*Pages 1--1 from  Microsoft Word - 57831.doc*
 STATEMENT  OF  COMMISSION  DEBORAH  TAYLOR  TATE 
 Re:  Universal  Service  Contribution  Methodology,  WC  Docket  Nos.  06-  122,  04-  36,  CC  Docket  Nos.  96-  45,  98-  171,  90-  571,  92-  237,  99-  200,  95-  116,  98-  170,  Report  and 
 Order  and  Notice  of  Proposed  Rulemaking. 
 In  1996,  to  ensure  the  long-  standing  Commission  policies  of  universal  service,  Congress  required  that  every  telecommunications  carrier  that  provides  interstate 
 telecommunications  service  to  contribute  to  universal  service  on  an  equitable  and  non-discriminatory  basis.  Congress  also  permitted  the  Commission  to  require  contributions 
 from  other  providers  of  telecommunications  for  the  advancement  and  preservation  of  universal  service.  Even  today,  as  Congress  contemplates  revisions  to  the  Act,  universal 
 service  goals  remain  integral  to  their  discussions.  Today’s  item  takes  a  positive  step  toward  realizing  the  universal  service  goals  in  the  Act  by  ensuring  that  services  are 
 treated  in  a  technology-  neutral  manner  under  the  Commission’s  contribution  rules. 
 In  today’s  item,  we  clarify  our  rules  to  ensure  that  universal  service  obligations  are  shared  fairly  across  similar  services.  It  was  not  long  ago  that  discussions  of  VoIP  in  the 
 marketplace  were  mostly  hypothetical.  However,  with  current  estimates  showing  residential  VoIP  serving  over  4  million  subscribers  and  growing  rapidly,  the  marketplace 
 reality  is  knocking  at  our  door.  Given  the  rapid  marketplace  adoption  of  VoIP,  I  am  pleased  that  we  make  universal  service  obligations  clear  at  an  early  stage  so  that  we  avoid 
 unnecessary  market  distortion.  While  I  continue  to  advocate  a  light  regulatory  touch  for  nascent  services  like  VoIP,  it  is  essential  that  important  goals  like  universal  service  are 
 implemented  in  an  equitable  and  non-  discriminatory  manner. 
 The  Commission  currently  assesses  universal  service  contribution  obligations  based  on  a  percentage  of  a  provider’s  interstate  revenues.  While  the  Commission  has  consistently 
 made  clear  that  it  continues  to  prefer  actual  revenues,  the  Commission  has  made  available  other  means  to  estimate  interstate  revenues,  like  safe  harbors,  to  reduce  burdens  on 
 providers.  Underneath  all  of  the  details  of  today’s  interim  decision  is  a  core  principle  that  all  providers  subject  to  universal  service  contribution  obligations  contribute  fairly  based 
 on  an  account  of  their  interstate  revenues.  I  look  forward  to  evaluating  comments  from  consumers,  industry,  and  other  interested  parties  as  we  further  develop  a  record  on  this 
 issue. 
 Finally,  we  must  remember  that  we  are  taking  these  actions  because  all  consumers  should  be  able  to  access  services  at  reasonable  rates  and  I  remain  committed  to  encouraging  the 
 deployment  of  new  services  to  Americans  in  underserved  regions.  That  is  important  to  all  consumers  because,  from  the  bustling  streets  of  our  biggest  cites  to  the  most  remote 
 native  villages  in  Alaska,  hundreds  of  miles  from  the  nearest  paved  road,  we  all  rely  on  a  common  communications  network  to  keep  our  families,  friends,  and  businesses 
 connected  as  a  nation.  Through  our  collective  support,  we  will  continue  to  stay  connected  and  moving  forward  as  a  nation. 
1