The recent decision of the Federal Communications Commission (FCC) to cap the Universal Service Fund (USF), despite months of vocal opposition from thousands of Americans, is deeply disappointing. We are concerned that the FCC simply doesn’t understand the need for additional and improved wireless coverage in rural America. U.S. Cellular has fought a cap on wireless carrier access from the start, and our combined efforts with thousands of rural Americans over the past year forestalled it as long as possible.
Thanks to these thousands of consumers and key leaders across the nation, we have successfully held the FCC at bay for many months. As part of the Connecting Rural America coalition, in 2007 more than 4,000 residents filed comments with the FCC, and more than 3,000 people contacted their members of Congress.
The FCC’s decision to cap the USF is hard to square with the Telecommunications Act of 1996, which Congress enacted to ensure that rural areas benefit from advanced telecommunications technologies like wireless. By enacting this cap, the FCC either clearly misinterpreted or simply disregarded the 1996 Act.
The FCC doesn’t seem to recognize how successful the USF has been in delivering the benefits that Congress promised.
Thanks to support from the USF, U.S. Cellular has been able to expand its networks in rural communities and help ensure that wireless signals go strong – and stay strong – in rural America.
As a result, law enforcement officials in these rural communities have been able to better respond to emergencies (including reports of domestic violence, car accidents or natural disasters), and prospects for new business and tourism have been stronger, improving the overall economic development of these regions.
While U.S. Cellular had hoped for no cap at all, capping the fund at March 2008 levels means that wireless providers with ETC status in individual states can draw more from the USF than if the cap had been instituted at an earlier date as had been first proposed by the Joint Board.
This decision is especially important for rural Americans across the country who have been paying millions into the fund and deserve the same reliable services as urban residents. It is clear states are doing their part to access this desperately needed federal support, but now the federal funds necessary to help expand rural networks will be indefinitely delayed.
U.S. Cellular will continue to use a combination of federal universal service support and internally generated capital to expand its network into rural and underserved areas. Rural Americans pay into the USF and deserve dependable wireless service – resources that urban residents often take for granted.
John E. Rooney is president and CEO of U.S. Cellular.
FCC decision impacts rural Americans
By John E. Rooney







