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Cox Amendment to Limit Universal Service to Voice Grade Telephone
- To: tap-info@tap.org
- Subject: Cox Amendment to Limit Universal Service to Voice Grade Telephone
- From: James Love <love@tap.org>
- Date: Tue, 23 May 1995 06:32:56 -0400 (EDT)
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TAXPAYER ASSETS PROJECT - INFORMATION POLICY NOTE
May 23, 1995
- Representative Christopher Cox (R-CA) may offer amendment
to limit universal service to voice grade telephone
service.
- Amendment may lead to higher residential ISDN tariffs
James Love (202/387-8030; love@tap.org) TAP
During the May 17, 1995 House Subcommittee on
Telecommunications and Finance mark-up on HR 1555,
Representative Christopher Cox (R-CA, voice 202/225-5611; fax
202/225-9177, staff David Sachs) offered an amendment that would
have limited payments from a universal service fund to voice
grade telephone services that are generally available on the
date the Act passes. The Cox amendment specifically would have
deleted language that would have defined universal service to
include:
"access to advanced telecommunications services and
capabilities."
The controversy concerns the new way that
telecommunications services will be priced to consumers. At
present, most states have monopoly local exchange carriers,
which charge prices set by state regulators to reflect universal
service goals, such as lower tariffs for residential consumers.
As Congress seeks to promote competition for local telephone
service, it is setting up a mechanism to support universal
service that will be funded by "equitable and nondiscriminatory
contributions" by all telecommunications providers. These funds
will be used to support universal service goals. The issue of
how the money will be spent will be decided later. In the House
bill, the decisions will be made by a joint board composed of
federal and state regulators plus a state consumer advocate.
It is anticipated that universal service funds will be used
to lower the cost of residential telecommunications services, by
lowering the allocation of joint infrastructure costs paid for
by residential consumers. By limiting the contributions to
voice grade services, Representative Cox would treat residential
ISDN services (or other digital technologies) differently than
residential voice grade services. Because ISDN or other digital
technologies would not receive any universal service
contributions at all, the cost of providing the ISDN service
would be both the incremental cost of the providing the
technology and the loss of the universal service contribution.
This is likely to lead to higher ISDN tariffs for some
residential consumers -- particularly where state regulatory
commissions have sought to provide lower ISDN residential
tariffs.
Representative Rick Boucher (D-VA) objected to the Cox
amendment, as freezing technology at present levels. Cox
staffers say he is trying to freeze regulation, not technology.
The matter was tabled until the full Commerce Committee mark-up
on the 24th.
TAP VIEW
TAP opposes the Cox amendment on universal service. We
believe the Joint Board should have the authority to redefine
universal service according to the broader public interest
criteria included in the original bill, and we believe that high
speed ISDN connections should be included in universal service.
Below is the original language for universal service, the
Cox amendment, and contact information for the Commerce
Committee.
ORIGINAL LANGUAGE ON UNIVERSAL SERVICE AND COX AMENDMENT TO
UNIVERSAL SERVICE.
1. ORIGINAL LANGUAGE
`SEC. 246. UNIVERSAL SERVICE.
`(a) Joint Board To Preserve Universal Service . -
Within 30 days after the date of enactment of this part, the
Commission shall convene a Federal-State Joint Board under
section 410(c) for the purpose of recommending actions to the
Commission and State commissions for the preservation of
universal service in furtherance of the purposes set forth in
section 1 of this Act. In addition to the members required under
section 410(c), one member of the Joint Board shall be a
State-appointed utility consumer advocate nominated by a
national organization of State utility consumer advocates.
`(b) Principles . - The Joint Board shall base
policies for the preservation of universal service on the
following principles:
`(1) Just and reasonable rates . - A plan
adopted by the Commission and the States should ensure the
continued viability of universal service by maintaining quality
services at just and reasonable rates.
`(2) Definitions of included services;
comparability in urban and rural areas . - Such plan should
recommend a definition of the nature and extent of the services
encompassed within carriers` universal service obligations.
Such plan should seek to promote access to advanced
telecommunications services and capabilities, and to promote
reasonably comparable services for the general public in urban
and rural areas, while maintaining just and reasonable rates.
`(3) Adequate and sustainable support mechanisms
. - Such plan should recommend specific and predictable
mechanisms to provide adequate and sustainable support for
universal service.
`(4) Equitable and nondiscriminatory
contributions . - All providers of telecommunications services
should make an equitable and nondiscriminatory contribution to
the preservation of universal service.
`(5) Educational access to advanced
telecommunications services . - To the extent that a common
carrier establishes advanced telecommunications services, such
plan should include recommendations to ensure access to advanced
telecommunications services for students in elementary and
secondary schools.
`(6) Additional principles . - Such other
principles as the Board determines are necessary and appropriate
for the protection of the public interest, convenience, and
necessity and consistent with the purposes of this Act.
`(c) Definition of Universal Service . - In
recommending a definition of the nature and extent of the
services encompassed within carriers` universal service
obligations under subsection
(b)(2), the Joint Board shall consider the extent to
which -
`(1) a telecommunications service has, through
the operation of market choices by customers, been subscribed to
by a substantial majority of residential customers;
`(2) such service or capability is essential to
public health, public safety, or the public interest;
`(3) such service has been deployed in the
public switched telecommunications network; and
`(4) inclusion of such service within carriers`
universal service obligations is otherwise consistent with the
public interest, convenience, and necessity. The Joint Board
may, from time to time, recommend to the Commission
modifications in the definition proposed under subsection (b).
`(d) Report; Commission Response . - The Joint
Board convened pursuant to subsection (a) shall report its
recommendations within 270 days after the date of enactment of
this part. The Commission shall complete any proceeding to act
upon such recommendations and to comply with the principles set
forth in subsection (b) within one year after such date of
enactment.
2. COX AMENDMENT
Change SEC. 246.(b)(2) Definitions of included services, to
read: (inserted language in caps]
`(2) Definitions of included services;
comparability in urban and rural areas . - Such plan should
recommend a definition of the nature and extent of the services
encompassed within carriers` universal service obligations THAT
IS BASED ON BASIC VOICE-GRADE LOCAL TELEPHONE SERVICE EQUIVALENT
TO THE SERVICE GENERALLY AVAILABLE TO RESIDENTIAL SUBSCRIBERS ON
THE DATE OF ENACTMENT OF THIS PART. Such plan should seek to
promote
[STRIKE: access to advanced telecommunications
services and capabilities, and to promote]
reasonably comparable services for the general public in urban
and rural areas, while maintaining just and reasonable rates.
STRIKE all of SEC. 246(c), Definition of Universal Service.
Committee on Commerce
PHONE FAX
REPUBLICANS
Bliley, Thomas,Chmn (VA) 225-2927 225-0011
Moorhead,Carlos(CA) 225-4176 226-1279
Fields, Jack 226-2424 226-4105
Oxley, Michael(OH)v-c 225-2676 226-1160
Bilirakis, Michael(FL) 225-5755 225-4085
Schaefer,Dan(CO) 225-7882 225-7885
schaefer@hr.house.gov
Barton,Joe(TX) 225-2002 225-3052
Hastert,Dennis(IL) 225-2976 225-0697
dhastert@hr.house.gov
Stearns,Cliff (FL) 225-5744 225-3973
cstearns@hr.house.gov
Paxon,Bill(NY) 225-5260 225-5910
Gillmor,Paul(OH) 225-6405 225-1985
Klug,Scott(WI) 225-2906 225-6942
Franks, Gary (CT) 225-3822 225-5085
Greenwood, Jim (PA) 225-4276 225-9511
Crapo, Michael (ID) 225-5531 225-8216
Cox,Christopher(CA) 225-5611 225-9177
Burr, Richard (NC) 225-2071 225-2995
Bilbray, Brian (CA) 225-2040 225-2948
Whitefield, Ed (KY) 225-3115 225-3547
Ganske, Greg (IA) 225-4426 225-3193
Frisa,Dan(NY) 225-5516 225-3187
Norwood, Charlie (GA) 225-4101 225-3397
White,Rick(WA) 225-6311 225-3524
repwhite@hr.house.gov
Coburn,Tom(OK) 225-2701 225-3038
DEMOCRATS
Dingell, John(MI) 225-4071
Waxman, Henry(CA) 225-3976 225-4099
Markey, Edward(MA) 225-2836 225-1716
Tauzin,W.J.(Billy)(LA) 225-4031 225-0563
Wyden, Ron(OR) 225-4811 225-8941
Hall, Ralph(TX) 225-6673 225-3332
Bryant, John(TX) 225-2231 225-0327
Boucher, Rick(VA) 225-3861 225-0442
ninthnet@hr.house.gov
Manton, Tom(NY) 225-3965 225-1909
tmanton@hr.house.gov
Towns, Edolphus(NY) 225-5061 225-1018
Studds, Gerry(MA) 225-3111 225-2212
Pallone, Frank(NJ) 225-4671 225-9665
Brown, Sherrod(OH) 225-3401 225-2266
Lambert Lincoln,Blanche(AR) 225-4076 225-4654
Gordon, Bart(TN) 225-4231 225-6887
Furse, Elizabeth(OR) 225-0855 225-9497
Deutsch, Peter(FL) 225-7931 225-8456
Rush, Bobby(IL) 225-4372 226-0333
Eshoo, Anna(GA) 225-8104 225-8890
annagram@hr.house.gov
Klink, Ron(PA) 225-2565 226-2274
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