FARNET's Washington Update 12-19-97

[Jeff Ogden]

FYI
  -Jeff

>Date: Mon, 22 Dec 1997 11:03:24 -0500
>From: Garret Sern <garret@farnet.org>
>To: legup@farnet.org, policy@educom.edu, taskforce@educom.edu
>Subject: Washington Update 12-19-97
>
>FARNET'S WASHINGTON UPDATE --- DECEMBER 19, 1997
>
>FARNET (http://www.farnet.org) is a non-profit public interest
>Internetworking organization with a primary focus on the education,
>research and related communities.
>
>We are breaking from the series of articles initiated last week in order
>to provide our readership information on the latest FCC order
>concerning  the Universal Service Fund.  FARNET's series synopses of
>telecommunications issues will be continued in
>the next Washington Update.
>
>IN THIS ISSUE:
>
>NEW FCC CHAIRMAN ANNOUNCES "RAMPING DOWN" OF UNIVERSAL SERVICE FUND FOR
>FIRST HALF OF 1998
>___________________________________________________________________________
>_____
>
>NEW FCC CHAIRMAN ANNOUNCES "RAMPING DOWN" OF UNIVERSAL SERVICE FUND FOR
>FIRST HALF OF 1998
>
>December 19 - New FCC Chairman William Kennard announced earlier this
>week that the contributions telecommunications providers are required to
>pay into the Universal Service Fund (USF) will be reduced  for the first
>half of 1998.  According to the FCC, the USF contributions for the first
>six >months of 1998 will be limited to $625 million for schools and
>libraries and
>$50 million for rural health care providers.   The FCC reports that the annual
>contributions will not change ($2.25 billion for schools and libraries,
>$400 million for rural health care providers), and that the program will
>still begin at the start of 1998.
>
>The FCC's Third Order on  Reconsideration
>(http://www.fcc.gov/Bureaus/Common_Carrier/Orders/1997/fcc97411.html),
>issued this past Wednesday states that the administrators for the
>respective funds should "collect only as much as required by demand".
>Apparently due to delays in implementing the USF process, the FCC has
>determined that less money will be disbursed to recipients in the first
>half of 1998 than originally thought.  According to the FCC, most
>schools and libraries will not implement the networking technology
>improvements until the summertime; contributors should not be required
>to fully pay into the fund until the recipients actually need the money.
>
>The move has caused some discomfort and skepticism in the education
>community.  Will the FCC increase the contribution rate during the
>latter half of 1998 to make up the difference, or will Congress ensure
>that it doesn't need to?   When Congress reconvenes in late January, the
>commerce committees are expected to review the entire Telecommunications
>Act of
>1996.  The contribution scheme for the USF will undoubtedly face some
>close scrutiny.
>
>____________________________________________________________________________
>
>Written from FARNET's Washington office, "FARNET's Washington Update" is
>a service to FARNET members and other interested subscribers. We
>gratefully acknowledge EDUCOM's NTTF and the Coalition for Networked
>Information (CNI) for additional support. If you would like more
>information about the Update or would like to offer comments or
>suggestions, please contact Garret Sern at garret@farnet.org.