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FOR IMMEDIATE RELEASE
November 29, 2000
CONTACT: David A. Bolger
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USTA Calls on Cable Operators to Contribute to USF;
Association Seeks Expedited Declaratory Ruling

Washington, DC -- Today, the United States Telecom Association filed a written Ex Parte letter with the Federal Communications Commission asking it to require cable companies to contribute to the Universal Service Fund when offering telecommunications services over cable systems. Last September, USTA petitioned the FCC for a declaratory ruling on the universal service obligations of cable operators. Today's letter calls for expedited action on the petition.

Prompted by a recent decision by Cox Communications to cease making cable franchise payments for cable high-speed Internet access service in California, USTA reiterated its call for expedited FCC action. Citing the AT&T Corporation v. City of Portland 9th Circuit U.S. Court of Appeals decision last summer as a clear finding that broadband transmission services provided by cable operators over cable systems are "telecommunications services" and not cable services, USTA calls on the FCC to declare that cable operators must contribute support to universal service for their telecommunications services.

"The Commission should not countenance any such 'Heads I Win-Tails You Lose' gaming of federal and local regulation by cable operators," stated Lawrence E. Sarjeant, vice president of regulatory affairs and general counsel of USTA. "The Telecom Act requires all telecommunications carriers that offer interstate telecommunications services to contribute to universal service," continued Sarjeant. "When a cable operator offers high speed data services over a cable system, it is a telecommunications carrier that offers an interstate telecommunications service.

"Immediate action is needed," said Sarjeant. "To USTA's knowledge, Cox has given no sign that it plans to contribute to universal service even though, when offering high-speed data services, it is a telecommunications carrier that is obligated by section 254(d) of the Act to contribute to universal service.

"Commission inaction here, especially in light of Cox's declaration, will signal a regulatory policy preference in favor of cable high-speed data services," said Sarjeant. "Cable's position in the high-speed data services market provides no basis for special regulatory dispensation."

Sarjeant stated that no firm or technology currently dominates the high-speed, or broadband, data services market. Accordingly, service providers that offer functionally equivalent, high-speed data services should receive the same deregulatory treatment, consistent with their status as common carriers.
      

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For over a century, USTA has represented the interests of service providers in the dynamic telecommunications industry. Today, USTA is the nation's premier trade association representing the converged telecom industry, serving more than 1,200 telecom companies worldwide that provide local exchange, long distance, wireless, Internet, and cable services.


Click here to see the full text of the letter sent to Chairman William Kennard of the FCC.