For Immediate Release January 23, 2006

CONGRESSIONAL RURAL CAUCUS ANNOUNCES TELECOM PRIORITIES FOR 2006
Strengthening of the Universal Service Fund among Caucus’s Top Priorities for New Year

WASHINGTON, D.C. – The House Congressional Rural Caucus (CRC), a bi-partisan collection of more than 140 members representing rural districts across the country, unveiled its telecommunications priorities for 2006 today, focusing specifically on ensuring that all Americans, regardless of where they live, have access to affordable and reliable communications services. The CRC, co-chaired by Reps. John Peterson (R-PA) and Allen Boyd (D-FL), announced that it will host a series of Member briefings and staff meetings, among other events, to continue to advocate on behalf of fair and affordable access to telecommunications services across the country. The CRC Telecommunications Task Force is co-chaired by Reps. Gil Gutknecht (R-MN) and Bart Stupak (D-MI).

The legislative principles that will guide the CRC’s telecommunications work this year are:

Universal Service
• The universal service fund must continue to be an industry funded mechanism and not supported through general tax revenues. The fund must also not be subject to the Anti-Deficiency Act.
• Universal service assessments shall ensure that all segments of the communications industry share in the support of this program that shall be for the purpose of constructing, supporting and maintaining advanced networks to benefit all consumers.
• The base of contributors to universal service must be expanded to include everyone who uses the infrastructure. This includes but is not limited to all providers of 2-way communications regardless of technology used.
• Universal service support distributed to a carrier must be based on actual cost of service to ensure accountability and competitive neutrality.

Intercarrier Compensation
• Carriers must be compensated for all traffic utilizing their networks.
• Carriers must identify their traffic to discourage arbitrage and Phantom Traffic.

Network Access/Interconnection
• All providers must continue to have the obligation to allow other providers to interconnect with their networks regardless of technology utilized.

Access to advanced broadband
• Investment in rural networks is essential for rural America to remain competitive and have access to advanced broadband infrastructure
• Inter-modal competition must be encouraged to drive affordable broadband to rural America.

Attached are statements from Members of the Congressional Rural Caucus:

“Rural deployment of broadband technology has long been a top priority of mine, even as far back as my time in state government,” said Rep. John Peterson (R-PA). “My experience has taught me that rural providers are the real pioneers in the field of telecommunications technology – a lesson reinforced this summer when I visited a local telephone company in my district and saw firsthand how technology is helping these firms do more with less.

“Now, Congress must do its part to support, and not impede, the progress of these rural providers,” added Peterson. “They’ve given us a blueprint on how to deploy broadband successfully, and now we as a Congress must follow their lead.”

“Rural America cannot be left behind when it comes to national policy decisions,” said Rep. Allen Boyd (D-FL). “As we re-examine the Telecommunications Act this year, we must encompass the needs of all types of communities so that all Americans can have access to advanced broadband services at affordable rates. The small telecommunications providers in our rural districts represent the sense of community and entrepreneurial spirit that made America great, and the CRC will work to ensure that these companies have a voice in developing communications laws for the 21st century.”

“The health of rural America depends in part on having the same communications services and access to information as those who live closer to urban areas,” said Rep. Tom Osborne (R-NE), vice-chairman of the Caucus. “Students, small businesses, health professionals and many others who live in rural areas can benefit greatly from new technologies made possible by modern telecommunications, and Congress must work to extend the benefits of technology to all Americans, no matter where they call home.”

“Our nation’s communications network is only as strong as its weakest link,” said Rep. Gil Gutknecht (R-MN). “And the weakest links are the points farthest from the population centers – rural America. That’s why we need make sure that rural consumers and providers have a strong, industry-backed Universal Service Fund to rely on for the future.”

“As information and technology delivery systems advance and play a larger role in our economy, education, and everyday life, rural Americans should be afforded the same opportunities as their urban neighbors,” said CRC Vice-Chairman Rep. Lincoln Davis (D-TN). “The building of communications infrastructure will create a higher standard of living much like the importance of New Deal era programs which brought electricity, running water, and better roads. Congress must not let this opportunity slip by.”

“This will be an important and busy year for rural telecommunications issues,” Rep. Bart Stupak (D-MI) said. “The Members of Congress on both sides of the aisle who represent rural areas recognize the importance of the debate. We understand that broadband is not a luxury; it is a necessity for our rural communities to thrive in the 21st century. I look forward to working with my Congressional Rural Caucus colleagues and my colleagues on the Telecommunications Subcommittee to ensure that our telecommunications laws best meet the needs of rural America.”

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