WASHINGTON-Wireless carriers that receive universal service support should submit to auditing to ensure that the subsidies they receive are being used to upgrade and improve networks in rural America, FCC Commissioner Jonathan Adelstein told reporters following his speech Thursday at the 21st Annual Telecommunications Policy and Regulation Institute sponsored by the Practicing Law Institute.
The wireline industry and some state regulators have called for more direct auditing for the wireless industry, and Adelstein said he has been told by some wireless carriers, which he did not name, that they would be willing to submit greater data to the Federal Communications Commission to ensure that the subsidies are being used for rural America.
“To the extent that the FCC scrutinizes universal service subsidies for other types of carriers, CTIA has no objection to the wireless industry being held to the same FCC audits-keeping in mind that we’re not subject to the same rate of return regulation as the LECs,” said Travis Larson, Cellular Telecommunications & Internet Association spokesman.
During his speech, Adelstein, who also serves on the Federal-State Joint Board on Universal Service, said he will not support proposals to limit universal service subsidies to primary lines. “Some are suggesting that a way to control costs is to fund only primary lines. I believe that this would deny consumers the full support Congress intended. Universal service is not about one connection per household; it encompasses that concept, but is not limited by it. The low-income fund ensures at least one connection per household, but the high-cost fund embraces the concept of network development and support so that all Americans have access to comparable service at comparable rates,” said Adelstein. “So I will not support restricting funding to primary lines only. There are other better options for addressing the growth of the fund.”
Much of the support that wireless carriers receive comes from former second lines as consumers cut the cord on these lines.
