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À ?        ? ? ?      ?    8?       ? ? ~  ?  ? ?  ? ?  ?    ?  ? ??  ?   ?   ? ??  ?   ?  ? ? ? ? ? ? ? ? ?  ? ?   ?   ?   ?  ?  ? ?? ? ? ??? ~?   ? ? ? ?? ? ??  ? ? ??  ?  ?  ?À? ? ?? ?? ?? ? ? ? ?? ?? ??? ? ?? ?? ? ? ?? ? ?? ??  ??  ???  ?  ?  ? ?? ??  ?  ?  >?  ?  ?? - ?: 9 4ǀ? ?4 4 4? 4 4 4 4 5? 5 4 ?4 ?4 5 5 5 ?1? ?1 ?1 ?1 ?0 1x 1 / /? ?/π / / / .? ??.? ?. <. - - - --,,?,,-?----?+?* ??* ?+,>,,,?,?,?,--.?.?.?.%?À%%%%%%?%%?%?%?%&&'''?'?'?''?'())))x)?)?)?))*+++ǀX? π? ? ??? ##?&#&#? %#0%#x?%#?x%#?|%#?%#?%#?%#?%#%#%#%# ?%# $# ?$#?$# $# ?$# $#$#$#$#$#$#$#$###??####?##?##?#$ ?#$'$?'$'*'*'+'++XC X-  #XP\  P6QXP#L"nv X-  `$#K2pPG;ǐ#News media Information 202 / 4180500 `$FaxOnDemand 202 / 4182830 `$Internet: http://www.fcc.gov `l!$0 ftp.fcc.gov  L-#&h2pPG;P(&#Federal Communications Commission 1919 M Street, N.W. Washington, D.C. 20554  c#^2pPG;#y:  dddy  L9{i#^2pPG;##,92pPG;,#This is an unofficial announcement of Commission action. Release of the full text of a Commission order constitutes official action. See MCI v. FCC. 515 F. 2d 385 (D.C. Cir. 1974).  y: 5 dddhy  L9i U 1  1  Figure 1  Figure 1 y!HH,,@Uddfcclogo.wpgHHy! X dd 8u H#S2pPG;# NEWS L  #XP\  P6QXP##x6X@8; bX@## XP\  P6QXP#Report No. CC 989 COMMON CARRIER ACTION`! April 10, 1998  X-  COMMISSION SUBMITS REPORT TO CONGRESS ON  X- UNIVERSAL SERVICE Th$(CC Docket No. 9645) pp ppIn a Report to Congress submitted today, the Commission revisited many of its major decisions related to the implementation of the universal service provisions of the Telecommunications Act of 1996. Today's Report is consistent with the Commission's aim of ensuring that lowincome and rural consumers have access to local telephone service at affordable rates and that an evolving level of telecommunications services are available and affordable for all Americans. At the same time, the Report reaffirms the Commission's commitment to encouraging the continued development of new services and technologies. ppAs required by Congress, the Commission analyzed several definitions in the 1996 Act and the impact of the Commission's interpretation of those definitions on the current and future provision of universal service.  $}   $} The major findings of the Report are detailed below.  X4- Definitions and Policy Implications for Universal Service and the Internet ppThe 1996 Act requires providers of interstate telecommunications services to contribute to universal service funding mechanisms on an equitable and nondiscriminatory basis. Pursuant to Congress's directive, the Commission reviewed various statutory definitions, including definitions of "information service," "telecommunications," and "telecommunications service." The Commission  X-concluded, as it had in its Universal Service Order, that the categories of "telecommunications service" and "information service" in the 1996 Act are mutually exclusive and consistent with preexisting definitions. The Commission found generally that Congress intended to maintain a regime in which information service providers are not subject to regulation as common carriers merely because they provide their services via telecommunications. The Commission also reaffirmed that information service providers are not subject to universal service obligations, the  X-access charges paid by long distance $}  providers $} , or rate regulation.  $}  $}  $}   $}  $}    $}  $} " $}  $} " 0*F"F" "  $}  $}  $}  $}  $} ppThe Commission stated that its analysis of these important definitional issues  $}  $} reflects a consistent approach that will safeguard the current and future provision of universal service to all Americans and will achieve the 1996 Act's goal of a "procompetitive, deregulatory" communications policy. Thus, the Commission found, in general, that continued growth in the information services industry will buttress, not hinder, universal service.  Xv-  X_-pp The Commission stated that the provision of transmission capacity to Internet service providers constitutes the provision of "telecommunications."  $}   $} As a result, telecommunications providers offering leased lines to Internet service providers must contribute to universal service support mechanisms. The Commission found that at least some leasedline providers currently are complying with that requirement, and the prices paid by Internet service providers for their leased lines reflect that universal service obligation. As Internetbased services grow, Internet service providers will have a greater need to lease lines. The payments for those additional leased lines will in turn lead to increased universal service contributions by leasedline providers. ppIn cases where an Internet service provider uses its own transmission facilities to provide an information service, the Report notes that the Commission's rules currently do not require$} that Internet service provider $} s $}  to contribute to universal service $}  support $}  mechanisms. The Commission stated that, as a theoretical matter,  $} it may be advisable to exercise its discretion under the statute to require such providers to contribute to universal service. The Commission acknowledged, however, the difficulties associated with determining the amount such an Internet service provider should contribute to universal service. ppThe Commission also examined the application of the statutory definitions to various new services, as required by Congress. In particular, the Commission reviewed services that are generally described as Internet telephony services. Some forms of Internet telephony involve the use of ordinary telephone handsets and employ an Internet protocol (IP) in routing calls to their destination. The Commission observed that certain forms of $}such phonetophone IP telephony lack the characteristics that would render them information services within the meaning of the statute, and instead bear the characteristics of telecommunications services. The Commission, however, did not find it appropriate to make any definitive pronouncements in the absence of a more complete record focused on individual IP $}  $}   $}  $}  $}  $} service offerings.  X#- Federal Funding of Universal Service ("2575") pp X` hp x (#%'0*,.8135@8: