WASHINGTON-CTIA-The Wireless Association Wednesday warned that universal service contributions could increase by 40 percent if the Federal Communications Commission accepts the projections of the Universal Service Administrative Co.
USAC is a quasi-governmental organization created by the FCC to administer universal-service subsidies. USAC told the FCC Tuesday that it projects it will need $29.191 million for the first quarter of 2005. Due to a recent decision by the FCC that requires USAC to make sure it has cash on hand before obligating funds, CTIA is worried that significant increases will be required.
“This increase is primarily due to the application of arcane U.S. government accounting rules, the Anti-Deficiency Act and the Miscellaneous Receipts Act to the universal-service fund,” said CTIA in a statement.
CTIA is also concerned because it said the wireless industry finances 27 percent of the fund, while it withdraws only 3 percent.
“Further increasing the burden on wireless consumers makes no sense. Given what they get back, they’re already paying significantly more than their fair share of universal-service costs,” said CTIA President Steve Largent.
The FCC’s Wireline Competition Bureau said it will be at least a month before the FCC rules on the first-quarter 2005 contribution amount because it still has to get the final numbers from USAC and then determine the appropriate increase.
“Forty percent sounds huge but what it means on the actual bill is roughly 92 cents,” said Mark Wigfield, spokesman for the Wireline Competition Bureau, noting the average contribution is currently $2.30.
