FCC Calls for Comments on the Proposed USF CapAs the FCC called for comments regarding the Federal Joint Board’s recommendations for capping the Universal Services Fund (USF), wireless carriers and rural telecom advocacy groups fired their objections at the regulatory body.
The Rural Cellular Association (RCA) opposes the cap saying that it would discriminate against competitors to rural landline phone companies. In a statement directed at the FCC, the RCA said, “Economic development and prosperity in rural areas is tied directly to the availability of modern infrastructure in those areas. In recent years, many RCA members have made service commitments to rural areas and have qualified to receive USF support. But there is much more wireless network construction needed in rural areas.”
The Federal Joint Board recommended an emergency cap on the amount any eligible carrier could receive from the fund. The Board recommended that the cap be in place for one year while the FCC works to overhaul the entire USF system.
Critics of the proposed cap claim that it will hurt wireless carriers in rural areas far more than wireline companies. CTIA claims that the wireline carriers have benefited far more from the USF, receiving roughly $24 billion, while wireless carriers have only received $2 billion.
The FCC called for all comments to be submitted two weeks after the release of the proposed rulemaking was announced on Monday.
