Rep. Walden to FCC: Cap USF Fund

House Communications Subcommittee chairman Greg Walden
(R-Ore.) has asked the FCC to cap the Universal Service Fund as part of its
efforts to reform it.

In
a letter
to acting chairwoman Mignon Clyburn, Walden said that rather that
leaving the charge to consumers to pay for the subsidy would leave it open to
"endless expansion."

"The FCC should continue its efforts to curb waste and
abuse and cap the overall fund at current levels," said Walden in the
letter. "It should then issue a referral to the Federal-State Joint Board
[which administers the fund] on whether to adopt expansion proposals and, if
so, how to implement them within the cap."

Walden is concerned about various proposals to expand the
program, which is being migrated to support broadband deployment -- universal
broadband is a White House priority. He said he was "somewhat
relieved" that the plan was to pay for expansions with "savings"
from elsewhere in the fund, but was still worried.

The FCC this week has scheduled a vote on
reforms/expansion of the USF's E-rate program to help get higher-speed
broadband to schools.

John Eggerton

Contributing editor John Eggerton has been an editor and/or writer on media regulation, legislation and policy for over four decades, including covering the FCC, FTC, Congress, the major media trade associations, and the federal courts. In addition to Multichannel News and Broadcasting + Cable, his work has appeared in Radio World, TV Technology, TV Fax, This Week in Consumer Electronics, Variety and the Encyclopedia Britannica.