WASHINGTON-Since the digital TV transition issue put universal-service reform on the back burner, lawmakers recently agreed to extend for another year efforts by the Federal Communications Commission to limit telephone subsidies to a person’s primary line.
This means wireless carriers, which often stand as a customers second telephone line, can continue to receive federal subsidies.
The ban was passed as Congress met to work out differences in the FCC’s spending bill. In addition, lawmakers said that the universal-service fund could not be subject to the Anti-Deficiency Act, which many feared would put support in jeopardy.
Lawmakers passed similar provisions last year on a one-year basis, with many members hoping to fix the universal-service program this year. However, the DTV debate sidetracked the issue.
If the FCC were to implement a primary-line restriction, only one carrier could receive support for one household. Under the current system, carriers receive support based on how many lines they serve. This system has allowed wireless carriers to receive support for serving rural customers even if those customers continue to use landline service in combination with wireless service.
The Telecom Act of 1996 allowed universal-service support to become portable so carriers receive the support for the customers they serve.
In an effort to protect the growth of the universal-service fund, the Federal-State Joint Board on Universal Service in 2004 recommended that support be limited to one primary line. The language included in the FCC spending bill prohibits the commission from acting on the recommendation.
Rural local exchange carriers have been fighting against wireless carriers for universal-service support since both the amount of subsidies and the 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.
“We are pleased that the congressional ban on the FCC implementing a primary-line restriction was renewed. A primary-line restriction is not an effective way to control the growth of the high cost fund,” said William Roughton, vice president of legal and regulatory affairs for Centennial Communications Corp.
