Boucher Vows to Get USF Bill Passed in House
Consensus is building on universal service legislation that would expand the fund to cover broadband, House Communications Subcommittee Chairman Rick Boucher, D-Va., told the National Telecommunications Cooperative Association Tuesday. Boucher asked the group, which held its annual legislative conference this week, to urge members of Congress to support legislation he hopes to introduce “in the near term.” He declined to say when the legislation would be ready.
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“I am very encouraged by conversations” with industry and lawmakers on USF legislation, Boucher told reporters. NTCA was one of the first to support USF legislation Boucher and Rep. Lee Terry, R-Neb., worked on last Congress, Boucher said. That bill will be the foundation of this year’s legislation, he said, expressing confidence that a bill could pass the House this year.
“The fund today is unstable” and must be fixed, Boucher said. Business models that bundle local and long distance make it difficult to separate out interstate and long distance revenue upon which fees are based, he said. Access charges are declining and some suggest they may disappear, which has created hardships for rural carriers that depended on that revenue. It’s one of many reasons comprehensive reform is needed.
Besides expanding coverage to broadband, Boucher said the bill would aim to collect contributions based on intrastate as well as interstate revenue. All voice providers, and those providing voice through Internet connections, also would be required to pay. “It is important there be an assurance that the money is well spent,” Boucher told NTCA members. He proposes a cap on the high-cost fund that would be adjustable if carriers’ actual capital or equipment costs increase. The cap also would accommodate the loss of funds from access charges. All voice and broadband providers would be required to pay, under Boucher’s proposed model.
The bill also would establish new auditing controls to ensure experienced professionals understand the USF program, and that the auditing system is “fair and reliable,” Boucher said. As it stands, auditors often don’t understand the rules. Another change would be to repeal the so-called “parent trap” rule that barred phone company subsidiaries from ever receiving USF support if they're sold and try to operate on their own.
Separately, Boucher said conversations continue on satellite reauthorization legislation, but a bill isn’t ready. He said he’s had meetings with content originators about possible changes in compulsory license rules, and with satellite and broadcasters about how to resolve carriage of local signals in all 210 designated market areas. There’s more urgency with this bill since the “distant signal” rule will expire at the end of the year, which allows satellite to import TV signals from markets. -- Anne Veigle]