Sen. Smith (R-Ore.) was expected at our deadline to again introdu...
Sen. Smith (R-Ore.) was expected at our deadline to again introduce legislation designed to distribute a portion of the universal service fund to more states. The bill will likely be similar to his legislation introduced last year, S-1380, which…
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would change the distribution formula for the USF’s so-called nonrural fund, used to fund larger carriers’ networks in rural areas. Industry sources said the bill would have 19 co-sponsors. Rep. Terry (R-Neb.) introduced similar legislation last year (HR-1582). The bill is supported by Qwest, which serves many rural states that don’t receive funding. “Under the FCC’s latest estimates, a single state will receive more than half of this fund, and 40 states -- including many of the most rural and remote parts of the country -- will not receive a dime. This is clearly unfair and unacceptable, and we support Senator Smith’s efforts to fix it,” said Gary Lytle, Qwest senior vp-federal relations. The CLEAR Coalition, which also supports the Smith bill, released data Thurs. that said Miss. -- served by BellSouth -- received more than half the $290 million fund. The study said 3 states in 2005 would receive about 75% of the fund. Only 10 states receive funding, the report said. Since 2000, Miss. has received about $726 million from this one USF account, the report said.