WASHINGTON-The Federal Communications Commission is currently deciding whether to require wireless carriers to offer equal access to long-distance services in order to be eligible to receive universal-service subsidies.
The FCC recently received comments on the issue and the comments appear to break down the familiar lines of wireless versus rural-telephone companies.
Landline carriers were required beginning in the 1980s to allow customers to choose a long-distance carrier. This “equal access” is not required of wireless carriers.
The Federal-State Joint Board on Universal Service deadlocked when it examined the issue so now it is up to the FCC to decide whether equal access should be one of the requirements to receive universal-service subsidies.
“The historical record clearly indicates that provision of wireless services has occurred in rural areas without the need for universal-service funds. Therefore, the assertion that a requirement to receive universal-service funds, such as the provision of equal access, would reduce competition in rural, high-cost areas is without merit,” said the Nebraska Rural Independent Companies.
“The real debate here is about whether universal-service support can co-exist with intermodal competition,” said Western Wireless Corp. Requiring wireless carriers to offer equal access “would deprive the commercial mobile radio service provider of the ability to negotiate an advantageous long-distance arrangement that enables it to offer economical bundled local and long-distance calling plans.”
The National Association of State Utility Consumer Advocates believes equal-access should be required and that wireless carriers are making a business decision in not offering it.
“The federal universal-service support mechanism is intended to support the services found by the [FCC] to qualify [under the Communications Act]. If a carrier chooses not to offer one or more of the those services, that is the carrier’s business decision,” said NASUCA. “Equal access should not be rejected merely because it would make a class of carriers ineligible for universal-service support because of the carriers’ marketing or other business decisions.”
The rural carriers also want to be included in whatever summit Sen. Conrad Burns (R-Mont.), chairman of the Senate communications subcommittee, convenes on universal service.
“We believe it would be important to have industry representation at such a summit, which would speed the effort of identifying the best possible solution for ensuring the future of the program. The convening of a such a meeting with the full participation of industry would enhance the subcommittee’s active oversight of the FCC’s decision-making process,” said the Independent Telephone & Telecommunications Alliance, the National Rural Telecom Association, the National Telecommunications Cooperative Association, the Organization for the Promotion and Advancement of Small Telecommunications Companies and the Western Alliance.
Burns said earlier this month that he wanted to convene a summit to ensure that the universal-service fund doesn’t go broke.
