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Universal Service Fund High Cost Reform 2007. Billy Jack Gregg Director, West Virginia Consumer Advocate NARUC New York City July 16, 2007. High Cost Reform. Back to Basics What Does the Statute Say ?. High Cost Reform. Guiding Principles, Sec. 254(b):

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universal service fund high cost reform 2007
Universal Service FundHigh Cost Reform2007

Billy Jack Gregg

Director, West Virginia Consumer Advocate

NARUC

New York City

July 16, 2007

high cost reform

High Cost Reform

Back to Basics

What Does the Statute Say?

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High Cost Reform

Guiding Principles, Sec. 254(b):

●Quality services at just, reasonable and affordable rates

●Reasonably comparable services for rural customers at reasonably comparable rates

●Access to advanced services in all regions of the Nation

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High Cost Reform

Supported Services, Sec. 254(c):

●An evolving level of telecommunications services

●Take into account advances in telecommunications and information technologies and services

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High Cost Reform

What services?

Currently, only POTS service is supported

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High Cost Reform

What do customers really want?

  • Reliable voice service in their homes and businesses
  • Data service in their homes and businesses
  • Mobility
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High Cost Reform

Do current High Cost Support Mechanisms address these needs?

NO!

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High Cost Reform

Many rural areas lack access to:

  • Mobility
  • Broadband
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High Cost Reform

Current High Cost Support Mechanisms

For Rural Carriers

  • High Cost Loop Support
  • Local Switching Support
  • Interstate Common Line Support

For Non-Rural Carriers

  • Interstate Access Support
  • High Cost Model Support
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High Cost Reform

Are any of the current High Cost Support Mechanisms mandated in the statute?

NO!

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High Cost Reform

Should rethink approach to High Cost Support

●Need fund that addresses build out of broadband infrastructure in unserved areas

●Need fund that addresses build out of mobility infrastructure in unserved areas

●Need fund that addresses affordability and comparability of rates in high cost areas

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High Cost Reform
  • Do all supported services have to be supported in the same way?
  • Is “competitive neutrality” an impediment to reform?