First, it is important to recognize that advancing technology is straining conventional regulatory models for both intercarrier compensation and universal service.
For example, in the context of Universal Service, the increasing use of bundles of minutes has put additional pressure on the pool of interstate revenue that we draw from for Universal Service funds. So the Commission is looking at various ways to change how we collect Universal Service funds. We’re considering proposals that involve connections, telephone numbers, and hybrids that include both.
I’ve been a proponent of numbers-based assessments. I continue to think that proposal has merit. As a Commission, we’re debating these points. The point is, I think the Commission needs to make some sort of change in the way it collects Universal Service funds.
Wireless Wave: What about intercarrier compensation?
Chairman Martin: Again, changes in technology are putting pressure on our models, in this case the intercarrier compensation system. I think it is important for the Commission to consider moving to some kind of unitary rate, to lessen the opportunity for regulatory arbitrage. Doing this in a way that protects the continued provision of service in rural areas will be a challenge, but, still, the
ultimate goal is reform.
Wireless Wave: A lot of these regulatory schemes have been in place for a long time. How do you turn a steamship around?
Chairman Martin: It is true that a lot of these regulations have been around for a long while, but the Commission has to make some changes. These changes might come in the way we collect and distribute Universal Service. In the intercarrier compensation area, changes may take into account the new ways that carriers are connected to consumers and how they exchange information. Again, we have to make some changes to respond to changes in technology.
Wireless Wave: How do you define the FCC’s spectrum management challenges? Specifically, what do you think about the licensed and unlicensed spectrum debate and auction proceedings?
Chairman Martin: In the debate about licensed and unlicensed spectrum, both models present great opportunities and are providing increasing services to consumers. While licensed spectrum provides many services today, unlicensed spectrum has provided a wealth of innovations, especially recently. From the Commission’s standpoint, both are valuable.
