NTCA Urges FCC Not to ‘Bungle’ USF Reform

The National Telecommunications Cooperative Association (NTCA), a non-profit that represents rural telcos, vowed Monday to keep pushing for policy reforms that benefit its membership.

The group is holding its annual meeting this week in New Orleans.

Michael Brunner, NTCA’s CEO, told a standing-room only crowd that Universal Service Fund issues remain top-of-mind. The FCC’s federal-state joint advisory board last November published recommendations for USF change and a number of those suggestions came from NTCA. But there’s still work to be done, said Brunner.

“Should policymakers bungle Universal Service Fund reform, the consequences could be dire,” he said.

The biggest way to mess things up would be to implement the reverse auctions proposal, Brunner said. Reverse auctions would pit competitors against one another and award USF money to the lowest bidder. Wireline providers fear wireless carriers would have inherent advantages in the scenario because they have certain cost advantages. The auctions, said Brunner, “would threaten funding and investment mechanisms.”

He said NTCA will lobby against the auctions and called on FCC Chairman Kevin Martin to also reject them.

“Do it right,” he said. “Whatever you do, do it right.”

Brunner on Monday also praised the inclusion of small companies in the ongoing 700MHz spectrum auction and the FCC’s ban on exclusive cable contracts.

“We will not accept having conglomerates dictate how you do business,” he said.

NTCA members include companies such as Bledsoe Telephone Cooperative in Tennessee and OmniTel in Louisiana.

NTCA www.ntca.org

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