WASHINGTON-Universal service is a hot topic in Washington this week with two House panels hearing testimony, a think-tank seminar and an ad campaign launched Tuesday by TracFone Wireless.
“The Federal Communications Commission’s proposed change would impact every landline and cell phone, charging the user $1 or more per month-regardless of how much or how little they use their phone,” said FJ Pollak, chief executive officer and president of TracFone Wireless based in Miami. “Under the connection or number-based proposals, the long-distance companies would greatly reduce if not eliminate their current universal-service fund collection and remittance responsibilities.”
The FCC is examining this issue because there is a concern that the USF could go bankrupt as long-distance revenues plummet. The universal-service fund is financed by interstate and international telecom revenues.
One reason long-distance revenues are shrinking is that buckets of minutes, where consumers pay one price for local and long distance, offered almost exclusively by wireless carriers have become increasingly popular. Many consumers who have signed up for bucket plans from their mobile-phone carriers, now use wireless for their long-distance calling rather than a long-distance provider.
TracFone’s ads appeared in the Washington Post and the Washington Post Express and urge consumers to visit its Web site www.tracfone.com/usf to contact the FCC.
While TracFone is addressing its attention to the FCC, Congress is also involved in the universal-service issue.
The House telecommunications subcommittee is scheduled Wednesday to hold a hearing where John Stanton, chairman, director and chief executive officer of Western Wireless Corp., is slated to testify.
“The competitive universal-service system is working: Rural consumers are gaining access to services previously reserved to their urban counterparts. Rural consumers today have begun to realize the vision of the Telecommunications Act of 1996’s pro-competitive mandates, including those that apply to the universal-service market,” reads Stanton’s prepared testimony. “Wireless service provides the only real option for rural consumers to bridge the ‘geographic divide’ and fully participate in our global economy. A competitive universal-service market is a success because of the progressive thinking of Congress and pro-competitive policies of the FCC and state commissions. Congress should continue to oversee the development of universal service in the United States and take action, as necessary, to further develop the emerging competitive universal-service market.”
Also scheduled at the hearing is Bob Row, chairman of the Montana Public Service Commission and a member of the Federal-State Joint Board on Universal Service.
“The recent but dramatic growth in certification of ‘competitive eligible telecommunications providers’ especially wireless CETCs is a relatively new but potentially very significant driver,” reads Row’s prepared testimony.
RCR Wireless News obtained some of the testimony submitted to the House telecommunications subcommittee in advance of a hearing scheduled for 1 p.m. Wednesday.
On Thursday, the House Small Business Committee is also expected to examine the issue, and on Friday the Progress and Freedom Foundation has scheduled a seminar. Stanton is slated to appear at the PFF event.
