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NECA: Joint Board shouldn't recommend "Quick Fixes" to USF
     Whippany, NJ  - December 14, 2004 – In comments filed today as part of the Federal Communications Commission’s Basis of Support proceeding, the National Exchange Carrier Association (NECA) urged the Federal-State Joint Board on Universal Service to resist calls for “quick fixes” to the universal service fund.  NECA urged the Joint Board instead to leave the current system in place, pending implementation of long term universal service solutions.

NECA refuted claims that the high cost fund is spiraling out of control.  Recent data filed by USAC show clearly that cost growth among small rate of return telephone carriers is on a par with inflation.  Most “new” dollars in high cost funding, however, go to competitive carriers, primarily wireless, who are newly certified (or awaiting certification) for funding eligibility.

NECA also urged the Joint Board to reject recommendations to change methods of computing high cost support amounts.  The current system features multiple layers of review of submitted information and provides assurance that errors and inconsistencies in data are resolved. Removing NECA from the process, as suggested by CTIA, would have the effect of reducing the extent to which high cost data is reviewed, and therefore should not be recommended by the Joint Board.