STATEMENT OF
COMMISSIONER DEBORAH TAYLOR TATE
Re:  High-Cost Universal Service Support, Federal-State Joint Board on Universal Service, Alltel 
Communications, Inc., et al. Petitions for Designation as Eligible Telecommunications Carriers, RCC 
Minnesota, Inc. and RCC Atlantic, Inc. New Hampshire ETC Designation Amendment, WC Docket 
No. 05-337, CC Docket No. 96-45.
Today we take an important and historic step down the necessary road to real reform of universal 
service.  Specifically, the Commission takes appropriate action to rein in the explosive growth in high-
cost universal service support disbursements to competitive eligible telecommunications carriers. 
In both my role at the Commission and as Federal Chair of the Federal-State Joint Board on 
Universal Service (Joint Board), I have been clear about my commitment to the key tenets of universal 
service:  to promote the availability of quality services at just, reasonable and affordable rates, to increase 
access to advanced telecommunications services throughout the Nation, and to advance the availability of 
such services to all consumers in the U.S., no matter where they live.  At the same time, we all recognize 
that the system is outdated as competition and ever-changing technologies have caused inefficiencies in 
the current system.  I look forward to examining market-oriented solutions such as reverse auctions that 
can provide appropriate incentives for investment and efficiencies, and closely scrutinizing whether it 
make economic sense to provide ongoing support for multiple providers who ultimately compete for the 
same customers.  As we examine comprehensive reform our focus should be on encouraging efficiencies, 
as well as reviewing affordability and creating a level playing field.  Most importantly, we must ensure 
that support from the fund is being utilized as it was intended:  to provide services to those in truly high 
cost areas.  And we must do so in a way that is efficient, targeted and fiscally responsible.  As stewards of 
public funds, we must remain mindful that it is consumers who ultimately pay universal service 
contributions.
It has been almost one year since the Joint Board made its recommendation and I would like to 
reiterate my appreciation for my Co-Chair, Commissioner Ray Baum of the Oregon Public Utility 
Commission and all of the Joint Board members. Each made valuable contributions to the process and set 
aside their individual state interests to work toward a unified, national recommendation.  In addition, I 
would like to recognize the dedication and years of committed work of Billy Jack Gregg, former 
Consumer Advocate of West Virginia, and other public interest stakeholders. Their important input was 
crucial to bringing us to this point in the process.  They should all take pride in the fact that their interim 
recommendation was adopted today by the Commission and will immediately begin to curb the 
unsustainable growth-at least regarding the high cost fund.  
I want to commend members of Congress who have drafted universal service reform proposals-
the most recent from Congressman Barton whose draft is renewing discussion on fresh and innovative 
ideas.  I look forward to working with members of Congress as we progress toward comprehensive 
reform and hope we may all come together to address the issues for the good of the program. 
Now, the difficult work must begin again toward lasting and full reform to insure the viability of 
our universal service fund in this new digital age.  I humbly ask all of the providers/companies, scholars, 
economists, professors, and consumer advocates and others with unique knowledge to help us balance the 
varied and various interests and to work toward a consensus which will continue to insure the fund will 
remain for future generations.