The interim cap on the Universal Service Fund has stunted wireles...
The interim cap on the Universal Service Fund has stunted wireless growth in North Carolina, Virginia and other states, said the Rural Cellular Association. In a letter last week to FCC Chairman Julius Genachowksi, RCA criticized a June 19…
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letter by the National Association of State Utility Consumer Advocates that said the cap has caused little harm. “NASUCA is more concerned about how much consumers pay into the fund rather than ensuring that rural consumers receive the benefits that the fund was intended to deliver,” the rural group said. “We think the latter, especially in the current economy, should be of paramount importance to the Commission and that the interim cap is frustrating Congressional objectives set forth in Section 254 of the Act.” In North Carolina, for example, the cap is cutting $23 million in USF subsidies annually, the rural association said. “As a result, wireless carriers serving the state are being forced to cancel or delay plans for new cell site construction.” The association played down the cost to consumers of removing the cap, saying the increase to USF fees on phone bills would be “pennies to low volume users … and negligible to high volume users.” The FCC has no authority to say what contribution factor is too high, it said. “Congress has never stated what level of contribution factor is unacceptable, and it is the province of Congress, not the FCC, to make such a determination.”