Delegates urge change to FCC Universal Service Funding rule

WASHINGTON, D.C.-Delegates from Guam, the Commonwealth of the Northern Mariana Islands, American Samoa, and the U.S. Virgin Islands recently urged the Federal Communication Commission to adopt specific universal service support mechanisms for the insular areas that recognize the unique economic, social, and geographic challenges facing the U.S. territories.

In a letter to FCC chair Julius Genachowski, the delegates emphasize the need for modifications to the newly created Connect America Fund, a component of the FCC’s Universal Service Funding, USF. USF was developed to assist rural and economically disadvantaged areas in the U.S. receive affordable telephone service, and the delegates’ letter was written on behalf of broadband carriers in Guam.

The delegates underscore that the territories do not have commensurate telecommunication or broadband service capabilities like those that are provided to residents in many of the 50 states. They stress the need for FCC support in order for telecommunication companies in the territories to compete and enhance voice and broadband services in these jurisdictions. Specifically, the delegates urge the FCC to adopt the following changes to the newly created CAF:

· An alternative universal service reform approach for the insular areas by exempting insular carriers from any phase-down of, or caps on, current levels of high-cost support.

· Avert implementation of a reverse auction mechanism for broadband funding in the insular areas, or set aside funding specifically for broadband funding in the insular areas.

· Exempt insular areas from its prior decision to cap support for competitive carriers at March 2008 levels.

· Include a policy in their final regulations that would prohibit any carrier who receives FCC funding from charging international rates for calls to the insular areas from the mainland.

“Telecommunication companies in Guam and the insular areas continue to face significant challenges in providing and expanding broadband services in the territories,” said Guam Delegate Madeleine Z. Bordallo.  “As federal regulations governing broadband funding are developed, we urge the FCC to adopt policies that address the unique circumstances facing carriers in the territories. I thank Congressman Eni Faleomavaega, Congresswoman Donna Christensen, and Congressman Kilili Sablan for joining me in this request. I will continue to work with the FCC to ensure that they implement policies beneficial to Guam’s telecommunication industry.” (PR)