. Sarjeant, vice president for regulatory affairs and general counsel for the United States Telecom Association.

USTA has not studied how many telephone customers have cut the cord on their wireline service, said Gary Lytle, USTA interim president and chief executive officer. But Lytle said USTA’s members add 10 wireless customers for every wireline customer. He also called his daughter, a student at Boston College, “exhibit A,” because her only phone is a wireless phone.

Lytle and Sarjeant’s comments came at a USTA press briefing held last week.

Sarjeant said it was inaccurate to say that incumbent local exchange carriers are against wireless carriers being granted ETC status, but that the same rules should apply to all carriers. “All we are looking for is parity,” he said.

Wireless carriers have often faced an uphill battle to obtain ETC status. A case in point is Nebraska.

Nebraska granted Western Wireless Corp. ETC status on Nov. 21. On April 12, a group of rural telephone companies in Nebraska filed a motion for emergency relief with the Nebraska Court of Appeals and then told the FCC that Western Wireless’ ETC status was void and invalid. Western was required to refute this in a letter sent late last month to the FCC.

“Although the independents have made such arguments to the Nebraska Court of Appeals, the arguments have not been addressed by the court and the court has not issued any orders in the case. In the meantime, the order of the Nebraska [Public Service Commission] designating Western Wireless as an ETC remains a valid order, contrary to the arguments of the independents in their correspondence,” said James H. Blundell, Western’s director of external affairs.

ABOUT AUTHOR