Smith Introduces Rural Telecom Bill Amending FCC's Universal Service Program
Smith's Legislation would bring Millions of Dollars to Rural Oregon
WASHINGTON, D.C.– Today, Senator Gordon Smith (R-OR) announced that he has introduced the Rural Universal Service Equity Act of 2003 (S. 1380) to mandate a new distribution method in the Federal Communications Commission's (FCC) Universal Service Program.
"With all of the funds going to so few, this program's distribution method is patently unfair," said Smith. "Even the most rural states are denied these important grants."
The FCC Universal Service Program was created to offset the added costs of providing telephone services to rural areas, which require more infrastructure and have fewer customers than urban areas. The program, which is funded by a federal phone tax, awards grants to telephone companies for investment in rural infrastructure and for subsidizing rural customers. Under the FCC's current rules, two states receive almost 70 percent of the funds and only eight states receive the $233 million in annual support available.
Smith's Rural Universal Service Equity Act of 2003 directs the FCC to change the current formula used to determine grant awards. The bill requires the FCC to distribute the grants based on the specific area of service, rather than the current state-by-state basis. Under the new method, Oregon would receive substantial assistance for rural telephone service.
"It's surprising that this program has been able to operate under the current terms for so long," Smith said. "This bill will bring better, more affordable telephone service to rural Oregonians."
