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Universal Service Fund High Cost Reform 2007

Universal Service Fund High Cost Reform 2007. Billy Jack Gregg Director, West Virginia Consumer Advocate NARUC New York City July 16, 2007. High Cost Reform. Back to Basics What Does the Statute Say ?. High Cost Reform. Guiding Principles, Sec. 254(b):

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Universal Service Fund High Cost Reform 2007

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  1. Universal Service FundHigh Cost Reform2007 Billy Jack Gregg Director, West Virginia Consumer Advocate NARUC New York City July 16, 2007

  2. High Cost Reform Back to Basics What Does the Statute Say?

  3. High Cost Reform Guiding Principles, Sec. 254(b): ●Quality services at just, reasonable and affordable rates ●Reasonably comparable services for rural customers at reasonably comparable rates ●Access to advanced services in all regions of the Nation

  4. High Cost Reform Supported Services, Sec. 254(c): ●An evolving level of telecommunications services ●Take into account advances in telecommunications and information technologies and services

  5. High Cost Reform What services? Currently, only POTS service is supported

  6. High Cost Reform What do customers really want? • Reliable voice service in their homes and businesses • Data service in their homes and businesses • Mobility

  7. High Cost Reform Do current High Cost Support Mechanisms address these needs? NO!

  8. High Cost Reform Many rural areas lack access to: • Mobility • Broadband

  9. High Cost Reform Current High Cost Support Mechanisms For Rural Carriers • High Cost Loop Support • Local Switching Support • Interstate Common Line Support For Non-Rural Carriers • Interstate Access Support • High Cost Model Support

  10. High Cost Reform Are any of the current High Cost Support Mechanisms mandated in the statute? NO!

  11. High Cost Reform Should rethink approach to High Cost Support ●Need fund that addresses build out of broadband infrastructure in unserved areas ●Need fund that addresses build out of mobility infrastructure in unserved areas ●Need fund that addresses affordability and comparability of rates in high cost areas

  12. High Cost Reform • Do all supported services have to be supported in the same way? • Is “competitive neutrality” an impediment to reform?

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