WPC; 2BVWZ 3|Rcpi)?xxx,Xx6X@JQX@HP LaserJet IIISiHPLAIISI.WRSx  @,,,,FPX@2u#Cf ZvCG Times (W1)CG Times (W1) (Bold)3|RHP LaserJet IIISiHPLAIISI.WRSXw PE37,,,,FPXPX01Í ÍX81Í/ Í/Ҋ2A o\ v 04-08-96 04:56p HR 020 8MACNormal     X` hp x (#%'0*,.8135@8:<     :}D4P T I. A. 1. a.(1)(a) i) a)T0*ÍÍ*Í ., US $x6 @      X` hp x (#%'0*,.8135@8:<     :}D4P T I. A. 1. a.(1)(a) i) a)T0*ÍÍ*Í ., US :}D4P FootnoteÍča8DocumentgDocument Style StyleXX` `  ` 2^ps k kN  a4DocumentgDocument Style Style . a6DocumentgDocument Style Style GX  a5DocumentgDocument Style Style }X(# a2DocumentgDocument Style Style<o   ?  A.  2v t z a7DocumentgDocument Style StyleyXX` ` (#` BibliogrphyBibliography :X (# a1Right ParRight-Aligned Paragraph Numbers :`S@ I.  X(# a2Right ParRight-Aligned Paragraph Numbers C @` A. ` ` (#` 2  <a3DocumentgDocument Style Style B b  ?  1.  a3Right ParRight-Aligned Paragraph Numbers L! ` ` @P 1. ` `  (# a4Right ParRight-Aligned Paragraph NumbersUj` `  @ a. ` (# a5Right ParRight-Aligned Paragraph Numbers_o` `  @h(1)  hh#(#h 2zSa6Right ParRight-Aligned Paragraph Numbersh` `  hh#@$(a) hh#((# a7Right ParRight-Aligned Paragraph NumberspfJ` `  hh#(@*i) (h-(# a8Right ParRight-Aligned Paragraph NumbersyW"3!` `  hh#(-@p/a) -pp2(#p a1DocumentgDocument Style StyleXqq   l ^) I. ׃  2+Q||Doc InitInitialize Document Style  0*0*  I. A. 1. a.(1)(a) i) a) I. 1. A. a.(1)(a) i) a)DocumentgTech InitInitialize Technical Style. k I. A. 1. a.(1)(a) i) a) 1 .1 .1 .1 .1 .1 .1 .1 Technicala5TechnicalTechnical Document Style)WD (1) . a6TechnicalTechnical Document Style)D (a) . 2yja2TechnicalTechnical Document Style<6  ?  A.   a3TechnicalTechnical Document Style9Wg  2  1.   a4TechnicalTechnical Document Style8bv{ 2  a.   a1TechnicalTechnical Document StyleF!<  ?  I.   2%1@"a7TechnicalTechnical Document Style(@D i) . a8TechnicalTechnical Document Style(D a) . PleadingHeader for numbered pleading paperP@n   $] X X` hp x (#%'0*,.8135@8:>wwP| PTtP<wAwbbC}vii}FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFPnwwPPPwPPPPwwwwwwwwwwPPjP]PPPwwwjwjwjPwwBBwBwwwwY]BwwwwjjwjwFFPw|www >FFFFPP||www]>FFFPwwwwwwwwwbPwwwTTwwPwTwbjPPPPwjjjjjjjjjjjBBBBwwwwwwwwwwwwww"H^^FPnwwPPPwPPPPwwwwwwwwwwPPw]sPPPwwwwjjTwBPBwj]PwwwjwwwwPww(wwwcwwwwwwwjjjjj]B]B]B]Bwwwwwwwwwwwwwjwwwwwwwwwwwww]wBcwjj]]NwPwwPwffwwwwwwTwwwTPPw>>wwPPTtP<wAwffC}vii}FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFPnwwPPPwPPPPwwwwwwwwwwPPw]sPPPwwwwjjTwBPBwj]PwwwjwwwwFFPwwww>FFFFPPwww]>FFFPwwwwwwwwwfPwwwTTwwPwTwfw]]]]wwwwwwjjjjjBBBBwwwwwwww"5@^;C\ccCCCcCCCCccccccccccCCDZczM`zoǐCCCccccoYoYFco7Co7ocooYMCocccYccccCcc!cccRccocccccϐYYYYYM7M7M7M7occccooooccocccczocccYcccccccccoocococcMoco7RoocᓐYYoMoMNcCccCcUUccccccFcccFCCrrc33cczCrCFtCnnyy2co6cUUnCzohbnonvyXzXshn~|y;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;C\ccCCCcCCCCccccccccccCCDZczM`zoǐCCCccccoYoYFco7Co7ocooYMCocccYcccc;;Ccrccco3;;;;CCrrccczM3;;;CcccccccccUCcccFFcocCcFcUcϐMMMMzoccccccYYYYY7777coccccccooooco"5@^#(7<>(*t(jBBjjvII}j<<<@j####((>><hardship" on the Part 15 industry). Indeed, the very reason for not requiring a license is to  -[facilitate innovation by removing the regulatory burdens associated with the licensing process.  Y"- -ZSee Amendment of the Commission's Rules to Establish New Personal Communications Services,  Y#-Second Report and Order, 8 FCC Rcd 7700, 7734 (1993). "x 0*((e"Ԍ" X- 0*+ "H III.XIn Providing Subsidies to Schools, Libraries, and Health Care Providers for  0*#Telecommunications Services the FCC Must Preserve the Incentives Created by the  0*!Competitive Marketplace In Order to Present These Users with a Full Range of  X-Choices Of Carriers and Technologies (#     0*/HIn pointed contrast to the narrowly circumscribed provisions for contribution to universal  -service support, the provisions in the 1996 Act for distribution of universal service support are  -ybroadly worded. Congress intended that access to advanced telecommunications services and  -information services would be provided throughout the country, and it placed particular emphasis  Y - -Mon services for schools, libraries, and health care providers.n  Y7-ԍSee 1996 Act  254(b)(2), (b)(6), (c)(3), (h)(2)(A).n Importantly, with respect to  -schools and libraries (and perhaps with respect to health care providers as well) the 1996 Act  -/does not restrict the availability of universal service subsidies to only statecertified eligible  Y4- -jcarriers.v4y Y^- 0*@ԍThe provisions regarding schools and libraries in Section 254(h)(1)(B)(ii) override the  -general restriction, contained in Section 254(e), that only statedesignated "eligible carriers" are  Y0- -eligible to receive universal service support. See also 1996 Act  214(e) (procedures for state  -designation of eligible carriers). The provisions regarding health care providers in Section  -.254(h)(1)(A) do not explicitly override Section 254(e), but the 1996 Act everywhere else treats these users on an equal footing with schools and libraries. Rather, the 1996 Act describes a system of subsidies under which schools, libraries  Y- -and health care providers would obtain telecommunications services at a discount, and carriers  -providing discounted service would receive reimbursement from a universal service fund to be established.  0*The central issue facing the Commission in implementing this subsidy program is its  -impact on competition. As a general matter, Metricom believes that competition is preferable  - to regulation. In this case, though, the FCC need not be guided by Metricom's belief when" 0*(("  -kCongress has made this same point abundantly clear: the 1996 Act is "An Act [t]o promote  Y- --competition and reduce regulation."X YK-ԍ1996 Act Prologue, 110 Stat. 56 (1996).X Massive subsidy programs tend to impede competition by  Y- -distorting incentives when services are not priced at economic cost.vy Y- 0*1ԍSee, e.g., MTS and WATS Market Structure, Memorandum Opinion and Order, 54  -R.R.2d (P&F) 615 at  7 ("Artificial pricing structures, while perhaps appropriate for use in  -achieving social objectives under the right conditions, cannot withstand the pressures of a  Y - - competitive marketplace."); National Assoc. of Regulatory Util. Comm'rs v. FCC, 737 F.2d  --1095, 1116 (noting incentives for uneconomic bypass when telecommunications services are not priced at cost). Moreover, the  -Commission itself has recognized that the administrative cost of enforcing the rules by which  YH- -jsubsidies are limited to use "for educational purposes" may be significant.H Y- 0*ԍSee FederalState Joint Board on Universal Service, Notice of Proposed Rulemaking and  Y-Order Establishing Joint Board, FCC 9693  8486, 103 (Mar. 8, 1996). The temptation to abuse the system will be greater when the subsidies are greater.  0*MKeeping in mind these anticompetitive effects, the Commission should attempt to minimize  -Kthe impact of this Congressionally mandated subsidy program on competition. First, the program  -must not favor one competitor over another; schools, libraries, and health care providers must  -not be guided in their choice of a carrier or service by the existence of subsidies for some but  Y4- -not all carriers and services.#4Q  Y6- 0*mԍSee Common Carrier Bureau, Preparation for Accessing Universal Service Issues 30  -(1996) ("Subsidies directed only to the incumbent service provider ... may make effective competition impossible.")# Second, the program must not favor one technology over another.  -=Wireless, unlicensed, and other alternatives to traditional landline service may prove to be the  -best choice for these public institutional users to gain access to advanced telecommunications and"0*(("  -jinformation services. Any subsidy program must present to these users a range of choices and  Y-incentives that replicates those in the competitive marketplace. " Xv- 0*9!" vIV.XNo Carrier Other Than an "Eligible Carrier" Should Be Forced to Connect its  X_-Network to Public Institutional Telecommunications Users (#     0*vThe 1996 Act requires the FCC "to define the circumstances under which a  -<communications carrier may be required to connect its network to" certain schools, libraries, and  Y - -health care providers which the 1996 Act terms "public institutional telecommunications users."U  Y7-ԍ1996 Act  254(h)(2)(B), h(5)(C).U  -Metricom respectfully suggests that the FCC use Section 214(e) of the 1996 Act to define these  ->circumstances. That section provides a mechanism by which subscribers in all areas of the  -country are assured of interconnection with at least one carrier which must offer all of the  -services that the Commission finds are necessary for schools, libraries, and health care  Y- -Zproviders.Sy Y- -0ԍ Designation as an eligible carrier is voluntary; however, in case no carrier offers a  Y- -requested service, Section 214(e) permits the state to designate an eligible carrier which must  Y- ->provide that service. See 1996 Act Section 254(c)(3) (designation of services for support of  -universal service for schools, libraries, and health care providers), Section 214(e) (requiring that eligible carriers offer all services designated under Section 254(c)).S Given the assurance of at least one eligible carrier which must offer the appropriate  -services, it makes no sense for the Commission to require any carriers other than eligible carriers  Y|-to provide interconnection to schools, libraries and health care providers.  XN-  X -V.  Conclusion  Y- X81Í/ Í/XÍ/ Í/"0*(("Ԍ 0*For the foregoing reasons, the Commission should adopt regulations relating to universal service in accordance with these comments. ` `  ,hhhRespectfully submitted,   ` `  ,hhhMETRICOM, INC.   ` `  ,hhhppX  xx  H(#(# ` `  ,hhhBy:________________________ ` `  ,hhhHenry M. Rivera ` `  ,hhhLarry S. Solomon ` `  ,hhhJ. Thomas Nolan  Yy-` `  ,hhhGinsburg, Feldman and Bress, Chartered ` `  ,hhh1250 Connecticut Avenue, NW ` `  ,hhhWashington, DC 20036 ` `  ,hhh2026379000 ` `  , ` `  ,hhhIts Attorneys Dated: April 12, 1996" 0*(("   Y- CERTIFICATE OF SERVICE ă   0*I hereby certify that a copy of the foregoing Comments of Metricom, Inc. was served this  -z12th day of April, 1996, by first class mail, postage prepaid or by hand (*) to each person on the attached service list.    ` `  ,hhh___________________________ ` `  ,hhhCheryl K. Krausz ` `  ,hhhGinsburg, Feldman & Bress ` `  ,hhh1250 Connecticut Ave., N.W. ` `  ,hhhWashington, D.C. 20036