|  The
Universal Service Fund (USF) is designed in part to assure that all Americans
have access to basic telephone service, including Americans that live in remote
rural regions of the country. Funding from the USF to assure that all rural Americans
continue to have access to affordable telephone service is supposed to be available
regardless of the type of telephone company that serves a specific rural community.
Funding for the USF is included as part of the long distance charges that every
American pays. However, currently most rural areas in the United States receive
little or no USF support if they happen to be served by one of the so-called "non-rural"
carriers that serve both urban and rural areas. Under the FCC's current regulations
"non rural" telephone carriers that serve rural areas in only three states (MS,
AL, WV) receive 83% of the annual $233 million in "non rural" carrier funding
that is available. Five states (ME, VT, KY, WY, MT) receive 17% of the "non rural"
carrier funding. 42 states including all but two states (WY, MT) west of the Mississippi
receive no "non rural" carrier funding under the USF. Two more states are expected
to receive "non rural" carrier funds this year: Nebraska, $8 million, and South
Dakota, $2 million. But 40 states are still shut out of the nearly 1/4 billion
dollar "non rural" carrier program entirely, while states that were already receiving
benefits under the "non rural" carrier program see their funding increased further.
The
National Grange supports USF reform to create a truly national universal service
fund to ensure that telephone service in rural communities remain affordable throughout
the entire country. Legislation that would fix the USF for all rural Americans,
is now before Congress: S. 1380 and H.R. 1582 (the House and Senate versions of
the Rural Universal Service Equity Act of 2003). Full
text of the Rural Universal Service Equity Act of 2003 - House version (H.R. 1582)
Full
text of the Rural Universal Service Equity Act of 2003 - Senate version (S. 1380)
| The
bill would require the FCC to: |
| - Calculate
support by determining which telephone company wire centers have the highest average
costs to provide service. The current FCC model compares statewide average costs
to the national average cost. The statewide approach disadvantages rural consumers
if a low-cost-of-service city exists anywhere in their state.
-
Provide funding only to wire centers with average costs that exceed the national
average. This ensures that funds go to only to the most rural areas.
-
Equitably distribute the funds throughout the United States.
| | - Not
increase the size of the universal service fund. This means that the Universal
Service surcharge on local telephone bills will not increase due to the legislation.
- Ensure a minimum
level of support for states that currently receive funding under the FCC's existing
formula.
- Not
affect the high-cost fund that provides USF support to small, independent, and
rural telephone companies.
-
Distribute funds fairly among the truly rural parts of the country, not just to
a chosen few.
-
Under existing law, funds distributed to rural America under this legislation
must be used to support universal service. This includes investments in the telephone
network.
|
The
National Grange is a member organization of CLEAR (Coalition for Equitable and
Affordable Rural Service) and KEEP USF FAIR COALITION to extend our efforts for
fair USF. The CLEAR effort received a big boost last week from 27 state telecom
commissioners who wrote a letter to Sen. John McCain and Rep. Joe Barton, urging
them to schedule action on the Smith-Terry legislation this year. Several of the
signers are national leaders on telecom policy. The 13 states represented were
Arizona, Colorado, Idaho, Indiana, Kansas, Michigan, Minnesota, Missouri, Nebraska,
North Dakota, Oklahoma, South Dakota and Washington State. Click
here to read the Public Utilities Commissions Letter to Sen. McCain and Rep. Barton.
The CLEAR provides a website where you can send an instant message to your Representative
to urge them to fix the USF for the benefit of all rural Americans. PLEASE
SEND A PROTEST MESSAGE TO YOUR REPRESENTATIVES IN CONGRESS
WITH JUST A FEW
CLICKS OF THE MOUSE! CLICK
HERE .
| | What
is the Universal Service Fund? |
The
Universal Service Fund is a federal program designed to provide Americans living
in rural areas with affordable, high-quality telecommunications services. Because
the cost of providing phone services to rural Americans is much higher than the
cost of providing the same services to residents of high-density urban areas,
the Universal Service Fund was established to ensure equitable rates throughout
the country. The Universal Service Fund is generated through contributions from
local, long distance, wireless, paging and pay phone companies. Most of these
companies recover these costs through a line-item charge on their customers' bills.
The money generated for the Universal Service Fund is used to finance several
different programs, including reduced rates for telephone service for low-income
households, Telemedicine programs for rural health care providers, affordable
phone and Internet access for schools and libraries, and support to phone companies
in high cost areas of the country to ensure that they are able to charge rates
equitable with low cost areas. If
you have any questions or comments please contact Legislative Research Analyst
Chil-Sook Hwang by fax: 202-347-1091
or by phone: 1-888-4GRANGE, ext 109. Thank
you for your grassroots participation in the National Grange Legislative program.
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Hill. |
