2012-03 Supporting the Adoption of Federal Universal Service Support Contribution Mechanisms that ensure all Carriers and Services that Benefit from High Cost USF Contribute to their program’s Funding Base.

THE NATIONAL ASSOCIATION OF STATE UTILITY CONSUMER ADVOCATES

RESOLUTION 2012-03

Supporting the adoption of federal universal service support contribution mechanisms that ensure all carriers and services that benefit from high cost universal service funding contribute to the program’s funding base.

WHEREAS, Incumbent Local Exchange Carriers (ILECs) are redesigning and rebuilding their networks so that they may provide telecommunications, broadband and video services directly to subscribers over their local facilities, including the facilities that are the functional equivalent of the local loop; and

WHEREAS, the Federal Communications Commission (FCC) issued a November 18, 2011 Order that fundamentally alters federal high cost universal service support by first reducing, then eliminating in its entirety, support for voice telecommunications service and, instead, targeting all federal high cost subsidy funds to support broadband service; and

WHEREAS, the FCC’s decision to direct all federal high cost subsidy support to broadband service will provide further incentives to ILECs to modify their networks to offer broadband service; and

WHEREAS, the design of telecommunications networks, and therefore the costs of these networks, is now driven by the desire and need to provide broadband and video services so that ILECs and other voice service providers may offer bundles comprised of voice, broadband and other services; and

WHEREAS, The Telecommunications Act of 1996 requires that services included in the definition of universal telephone service bear no more than a reasonable share of joint and common costs of facilities used to provide those services; and

WHEREAS, voice telephone service has been designated by the Federal State Joint Board on Universal Service and the FCC as universal telephone service and, as such, is subject to the surcharges that will be used to support broadband if the FCC’s Order stands;

NOW THEREFORE, BE IT RESOLVED, that NASUCA urges the FCC to adopt a contribution mechanism requiring carriers and services that benefit from high cost universal service funding to contribute to federal universal service funds.

BE IT FURTHER RESOLVED, that the Telecommunications Committee of NASUCA, with the approval of the Executive Committee of NASUCA, is authorized to take all steps consistent with this Resolution in order to secure its implementation.

Adopted: June 25, 2012

Charleston, South Carolina

Submitted by the Telecommunications Committee

Abstention: Michigan