In March of 2005, McLean & Brown released the initial version of Universal Service – Rural Infrastructure at Risk . The current Release 2.0 of this document contains significant modifications from the prior version, including updated data, charts and tables, as well as an updated section describing necessary policy changes. Major data items and policy changes that the reader will find in Release 2.0 include:

1. • Support to wireless ETCs continues to grow, and soon will exceed $1 billion annually.

    

2. • While support to wireless ETCs grows dramatically, support to incumbent wireline carriers has remained essentially constant since 2002.

    

3. • In many high-cost rural study areas two, three or as many as six or more wireless carriers have been designated for receipt of high-cost support.

    

4. • The Current ETC designation and fund distribution process is still fatally flawed and must be fundamentally reformed.

    

5. • The FCC should implement the following policy changes to ensure that universal service goals continue to be achieved:

   • 1. Fix the USF collection mechanism;

   • 2. Establish uniform criteria for identifying rural areas that can support just one Carrier of Last Resort;

   • 3. Establish separate funding mechanisms for wireline and wireless carriers;

   • 4. Reform intercarrier compensation consistent with universal service goals.

6. • Certain proposals for legislative and/or policy reform would actually make the situation worse for rural consumers.