Snowe Fights to Improve Wireless Communications in Maine and Rural America

Press Release

Date: June 14, 2007
Location: Washington, DC


Snowe Fights to Improve Wireless Communications in Maine and Rural America

A proposal to freeze federal funds used to construct cell phone towers and improve wireless communications in rural areas across the country would discriminate against regions where cellular service is already poor or nonexistent, U.S. Senator Olympia J. Snowe (R-Maine) said during today's Senate Commerce Committee hearing.

Today's hearing centered on a proposal by the Federal Communications Commission and the Federal-State Joint Board on Universal Service to cap payments to the Universal Services Fund (USF) for competitive eligible telecommunications carriers (CETCs). Since most CETCs are wireless carriers serving rural areas of the country, this proposal would unduly deter investment to expand wireless service in Maine and rural America.

"The recommended cap to the USF is discriminatory against my state and other sparsely populated areas of this country," Senator Snowe said. "Substandard or nonexistent wireless service is not merely an inconvenience. When one out of every two 911 calls is placed with a cell phone, as is the case in Maine, lack of a reliable wireless signal on one's phone could literally be a matter of life and death."

Maine has benefited from USF funding. Two of the state's wireless carriers - U.S. Cellular and Unicel - have relied on the fund to build new cell-phone towers. Last year, U.S. Cellular used USF funding to build 6 of the 12 cell phone towers it constructed in Maine. Both companies were counting on receiving USF funding to continue expansion of wireless coverage in Maine.

"If these carriers are denied funding to which they are otherwise entitled, construction of additional cell phone towers in underserved areas will be delayed, as will the local residents' access to the telecommunications services the rest of America takes for granted," Senator Snowe said. "How well does this recommendation bode for U.S. Cellular's planned construction of 32 more towers? Cutting this funding would be the wrong direction for an area of the country that already lags far behind in cell phone service."

Lack of wireless service also hinders a region's ability to attract new economic growth and development and makes it harder for local law enforcement personnel to effectively and efficiently serve the community.

"No one denies that the USF is in need of reform, but any solution must comprise a visionary future for rural America, and must be even-handed, applying equitably to all segments of the voice communication industry," Senator Snowe said. "The entire world revolves around wireless communications and everyone, from the rural areas to the urban centers, should have access to it."

Senator Snowe sent FCC Chairman Kevin Martin a letter on June 5 urging that the proposal to cap contributions to the USF be reviewed and reconsidered. A copy of that letter is attached to this release.


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