[Congressional Record Volume 146, Number 50 (Thursday, April 27, 2000)]
[Senate]
[Pages S3023-S3024]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BURNS (for himself, Mr. Dorgan, Mr. Wyden. and Mr. 
        Baucus):
  S. 2476. A bill to amend the Communications Act of 1934 in order to 
prohibit any regulatory impediments to completely and accurately 
fulfilling the sufficiency of support mandates of the national 
statutory policy of universal service, and for other purposes; to the 
Committee on Commerce, Science, and Transportation.


                     universal service support act

  Mr. BURNS. Mr. President, I rise today to introduce the Universal 
Service Support Act, a bill that will spur increased access to 
communications services for rural America. Just a few short years ago, 
we took the dramatic step of reshaping our nation's communications 
policy by passing the Telecommunications Act of 1996. A significant 
element of that initiative was the codification of a reconstituted 
policy of universal service, which guarantees all Americans with the 
ability to access to quality communications services.
  Nevertheless, a significant impediment to the fulfillment of this 
national policy exists. There currently exist two regulatory caps that 
are limiting the amount of support that can be directed to high-cost 
infrastructure deployment initiatives that are covered under the 1996 
Act.
  The regulatory caps were first instituted in 1994 at a time when a 
significant number of communications infrastructure acquisitions were 
taking place. This was in the days prior to the 1996 Act, which 
initiated competition and deregulation into the communications 
industry. Many of the acquisitions of that time involved the rural 
exchanges of large incumbent local exchange carriers that were 
divesting themselves of properties deemed to be unprofitable or 
otherwise undesirable. The entities purchasing such exchanges were 
generally the small rural cooperative and commercial systems that have 
served large portions of the nation's rural areas for years.
  The Federal Communications Commission instituted these caps because

[[Page S3024]]

the acquiring carriers were seeking support for these newly acquired 
exchanges in order to upgrade them to the standards of the day. 
Generally this meant that universal service support was being sought 
and approved for areas which had never before received such support. 
The FCC was concerned that the level of support might escalate and in 
response it imposed both a cap on individual areas and also on the 
overall support channeling through the system. While waivers to the 
caps were occasionally granted, for all intents and purposes growth of 
universal service support other than for the addition of new lines was 
effectively halted.
  However, shortly thereafter the 1996 Act was enacted, which radically 
changed this nation's telecommunications landscape. The Act envisioned 
an evolving universal service support system which would help ensure 
the deployment of advanced services. The regulatory caps are at odds 
with this policy and must be repealed.
  We cannot permit regulatory policies that are so clearly inconsistent 
with statutory policy to stand unchallenged. A national, statutory 
policy dedicated to universal communications service exists, and we can 
no longer allow inappropriate regulatory actions to undermine its 
intent. I urge my colleagues to join me in moving this initiative 
forward to passage prior to the end of this Congress.
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