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 STATEMENT  OF  COMMISSIONER  ROBERT  M.  MCDOWELL 
 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. 


 Universal  Service  is  premised  upon  the  noble  concept  that  every  American,  whether  low-  income,  or  in  rural,  insular,  or  high  cost  areas,  should  have  access  to  the 
 same  kinds  of  affordable  telecommunications  services  as  those  available  in  urban  America.  1  From  generations  of  Americans  living  on  family  farms,  to  Native  Alaskans  in 
 subsistence  villages,  to  school  children  in  small  towns  along  America’s  gulf  coast,  the  Universal  Service  system  has  been  instrumental  in  keeping  Americans  connected  and 
 improving  their  quality  of  life. 
 However,  this  system  is  in  dire  need  of  comprehensive  reform.  Today’s  action  is  simply  an  interim  measure  that  will  help  bridge  the  gap  between  the  deteriorating  status 
 quo  and  a  fairer  and  more  sustainable  system  for  the  future.  I  look  forward  to  working  with  my  colleagues  as  we  move  forward  quickly  on  a  more  comprehensive  reform  effort. 


 Today,  we  adopt  interim  changes  to  the  Universal  Service  contribution  methodology  that  are  fair  and  reasonable.  By  setting  appropriate  safe  harbors  and 
 allowing  wireless  carriers  and  VoIP  providers,  in  determining  their  USF  contribution,  the  option  of  either  using  such  safe  harbor,  utilizing  traffic  studies,  or  reporting  actual 
 interstate  revenues,  we  provide  the  right  balance  of  administrative  ease  and  incentive  to  contribute  based  on  actual  interstate  and  international  revenues.  These  interim  measures 
 also  ensure  that  the  fund  remains  solvent  for  the  near  term  and  serve  as  an  important  first  step  toward  broadening  the  fund’s  contribution  base  to  ensure  equitable  and 
 nondiscriminatory  support  2  of  the  Fund  in  an  increasingly  digital  world. 
 I  thank  Tom  Navin  and  the  Wireline  Competition  Bureau  staff  for  their  hard  work  and  the  Chairman  for  his  leadership  in  this  matter.  I  look  forward  to  working  with 
 my  colleagues  to  follow  the  Chairman’s  lead  as  he  drives  the  process  of  comprehensive  reform  to  ensure  long  term  sustainability  of  Universal  Service. 


 1  47  U.  S.  C.  §  254(  b)(  3). 
 2  See  47  U.  S.  C.  §  254(  b)(  4). 
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