[Congressional Record (Bound Edition), Volume 149 (2003), Part 19]
[Senate]
[Pages 26832-26833]
[From the U.S. Government Publishing Office, www.gpo.gov]




                   MODERN TELECOMMUNICATIONS SERVICES

  Mr. DASCHLE. Mr. President, last week the Senate Committee on 
Commerce, Science, and Transportation held a hearing on Universal 
Service, taking testimony from Michael Powell, the Chairman of the 
Federal Communications Commission. I want to commend the committee for 
examining issues affecting the preservation and advancement of 
universal service. This is a discussion that is of great interest to me 
and great importance to my State.
  We have long sought to ensure that telephone service is available in 
rural America, through direct infrastructure programs like those of the 
Rural Utilities Service, through internal telephone company cross-
subsidies and, more recently, through the universal service fund. The 
low population density in so much of our Nation makes some assistance 
necessary; the costs of wiring such areas is simply too high. Phone 
service is simply too important to our social fabric to ignore this 
challenge. We must keep it affordable for all Americans. That is why we 
need universal service.
  Access to modern telecommunications services is vital to the economy 
of my home State of South Dakota and in rural areas throughout the 
Nation. It helps new businesses develop, even if they are far away from 
their customers or clients. Telecommuting is already allowing many of 
my constituents to remain in, or move back to, their home towns rather 
than having to leave in search of employment. That is a trend we need 
to encourage and build upon. But it is only possible if rural America 
has a modern telecommunications infrastructure.
  Universal service is vital to South Dakota. Yet universal service is 
not just about rural America. It also supports telephone service for 
low-income individuals throughout the country, and telecommunications 
services and Internet access in our schools and libraries. I believe it 
is important that the country remain committed to these goals and the 
principle of universal service.

[[Page 26833]]

  Despite its importance, the future of universal service is uncertain. 
Some question the long-term viability of the current structure, as its 
funding base of interstate telephone revenue declines. I believe that 
we will need to reevaluate the universal service structure and consider 
comprehensive legislation to ensure that the program remains effective 
and affordable in the future. I am pleased that the Commerce Committee 
has begun that process.
  The committee includes the Senators who have been the most engaged on 
this front. I want to commend Senator Burns for his leadership on the 
issue, along with Senator Dorgan, Senator Stevens, Chairman McCain, and 
Ranking Member Hollings. I look forward to working with them to keep 
the universal service system strong and effective.
  Senator Gordon Smith has introduced legislation that addresses an 
important component of universal service, high cost funding for 
nonrural carriers. Today, I am cosponsoring that legislation, S. 1380, 
the Rural Universal Service Equity Act of 2003, which seeks to more 
equitably distribute that portion of universal service.
  Today, telephone companies in only eight States receive all of these 
funds. Nonrural carriers in the rest of the country, even those in 
rural States like South Dakota, receive nothing. We should reevaluate 
that distribution as part of universal service reform.
  I fully appreciate that S. 1380 only addresses one small, albeit 
significant, portion of Universal Service. It is important to focus 
attention on the need to understand and address it.
  That point made, I favor reforming the high cost support program for 
non-rural companies within the context of reform of the entire system. 
Telephone service has developed in different ways throughout the 
country, with service provided to various degrees by the Regional Bell 
Operating Companies, independent phone companies, cooperatives, 
wireless, and competitive carriers. We should keep that in mind when we 
consider alternative approaches and look at the system as a whole, not 
just focus on each individual component of universal service 
separately.
  When we do consider universal service legislation, I think the 
approach taken by S. 1380 shifting the basis of support for nonrural 
companies to costs at the wire center level, rather than statewide 
costs deserves consideration as part of a broader package. Using 
statewide costs makes it difficult for a company that serves a 
relatively large city to obtain support for rural areas that it serves 
in the same State. That can limit its ability to invest in and 
modernize its rural infrastructure.
  I do want to raise a specific concern about S. 1380. In reallocating 
some universal service funding, the bill shifts funds around, creating 
winners and losers. I am worried that this approach pits carriers and 
regions against each other, rather than uniting in a common goal of 
protecting universal service and the people who depend upon it for 
affordable telephone service in rural and low-income communities 
throughout the country. We can and should fix that problem. That is 
another reason why I think the bill should be considered within the 
context of broader universal service reform.
  I want to note a special problem with one potential loser under the 
bill. It shifts some funds that are currently allocated to Puerto Rico. 
Puerto Rico is not represented in this body. Without an advocate of its 
own to force attention to the Commonwealth's concerns, it is important 
that we all carefully consider the impact legislation can have upon 
Puerto Rico and its residents. When we address universal service, we 
should not take steps that might inadvertently reduce the availability 
and affordability of telephone and telecommunications services to the 
residents of Puerto Rico.
  In conclusion, I want to again thank the Commerce Committee for 
focusing greater attention on the future of universal service. I look 
forward to working with Senators on the committee and others concerned 
about universal service for rural residents, low-income consumers and 
our schools and libraries to lay the groundwork for legislation to 
reform and strengthen the universal service system.

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