USF Reform gets another shot

Representatives Lee Terry (R-Neb.) and Rick Boucher (D-Va.) have once again introduced legislation that would reform the Universal Service Fund and assist in future broadband rollouts.

The Universal Service Reform Act of 2006 achieves one widely hoped-for goal of broadening the fund's base by requiring service providers that offer services that substitute for traditional service and providers of connections to the broadband network to contribute to the USF. Additionally, the act would limit distributions based on "actual costs reasonably incurred."

The bill also would put stricter limits on the amount of distributions given to Competitive Eligible Telecommunications Carriers (C-ETCs), which have been one of the main factors in growth of USF.

The Coalition to Keep America Connected, a group made up of four associations representing rural carriers, said it was pleased to see the bill expand the contribution base in a technology-neutral fashion.

"The Congressmen have once again demonstrated their commitment to maintaining the integrity of the Universal Service Fund, ensuring consumers everywhere can benefit from the latest communications services," Coalition representative and Executive Vice President of the Western Telecommunications Alliance Kelly Worthington said in a prepared statement. "We applaud their leadership and their continued efforts to elevate universal service issues to the forefront of the telecom reform debate."