RURAL TELCO GROUPS CAMPAIGN TO RETAIN USF IN ACT'S REWRITE

Seeking to separate itself from the usual cacophony of political debates, a group of four associations representing rural telcos last week choose to use a series of illustrative examples in kicking off a drive to keep Universal Service in the discussion during any pending rewrite of the Telecom Act of 1996.

Mixing some of the patriotic messages that all four groups have leaned on in the past, the Independent Telephone & Telecommunications Alliance, the National Telecommunications Cooperative Association, the Organization for the Promotion and Advancement of Small Telecommunications Companies and the Western Telecommunications Alliance also released the results of a survey they say shows the public supports their position.

During a press conference announcing the Keep America Connected campaign, leaders of several rural telcos, along with the head of the American Telemedicine Association, talked about the impact of universal service funding on their various communities.

Thelma Armstrong, president of the ATA, noted that she lives in a town that sits 120 miles from Billings, Mont., which also happens to be the same distance as the nearest pediatrician. Using a local telemedicine facility, which is connected to Billings hospitals with high-speed access funded by the USF, children are able to see a doctor without the long drive.

“All of these services are provided throughout rural America because of universal service,” she said. “The health-care community in rural America considers this a lifeline.”

Bob Williams, president of Oregon Farmers Mutual Telephone in Oregon, Mo., added that the USF is a key component in the quality of life for his small town, which has only one health clinic connected to a hospital via T-1, which is partially funded by USF.

“Without universal service, we probably wouldn't have health care at all in Oregon, Mo,” he said.

Sticking with a strategy to personalize the issue, the group also released results of a study showing how much the average consumer's bill would rise without USF (see figure). Fred Johnson, general manager at Farmers Tel in Rainsville, Ala., said the difference of $20 to $30 per month would be significant in his territory where there are a lot of households with income of less than $15,000 annually. He also took issue with some recent suggestions that USF was a government subsidy.

“We're not taking money from the government,” he said. “This is a self-funded mechanism because everybody that's connected to the network contributes, and I think it's a pretty fair way of doing it.”

As part of the campaign, the groups also commissioned a survey to poll users on their feeling about universal service. The results showed that voters by a three-to-one margin said Congress should keep USF in place.

While basically agreeing on the idea that USF should remain in place, the U.S. Telecom Association is taking a more direct approach instead of tugging on heart strings. In a filing with the FCC late last month, the association said it disagrees with all four current proposals for revamping the fund and believes the only element that needs fixing is how many companies are contributing to USF.

Rural association members have been even blunter, demanding that voice-over-IP (VoIP) providers be required to collect universal service funds from consumers.

“VoIP as a technology is a tool. It's not magic,” said Randy Houdek, general manager at Venture Communications Cooperative in Highmore, S.D. “It should have the same obligations and rights of any other telecommunications services,” Houdek said. “VoIP does not work without the network.”

Consumer cost without USF

Top five states that would be impacted most

	Average cost increase to consumers	Total USF funds received in 2004
Hawaii	$13,968.07	$16,934,000
Wyoming	$518.51	$57,595,000
Kansas	$504.76	$143,322,000
Louisiana	$400.91	$148,069,000
Alaska	$380.43	$114,365,000
Source: Coalition to Keep America Connected