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 STATEMENT  OF  COMMISSIONER  JONATHAN  S.  ADELSTEIN 
 Re:  Regulation  of  Prepaid  Calling  Card  Services,  Declaratory  Ruling  and  Report  and  Order,  FCC  06-  79,  WC  Docket  No.  05-  68  (June  1,  2006). 
 I  support  this  Order,  which  further  clarifies  the  Commission’s  rules  for  prepaid  calling  card  services  and  takes  another  step  to  solidify  the  base  of  contributions  to  the  universal  service 
 fund.  Universal  service  is  one  of  the  bedrocks  of  telecommunications  policy,  and  the  Commission  is  charged  with  ensuring  that  it  is  on  solid  footing. 


 This  is  the  Commission’s  second  Order  addressing  the  regulatory  status  and  universal  service  obligations  of  calling  card  providers.  When  we  adopted  the  original  calling  card  order, 
 last  spring,  I  called  on  the  Commission  to  act  quickly  to  determine  the  regulatory  treatment  for  the  two  remaining  calling  card  variants:  menu-  driven  cards  and  cards  that  utilize  IP  transport. 
 So,  I’m  pleased  that  we  clarify  today  that  all  prepaid  calling  cards  will  be  subject  to  a  level  regulatory  playing  field. 


 This  Order  finds  that  these  additional  calling  card  services  are  telecommunications  services,  a  decision  that  was  widely  supported  in  the  record.  I  do  have  concern  about  the 
 Commission’s  decision  to  limit  retroactive  application  of  our  decision  for  menu-  driven  services.  Commenters  made  strong  arguments  that  the  Commission  should  have  taken  a  more  fact-  specific 
 approach  for  these  services,  given  the  equitable  nature  of  our  finding  and  the  Commission’s  history  with  this  issue.  I  approve  this  Order,  however,  because  I  support  our  effort  to  clarify 
 going-  forward  the  regulatory  status  and  obligations  for  calling  cards.  With  this  Order,  we  eliminate  any  lingering  uncertainties,  which  should  redound  to  the  benefit  all  providers. 
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