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Universal Service

Universal Service. Funds. Roy Lathrop NCTA. NARUC Telecom Committee 54 th MARC Convention 2008 Grand Traverse Resort, Michigan. Universal Service Funds. Good news : NOT an intercarrier comp panel. Small ILEC Intrastate ( 5.1). CLEC Interstate (0.6). CLEC Intrastate (3.0). Large ILEC

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Universal Service

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  1. Universal Service Funds Roy Lathrop NCTA NARUC Telecom Committee 54th MARC Convention 2008 Grand Traverse Resort, Michigan

  2. Universal ServiceFunds Good news: NOT an intercarrier comp panel

  3. Small ILEC Intrastate ( 5.1) CLEC Interstate (0.6) CLEC Intrastate (3.0) Large ILEC Intrastate (2.5) Average Rates in Cents per Minute Small ILEC Interstate (1.8) CMRS – ILEC InterMTA ( 0.6) Recip Comp Voice (0.2) Large ILEC Interstate (0.6) Recip Comp ISP ( 0.1) CMRS – ILEC IntraMTA (0.2) LONG DISTANCE CALLS LOCAL CALLS WIRELESS CALLS High (¢/min): 1.5 8.9 9.9 34.9 6.8 35.9 0.3 0.1 8.9 0.3 Low (¢/min): 0.5 0.3 0.4 0.7 0.2 0.4 0.0 0.0 0.2 0.0 Current Intercarrier Compensation Rates The System is Broken 23

  4. Universal ServiceFund • Contribution • Distribution • Broadband?

  5. Universal Service Contribution 12.9%

  6. Universal ServiceDistribution • FCC Rural Health Care Pilot $ 417m 62%

  7. High-Cost Fund $2.6b in ‘01 $4.3b in ‘07

  8. Universal Service Distribution • Mechanisms not kept pace with technology & competition • More providers + services = more USF ! • When competition justifies deregulation, it justifies reduced support

  9. State Universal Service Funds • Assessments vary by program • Periodic adjustments • Programs & rules can change • California: • 6 programs (Adv. Svcs. 12/07)

  10. Broadband:Part of USF? • Lifeline/Linkup Pilot Program • NTIA / RUS rules for ARRA • Rural Broadband Report (Copps) • National Broadband Plan (FCC)

  11. Broadband:Part of USF? • Control voice USF first • Any USF support: unservedareas, underserved populations • Pole rates, assessment

  12. Available, Relevance Not interested Hotspots, corporate and government users

  13. Broadband: What About Climate Change? Energy Issues? Health Care?

  14. Broadband Initiatives:Ongoing Challenges Eyesores or salvation? ATT withdrew app for 850 boxes in SF Envtl review 8/10/08 free vs. $10–20 / mo

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