WASHINGTON-The Senate Appropriations Committee on Wednesday told the Federal Communications Commission it could not use any of its money to impose a primary-line restriction on universal-service subsidies.
“None of the funds appropriated by this act may be used by the FCC to modify, amend or change its rules or regulations for universal-service support payments to implement the Feb. 27, 2004, recommendations of the Federal-State Joint Board on Universal Service regarding single connection or primary-line restrictions on universal-service support payments,” reads the amendment that passed unanimously.
The Senate is expected to consider the bill containing the FCC appropriations next week, but it still unclear whether Congress will complete its budget work before it leaves town for the election. If it does not, Congress will return for a “lame duck” session.
Under the primary-line restriction, one carrier could receive support for only one household instead of the current system where carriers receive support based on how many lines are served. This system has allowed wireless carriers to receive support for serving rural customers even if the customer has not cut the cord.
The Telecommunications Act of 1996 allowed universal-service support to become portable so the carrier that served the customer received the support for serving that customer.
In an effort to protect the growth of the universal-service fund, the Federal-State Joint Board on Universal Service in February recommended that support be limited to one primary line. The FCC has one year to act on the recommendation.
The National Telecommunications Cooperative Association said it was ecstatic. “We commend Sens. Conrad Burns (R-Mont.), chairman of the Senate communications subcommittee, and Byron Dorgan (D-N.D.) for leading the charge to squash this potentially harmful restriction on rural consumers’ telecommunications choices. We strongly believe that forcing a consumer to choose one line at an affordable and comparable rate is not the appropriate means to controlling the growth of the universal-service fund,” said Michael Brunner, NTCA chief executive officer.
Rural local exchange carriers have been fighting against wireless carriers for universal-service support as both the amount of subsidies and number of carriers receiving support have increased. While rural LECs and wireless carriers disagree on most universal-service policy, they agree that the primary-line restriction is a bad idea.
The primary-line restriction is not a new idea. As the FCC developed the universal-service rules in the wake of the passage of the telecom act, there was a great debate about whether support should be given for second lines. It was finally decided that support should be granted for additional lines in an effort to spur the take rate on broadband services. The theory was if rural customers had access to dial-up service then they would eventually want broadband.
