FCC Chmn. Martin and others are using a ‘phony crisis’ to justify...

a flat collection method based on telephone numbers, said the current revenue-based method isn’t broken. Coalition Exec. Dir. Maureen Thompson released a report she said “debunks the hoax” that USF collection reform is needed. The report shows the long distance revenue base for USF contributions isn’t dwindling, as opponents argue, Thompson said. According to the report, long distance revenue base, $76.6 billion in 2003, is projected to be $78.9 billion in 2006. Projected revenues drop slightly in 2007 to $76.8 billion -- still slightly over the 2003 level, Thompson said in an audio news conference. If needed, the current revenue base easily could be expanded by making it more “technology neutral,” meaning revenue could be added from VoIP and other advanced technologies not directly contributing to the fund now. If that were done, the expanded revenue base for USF would be $104.5 billion in 2006 and $105.9 billion in 2007, Thompson said, calling that a more “common-sense” approach to enlarging the fund. The coalition opposes a numbers-based system because it might lead to higher fees for low-volume users of long distance service. Although contributions to the fund come from companies that offer long distance service through a percentage of revenue, the firms pass the fees onto users. The coalition’s announcement came on the eve of a Senate Commerce Committee hearing on USF contributions today (Tues.). The Pacific Research Institute (PRI) took advantage of today’s scheduled hearing to issue a call for more sweeping USF change. The think tank said the USF has “spiraled out of control,” giving “wasteful subsidies [to] entrenched local carriers.” Rather than expand USF to include contributions from high-tech services such as VoIP, Congress should target needy consumers with vouchers and add rules that “ensure public accountability and safeguard cutting-edge innovations,” PRI said.