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 Federal  Communications  Commission  FCC  04J-  1 
 SEPARATE  STATEMENT  OF  COMMISSIONER  KATHLEEN  Q.  ABERNATHY 
 Re:  Federal-  State  Joint  Board  on  Universal  Service,  Recommended  Decision 
 This  Recommended  Decision  addresses  several  critical  issues  regarding  the  distribution  of  universal  service  support  to  carriers  serving  rural  areas.  These  issues 
 concern  the  designation  and  funding  of  eligible  telecommunications  carriers  (ETCs)  in  rural  areas  facing  competition,  and  they  go  to  the  heart  of  the  Commission’s 
 administration  of  the  federal  high-  cost  support  mechanisms.  As  Chair  of  the  Joint  Board,  I  have  made  this  undertaking  our  highest  priority,  and  I  am  grateful  that  my  colleagues 
 have  responded  with  extremely  thoughtful  recommendations.  While  our  work  continues  in  some  important  respects,  I  am  proud  of  the  progress  we  have  made,  and  I  commend 
 my  colleagues  and  the  outstanding  staff  for  their  diligent  and  insightful  participation  in  this  proceeding.  We  were  able  to  reach  consensus  on  several  critical  issues  and  we 
 narrowed  our  differences  on  others.  Where  we  have  been  forced  to  disagree,  our  divergences  have  been  principled  and  respectful.  It  has  been  a  privilege  for  me  to  serve 
 with  such  a  committed  group  of  public  servants. 
 A  major  impetus  for  initiating  this  proceeding  was  widespread  uncertainty  regarding  the  appropriate  standards  for  determining  whether  the  designation  of  a 
 competitive  ETC  serves  the  public  interest.  We  have  responded  to  requests  for  guidance  from  state  commissions  and  carriers  by  setting  forth  a  comprehensive  set  of 
 recommended  minimum  standards  for  the  designation  of  ETCs.  As  I  explained  in  a  recent  FCC  designation  decision,  I  believe  that  an  ETC  must  be  prepared  to  serve  all 
 customers  upon  reasonable  request,  and  it  must  offer  high-  quality  services  at  affordable  rates  throughout  the  designated  service  area.  1  State  commissions,  acting  under  section 
 214(  e)(  2),  and  the  FCC,  acting  under  section  214(  e)(  6),  plainly  should  be  able  to  impose  conditions  designed  to  ensure  that  all  ETCs  are  appropriately  qualified.  Perhaps  most 
 importantly,  the  certifying  authority  should  make  sure  that  a  prospective  ETC  has  the  ability  and  commitment  to  build  out  facilities  as  necessary  to  serve  the  entire  designated 
 area.  I  am  pleased  that  my  federal  and  state  colleagues  have  unanimously  agreed  on  this  principle  as  well  as  other  core  standards  that  should  make  the  designation  process  more 
 rigorous,  and  also  more  uniform  and  predictable.  I  hope  that  state  commissions  and  the  FCC  heed  this  guidance  in  upcoming  designation  proceedings. 


 The  Commission’s  other  principal  charge  to  the  Joint  Board  was  to  consider  a  variety  of  means  to  ensure  the  sustainability  of  high-  cost  funding  in  rural  areas  as 
 1  Separate  Statement  of  Commissioner  Kathleen  Q.  Abernathy,  Federal-  State  Joint  Board  on  Universal 
 Service,  Virginia  Cellular,  LLC  Petition  for  Designation  as  an  Eligible  Telecommunications  Carrier  in  the  Commonwealth  of  Virginia,  Memorandum  Opinion  and  Order,  CC  Docket  No.  96-  45,  FCC  03-  338  (rel. 


 Jan.  22,  2004). 
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