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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

Universal Service

Funds

Roy Lathrop

NCTA

NARUC Telecom Committee

54th MARC Convention 2008

Grand Traverse Resort, Michigan

universal service funds
Universal ServiceFunds

Good news:

NOT an intercarrier comp panel

current intercarrier compensation rates the system is broken

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

universal service fund
Universal ServiceFund
  • Contribution
  • Distribution
  • Broadband?
universal service1
Universal Service

Contribution

12.9%

universal service distribution
Universal ServiceDistribution
  • FCC Rural Health Care Pilot $ 417m

62%

slide7

High-Cost Fund

$2.6b in ‘01 $4.3b in ‘07

universal service2
Universal Service

Distribution

  • Mechanisms not kept pace with technology & competition
  • More providers + services = more USF !
  • When competition justifies deregulation, it justifies reduced support
state universal service funds
State Universal Service Funds
  • Assessments vary by program
  • Periodic adjustments
  • Programs & rules can change
  • California:
  • 6 programs (Adv. Svcs. 12/07)
broadband part of usf
Broadband:Part of USF?
  • Lifeline/Linkup Pilot Program
  • NTIA / RUS rules for ARRA
  • Rural Broadband Report (Copps)
  • National Broadband Plan (FCC)
broadband part of usf1
Broadband:Part of USF?
  • Control voice USF first
  • Any USF support: unservedareas, underserved populations
  • Pole rates, assessment
slide12

Available,

Relevance

Not interested

Hotspots, corporate and government users

slide13

Broadband:

What About

Climate Change?

Energy Issues?

Health Care?

broadband initiatives ongoing challenges
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