NATIONAL COMMUNICATIONS POLICY COURSE

June 2006

Overview –

• Current Environment – Today’s hi-tech revolution continues to yield unparalleled economic and policy pressures for the communications industry. Yet, as always the industry’s rural sector persists in aggressively embracing and offering the exciting new technologies and services associated with this era.

Underlying Issues –

• Advanced infrastructure is becoming more and more important as Americans increasingly rely upon communications services to satisfy their commerce, security, and entertainment needs. Deploying advanced infrastructure that is fully capable of offering such services should become the hallmark of our national universal service policy.

• Industry responsibilities accompany the opportunity to transition to a competitive deregulatory operating environment including fully embracing our national universal service policy, adequately compensating others for the use of their facilities, and negotiating interconnection and access matters in good faith. Specific steps:

• Universal service should be strengthened by tightening the process for determining program eligibility, providing support based on a carrier’s own costs, expanding the base of contributions, providing support for advanced systems, and removing the program from the federal budgeting process.

• Intercarrier compensation arbitrage that is plaguing today’s system must be limited, yet in a way with minimal consumer impact and with appropriate transitions for carriers and policymakers alike.

• Nondiscriminatory interconnection and access to infrastructure content, roaming, spectrum, rights-of-way, and financing at appropriate rates, terms, and conditions with government default rates should be required.

• Smart v. absolute deregulation is the key to achieving the regulatory flexibility so many seek. Generally a more flexible approach, rather than rigid deregulation will best serve consumers – and particularly those in rural markets.

Conclusion –

• American preeminence – Throughout its history America has been recognized as an economic and technological force. Policymakers must take steps to maintain and encourage this entrepreneurial spirit.