Spring-Summer 2005

As Robert Atkinson's article explains, Voice over Internet Protocol (VoIP) services are delivering not only a host of exciting new communications options for consumers, but also some thorny challenges for our nation's telecommunications policymakers. The Alliance for Public Technology (APT) is a nonprofit organization that works to foster public policies that ensure access to advanced telecommunications technologies for all Americans. Thus, APT has a strong stake in making certain that as our nation's telecom laws are modernized to reflect the explosion of new voice, video and data applications on IP-enabled broadband networks, policies will remain in place to promote universal access to these networks at affordable prices.

Our country's Universal Service programs are only one part of the current policy framework that is being buffeted by these new technologies, but they are among its most important elements. The Communications Act was drafted more than 70 years ago, when advanced digital technologies, laptop computers, and the Internet existed only in the realm of science fiction. As Congress goes about the process of modernizing the Act to reflect the world of IP-enabled networks, however, it surely will adhere to the goals it set out in 1934: “to make available, so far as possible, to all the people of the United States . . . a rapid, efficient, Nation-wide, and world-wide . . .communication service with adequate facilities at reasonable charges. . . .” While the need to update our Universal Service programs raises a long list of complex and politically difficult issues, Atkinson rightly notes that they boil down to two principle questions: who should pay, and what should these funds be used for?

Universal Service Fund (USF) Contributions

On the contributions side, APT and a broad alliance of public interest groups have called for policies that require VoIP providers to contribute to Universal Service funds, so that all Americans continue to have affordable access to telecommunications services (see the Coalition's complete set of VoIP Principles). APT supports the rapid, ubiquitous deployment of broadband networks, but the public switched telecommunications network will continue to be the backbone of communications for a majority of Americans for some time to come. As more customers migrate to IP technologies, however, the pool of available revenues that is assessed to support Universal Service programs is declining. Unless revenue from IP services also is tapped for such assessments, Universal Service will be weakened.

USF Expenditures

On the expenditures side, we do need to shift our Universal Service programs from their traditional purpose of maintaining affordable access to legacy switched telephone services, to supporting the deployment of advanced telecommunications networks in all regions of our nation and all segments of our society. Here the challenge will be to accomplish this transition without jeopardizing the consumers who remain dependent on legacy telephone services, especially in rural areas and other high-cost regions where the deployment of broadband networks is likely to be more costly and difficult.

USF and Access to Broadband Networks by People with Disabilities

To ensure that people with disabilities have access to advanced, IP-enabled services, additional reforms will needed to both the contributions and expenditures sides of Universal Service programs. For example, only traditional carriers are currently required to contribute to the funds that support telecommunications relay services. Contributions from IP-enabled services will be needed to sustain the viability of those services, and to distribute their costs fairly. On the expenditures side, USF support should be made available to defray the costs of IP services and specialized communications devices that may be required by people with disabilities. (For more detail on these issues, see the recent congressional testimony of APT Board member Karen Peltz Strauss.)

Conclusion

In the 21 st century, access to advanced telecommunications technologies and services will be fundamental to effective communication, quality of life, and democratic participation. Universal, high speed communications networks can bring better and more affordable health care to all citizens; expand educational opportunities for lifelong learning; enable independent living for senior citizens and people with disabilities; create opportunities for jobs, economic advancement and financial independence; make government more responsive to all citizens; simplify accessibility to communications media; and, reduce inequities caused by geographic isolation of rural communities.

Our collective challenge is to develop a new policy framework that will promote the deployment of advanced networks in a way that captures their benefits for all Americans.

Daniel B. Phythyon is Public Policy Director-General Counsel for the Alliance for Public Technology (APT) in Washington, D.C.