Additional Problems (Continued)

• A Fund That is Too Small Will Harm Rural America

  • Increased reliance on vulnerable access charges
  • Investment and advanced services drawn to urban areas
  • Rural consumers become “have-nots”

• Advanced Services Will Come Fastest by Letting Markets Work

  • Provide sufficient funding to rural areas
  • Relax rules that prevent incumbents from delivering services

    • Inter-LATA restrictions
    • Unnecessary unbundling and separate subsidiary rules

• Universal Service Fills the Gaps

  • Fully competitive market delivers advanced services to most
  • Universal service fund fills the gaps
  • The greater the role of markets, the smaller the fund