WASHINGTON-Sprint PCS was granted eligible telecommunications carrier status for parts of Alabama, Florida, Georgia, New York, North Carolina, Tennessee and Virginia, making it able to collect universal-service subsidies for customers in some of the rural areas of those states.
The FCC’s Wireless Telecommunications Bureau limited the subsidies to areas served by regional Bell operating companies or “non-rural” companies. It rejected several arguments typically made against wireless carriers wishing to receive universal-service subsidies.
“We’re pleased that the FCC has granted Sprint’s ETC requests, and we believe that wireless has an important place in the delivery of universal service. In the larger picture, it’s been our longstanding position that the universal-service fund needs to be fundamentally reformed to ensure its continued viability, and we believe that wireless services represent an important part of the universal-service system,” said Sprint spokesman James Fisher.
The FCC recently began narrowing the criteria for ETC status but said Sprint had agreed to all of the conditions.
Wireless carriers, which just recently started receiving money from the universal-service fund to wirelessly connect rural America, believe in using USF to stimulate competition. Wireline carriers have complained that mobility lessens the value of the universal-service fund because customers can connect in areas that are less expensive to serve. Wireline carriers have also said the service quality of some wireless calls makes it less desirable than wireline.
