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CWA Position on FCC Action |
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Thursday, 30 October 2008 |
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On October 27 CWA sent a position letter to the Federal Communications Commission (FCC) on its proposal to reform existing universal service subsidies for a broadband world. The proposal is scheduled for a vote on November 4.
The FCC proposes two fundamental changes. First, the FCC proposes to reduce over a 10-year period the access charges that long-distance and wireless companies pay to local companies to complete their calls; and second, the FCC proposes requiring companies that receive federal universal service subsidies to serve high-cost rural areas to build broadband to 100 percent of their service areas within five years.
In our letter, CWA expressed support for the general framework of the proposals, which modernizes for the Internet age a broken subsidy system set up 24 years ago. The reform would level the competitive playing field with cable, which has gamed the current system. At the same time, CWA strongly urged the FCC to create a stronger transition mechanism for rural mid-sized carriers, such as Embarq, Windstream, Frontier, Iowa Telecom, and Fairpoint. This is the time in which we need more, not less, support for investment in rural broadband and job creation in rural America.
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