US Carriers Push USF Reform PlanUS Carriers Push USF Reform Plan

WASHINGTON -- Six of the nation's leading broadband providers today submitted to the Federal Communications Commission (FCC) a proposal to speed broadband deployment to more than 4 million Americans living in rural areas. They also announced an unprecedented agreement with three organizations that represent small carriers on a framework for complementary reform.

The two complementary plans share key goals -- modernizing the federal Universal Service Fund (USF) so that it is focused on building and sustaining broadband networks without increasing the size of the fund, and fundamentally reforming the Intercarrier Compensation (ICC) system that governs how communications companies bill one another for handling traffic, gradually phasing down these charges.

Together, the proposals will benefit consumers and promote the goals of the National Broadband Plan, which called for overhauling these two complex systems to address the modern-day mission of supporting broadband deployment as cost-efficiently as possible.

The six companies--AT&T (NYSE:T), CenturyLink (NYSE:CTL), FairPoint (Nasdaq:FRP), Frontier (NYSE:FTR), Verizon (NYSE:VZ) and Windstream (Nasdaq:WIN)--collectively serve the vast majority of U.S. telecommunications customers, including those residing in high-cost rural areas, which are the primary focus of USF support. Joining the companies in support of reform are the National Telecommunications Cooperative Association, the Organization for the Promotion and Advancement of Small Telecommunications Companies and Western Telecommunications Alliance.

Core components of the proposal, called America's Broadband Connectivity Plan, include:

Focusing the Universal Service Fund on Broadband Deployment

Consistent with the National Broadband Plan, a new Connect America Fund (CAF) would transition the USF over five years to an exclusive focus on broadband deployment.

Key features of the plan: