WASHINGTON D.C.-The Progress & Freedom Foundation released a book-length report examining the Universal Service Fund titled, “The Myths and Realities of Universal Service: Revisiting the Justification for the Current Subsidy Structure,” authored by Senior Fellow Randolph May with two adjunct fellows, Joseph Kraemer and Richard Levine.
” ‘Myths and Realities’ provides the most up-to-date data on the increasingly diverse communications marketplace, including cable telephony, wireless services, electronic messaging and Voice over Internet protocol services. Among other conclusions, the data suggests that programs that target low-income households more effectively address universal service goals, including the retention of minorities, than do the existing overly broad non-targeted subsidies,” said Progress & Freedom Foundation President Ray Gifford.
“This critical report comes as both Congress and the Federal Communications Commission perform a close examination of the universal service fund and its related programs.”
Among other results, the study found that nearly half (45.2 percent) of rural homes have both landline and cellular service, while an additional 5.3 percent use only wireless service compared with the national average of 51.7 percent with both and 6 percent wireless only. In addition, universal service households at an annual income level of $25,000 have a 94-percent wireline use rate, but more than 40 percent of those homes also have wireless service and 57 percent have cable. The rural aspect of universal service is increasing at an accelerating rate, from about $2.6 billion in 2001, it could reach $3.6 billion in 2004 and surpass $3.9 billion this year.
