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Hearing of the Communications Subcommittee of the Senate Committee on Commerce, Science and Transportation

Date: April 2, 2003
Location: Washington, DC
Issues: Transportation

HEARING OF THE COMMUNICATIONS SUBCOMMITTEE OF THE SENATE COMMITTEE ON COMMERCE, SCIENCE AND TRANSPORTATION

SUBJECT: THE FUTURE OF UNIVERSAL SERVICE

SEN. GORDON SMITH (R-OR): Thank you, Mr. Chairman, for holding this important hearing. I was not here when the '96 Act was passed, but I remain concerned that the FCC's High Cost Fund and how it's affecting rural America-for example, in one of its current FCC rural programs, Oregon, my state, receives no support simply because of the way the FCC classifies certain telephone companies as rural carriers and non-rural carriers.

Under this rule, the non-carrier that serves rural Oregon is not considered a rural carrier simply because it serves in addition parts of an urban area like Portland, Oregon, and they're concerned that it has the ability to cross-subsidize the support of a rural town like La Grande, Oregon. These rural customers should be able to take advantage of the rural - of the universal service funding and I hope the FCC will take the necessary steps to reform universal service and distribute funds more equitably across the nation.

Thank you, Mr. Chairman.

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