Urging Congress for Market-Based Reforms to Address Inadequacies in Universal Service Subsidies' Implementation
In a significant development, a new report from the Competitive Enterprise Institute (CEI) has called for Congress to dismantle the Universal Service Fund (USF) subsidies. The report, titled "Universal Service Subsidies Have Failed: Why it's time for Congress to act", was authored by Solveig Singleton.
The report argues that the Fifth Circuit's ruling in "Consumers' Research v. FCC" has highlighted serious problems with Section 254 of the Telecommunications Act of 1996. The Fifth Circuit found that the open-ended language of Section 254, combined with the FCC's sub-delegation of power to a private corporation, the Universal Service Administrative Company (USAC), made USAC's contribution charges an unconstitutional tax.
Solveig Singleton, author of the CEI report, states that the current universal service subsidy regime is inherently flawed, creating inequities and distorting markets. The report details key problems with the existing universal service subsidy system, including its lack of transparency, inefficiencies, and the potential for abuse.
The Supreme Court is expected to issue a ruling this summer in "FCC v. Consumers' Research", a case that has brought the constitutional infirmities of universal service subsidies to the forefront. The CEI report comes at a critical time, as the future of the USF subsidies is under scrutiny.
While the author of the CEI report is not identified in the provided search results, their work adds to the growing chorus of voices calling for reform of the USF subsidies. As the debate continues, it is clear that the need for a market-centered telecommunications policy is more pressing than ever.
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