CTIA–The Wireless Association® Criticizes Anti-Consumer Universal Service Cap Proposal
May 1, 2007
WASHINGTON, DC – CTIA–The Wireless Association® President & CEO Steve Largent today sharply criticized a proposal by the Federal-State Joint Board on Universal Service (Joint Board) that discriminates against wireless consumers living in rural areas by recommending a cap on support available to competitive eligible telecommunications carriers (CETCs).
“Almost three years after being assigned the task of developing recommendations to reform the high-cost universal service system, the Joint Board has missed the mark,” said Largent. “The Joint Board’s bias toward legacy wireline networks will undoubtedly disadvantage rural consumers, the majority of which now view wireless as their primary mode of telecommunication. In neglecting to propose a comprehensive set of technology-neutral, market-oriented reforms to the high-cost Universal Service system, the Joint Board has effectively told rural consumers that they don’t deserve high-quality wireless services,” continued Largent.
Over the past month, a bi-partisan group of United States Senators had written to the Joint Board and strongly urged them to pursue meaningful, wholesale reforms instead of piecemeal recommendations that discriminate against certain technology consumers. Those Senators include; Senator Jim DeMint (R-SC), Senator Byron Dorgan, (D-ND), Senator John Ensign (R-NV), Senator Amy Klobuchar (D-MN), Senator Trent Lott (R-MS), Senator John McCain (R-AZ), Senator Mark Pryor (D-AR), Senator John Rockefeller (D-WV), Senator Gordon Smith (R-OR) and Senator John Sununu (R-NH).
The Senators mentioned above have expressed support for even-handed interim and long-term reform measures. Last year, the Senate Commerce Committee approved legislation that would have required universal service support mechanisms and rules be competitively neutral and not favor one provider or one technology over another. This legislation would have codified numerous Federal Communications Commission (FCC) and court decisions which have concluded that universal service competitive-neutrality is required by the Communications Act. Senator Ted Stevens (R-AK) has reintroduced legislation that would require universal service competitive-neutrality.
CTIA–The Wireless Association® intends to educate FCC Commissioners, Members of Congress and rural consumers about the discriminatory nature of the Joint Board’s recommendations and the potential for it to negatively impact broadband deployment. In February, a report issued by the FCC showed that nearly 60% of all new high-speed lines in America were wireless. This statistic clearly illustrates that wireless broadband is growing faster than cable and DSL combined.
Largent also pointed to the recently published global broadband rankings from the Information Technology and Innovation Foundation (ITIF) which placed the United States 15th among the 30 OECD nations. “It’s hard to believe this kind of proposal will be considered as our nation is working to close the digital divide and bring high-speed broadband services to all Americans. No policy of the United States government should, in effect, dictate to consumers their so-called ‘communication choice,’ particularly when it comes to accessing high-speed broadband services,” continued Largent.
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CTIA is the international association for the wireless telecommunications industry,
representing carriers, manufacturers and wireless Internet providers.
www.ctia.org