Rural Telco Group Cautions FCC on National Broadband Plan

NTCA says current plan may not incent broadband deployment in rural America

ARLINGTON, Va., March 16 /PRNewswire-USNewswire/ -- The National Telecommunications Cooperative Association (NTCA) hailed the FCC for its significant work on the National Broadband Plan, particularly on portions of the plan that focus on reforming the federal Universal Service Fund (USF).  However, the group says other aspects of the plan may not incent broadband deployment in rural America and must be addressed.

NTCA supports targeting future USF support through the proposed Connect America Fund to areas of the nation that cannot support broadband deployment by a single provider without USF support -- a move that appears conceptually consistent with NTCA's own broadband plan.  

"The plan takes a critical first step toward making universal broadband a reality for every American, by recognizing the integral role of USF reform in ensuring a viable broadband infrastructure for the future," said NTCA Chief Executive Officer Michael E. Brunner.  "But to truly achieve the goal of universal broadband, the plan must accurately account for all of the costs associated with providing high-quality, affordable broadband to rural and remote areas throughout the country.  Put simply, the plan fails to do this right now."  

Of particular concern to NTCA are the plan's current failure to allow rural broadband providers to adequately recover lawful costs related to universal service and intercarrier compensation, failure to account for vital costs associated with carrier of last resort obligations, and the recommendation to eliminate rate-of-return regulation for all carriers regardless of economies of scope and size.  

"Collectively, these aspects of the plan would discourage rural investment and would make it unlikely that affordable broadband services could be further deployed and maintained in many high-cost rural areas," Brunner said.  

NTCA urges the FCC to consider these issues as it undertakes the process of further developing and implementing the National Broadband Plan and looks forward to working constructively with the FCC and other parties to make the goal of universal broadband a reality.

The National Telecommunications Cooperative Association is the premier association representing more than 560 locally owned and controlled telecommunications cooperatives and commercial companies throughout rural and small-town America.  NTCA provides its members with legislative, regulatory and industry representation; meetings; publications and educational programs; and an array of employee benefit programs.  Visit us at www.ntca.org.

Contact: Caitlin Colligan, 703-351-2086, [email protected]

SOURCE National Telecommunications Cooperative Association