Orlando, Florida - September 20, 2005 - NECA EXPO 2005 kicked off with “Point/Counterpoint,” an industry debate featuring panelists from all sectors of the telecom industry including wireline, wireless, and VoIP. Although each panelist had a different point of view about the future of the industry, all indicated their hope that this period of regulatory uncertainty would soon end and that stability and predictability would return to the system. The debate, moderated by telecom consultant and former FCC Commissioner Andrew Barrett, took place on the first day of EXPO 2005, NECA’s annual training and industry issues conference.

The debate panel featured telecom attorney John Nakahata, David Cole from CenturyTel, Brook Schultz of Vonage, rural telecom consultant Glenn Brown, Paul Garnett from CTIA representing the wireless industry and  Frank Gallagher, a telecom analyst from Legg Mason.

Speaking from the investor perspective Gallagher called for the FCC and Congress to make changes to the laws or the regulations as quickly and as simply as possible. Gallagher made the point that unless his clients know what the future regulatory regime will be and what changes Congress may make in the Telecom Act, they will be hesitant to invest in the industry. Gallagher also stressed to the largely rural telecom audience that whatever changes were made needed to be simple and predictable.

Rural consultant Brown echoed the call for regulatory stability. He indicated that as changes are contemplated, regulators and lawmakers need to adhere to three basic principles; all network users must pay; USF support must be based on embedded costs; and there must be a regulatory environment that promotes investment in the rural telecom infrastructure.

Brown argued for a rationalization of support for competitive carriers. According to Brown, it doesn’t make sense for competitive carriers to receive USF support based upon the costs of the incumbents when the competitive carriers are not making the infrastructure investments that the incumbents are making.

CTIA’s Garnett explained that the number of wireless lines now surpasses the number of landlines and their contributions into the USF are increasing. Therefore, he argued for the wireless industry to have a say in how the distribution side of the USF occurs in the future.

In other remarks during the debate,  Schulz described Vonage as an applications service   provider rather than a telecommunications service provider; Nakahata urged the industry and regulators to keep an eye on the megatrends while revamping the regulatory system such as moving from the command and control of a traditional circuit switched network to wireless and IP; and Cole urged that during the ongoing debate the industry and regulators recognize all of the good things accomplished by the current Universal Service Fund in providing communications services to millions of customers that would likely have never been served without it.

In addition to the industry issues debate NECA EXPO also features three days of training sessions for NECA members on important issues affecting the rural telephone industry such as intercarrier compensation, universal service, VoIP, current regulatory developments and changing technology.

NECA EXPO 2006 will take place September 18-21 at the Mandalay Bay Resort and Casino in Las Vegas.