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Home arrow Leading The News arrow Universal Service Fund necessary for rural connectivity
Leading The News PDF Print E-mail
Universal Service Fund necessary for rural connectivity
Posted: 10/16/07 04:13 PM [ET]

Next year at this time members will be crisscrossing their districts in an effort to convince their constituents that they should be reelected. Likewise, challengers will be making the case as to why the incumbent should be defeated and that last election’s promises were nothing more than political rhetoric.

The nationwide rollout of broadband is one of those campaign promises that we still have failed to act on. Most disappointing is that this issue, unlike many before the Congress, has bipartisan support and can pass both chambers to be sent to the president’s desk. Unfortunately, Congress still spends its time on issues that only divide and give Americans an even lower opinion of the work that is done in Washington.

Broadband gives Americans the opportunity to receive an education from a college or university hundreds of miles away; a physician practicing medicine in rural America can use a high-speed broadband connection to exchange X-rays with medical experts around the world; and small businesses have an opportunity to participate in the global economy and bring new jobs to parts of our country struggling to stay alive. One example in my state of Nebraska is a small meat processor in the rural town of Diller that started with just four employees, but with the Internet has developed into a thriving boxed-beef business. These are just a few of the many benefits that broadband can bring to all Americans.

Our current policy to ensure that Americans have access to the highest quality telecommunications is broken and in desperate need of repair. As elected officials we have the responsibility to make sure that all of our constituents are given every tool necessary to participate and succeed in the 21st century global economy.

The Universal Service Fund is central to the goal of delivering accessible and affordable telecommunications to rural areas. Specifically, USF is the public policy that will deliver broadband to rural America, if Congress will agree to reform and improve the fund in order to allow telecommunication providers the ability to use money they are currently receiving to deploy broadband networks.

The failure to act on Universal Service Fund reform will result in millions of Americans losing access to telecommunication services including broadband. A recent study by Keybridge Research examined the impact on consumers if there was to be a reduction in USF support. The study found that eliminating the High-Cost Program within the Universal Service Fund would put more than 7.1 million Americans at risk of losing affordable telephone service. What is more alarming about the study is that the entire telecommunications network would be at risk if the Universal Service Fund is not reformed.

The entire telecommunications network, which includes wireless and voice-over-Internet protocol (VOIP), uses the wireline network. The Universal Service Fund is critical to ensuring that the network remains efficient, and the study shows that as consumers discontinue service, rates for customers remaining on the network will increase because there would be a smaller customer base available to cover the network costs. This so-called “death spiral” is an economic result that can be reversed by prompt action on reform of the USF. As our nation competes in a global economy, we should not tie the hands of many of our entrepreneurs and citizens, especially in rural America, who want to “get in the game” on a global scale.

I continue to be optimistic that Congress will work to enact H.R. 2054, The Universal Service Reform Act of 2007. However, I see it as complementary to regulators’ continued efforts to be fiscally responsible through specific policies.

Terry is a member of the House Energy and Commerce Committee.


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Universal Service Fund necessary for rural connectivity

 

 
 
 
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