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Burns, Abernathy talk universal service reform

WASHINGTON-Sen. Conrad Burns (R-Mont.), chairman of the Senate communications subcommittee, called for a universal-service summit to determine whether legislation is necessary to save the universal-service fund from going bankrupt.

Burns chaired an oversight hearing today. Burns told reporters he believes it is important for the subcommittee and the Federal Communications Commission to sit down and see if a consensus on the problem and how to solve it can be found. Burns said he was not sure whether the summit would be open to the public.

After her appearance before the subcommittee, FCC Commissioner Kathleen Abernathy told reporters that such a summit would not be combined with her planned event next month to examine the E-rate program, which funds Internet connections to schools and libraries.

Abernathy believes FCC staff should sit down with the Senate communications subcommittee staff to discuss plans on the table to prop up and stabilize the universal-service fund.

The FCC expects to come up with a new contribution system by the end of the end of the year, said Abernathy.

Most of the plans being considered would tap non-interstate funds, which could run counter to the Communications Act. While FCC lawyers believe they have the authority to implement whatever the commission decides to do, Abernathy admitted said regardless of what the agency decides, it likely would be appealed. The agency would be on stronger footing if Congress amended the Communications Act, she said.

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