STATEMENT OF 
COMMISSIONER MICHAEL J. COPPS 

Re:  	Federal-State Joint Board on Universal Service 

      I am pleased that the Commission is taking interim steps toward ensuring that 
every carrier contributes on an equitable and nondiscriminatory basis to universal service.  
Without today's action, consumers of long-distance services would have seen a 
significant increase on their bills as of April 1.  
      
      Notwithstanding the actions we take today, we must continue to look for long- 
term solutions that will put the fund on a solid footing to preserve and advance universal 
service.  In the abstract, I find much to recommend a revenue-based system.  It is 
undoubtedly equitable and nondiscriminatory for those who use the network more to 
contribute more to further the goals of universal service.  That being said, I am fully 
cognizant of the pressures on our revenue-based system that are detailed in our decision 
today.  For that reason, I am willing to consider changing our methodology for assessing 
carrier contributions to the universal service fund.  Before I would agree to any paradigm 
shift in our methodology and the attendant administrative costs, however, I want to be 
certain that our methodology meets the statutory requirements and is administratively 
workable.  
      
      I also urge the Commission to address expeditiously the issue of broadband 
providers' contribution to universal service.  I am disappointed that the current disparity 
under which DSL providers contribute and cable modem providers do not will continue 
for an indefinite period of time.  When the Commission finally addresses this issue, I 
hope we will do so in a manner that does not narrow the contribution base and undermine 
the sufficiency of the fund.  We must also work to avoid a system that opens the door to 
regulatory arbitrage or distortions in the market.  I would also stress my belief that 
broadband will satisfy the statutory criteria for inclusion in the list of supported services 
in the near future.  
      
      As we move forward with this contribution methodology proceeding, let us also 
recognize that taking action on the contribution side is only half of the equation.  The 
Commission and the Federal-State Joint Board on Universal Service must also address 
distribution issues if we are to confront all of the pressures on the fund.  That means we 
must complete such proceedings as the current one on portability of universal service in 
markets with competition.  
      
      Finally, I hope we will work closely with our state colleagues as partners on these 
universal service issues.  The statute makes clear that Federal and State governments each 
have a significant role to play in preserving and advancing universal service.  It is only 
through a cooperative effort that we will meet our statutory obligation to ensure that all 
Americans, no matter who they are or where they live, have access to reasonably 
comparable services at reasonably comparable rates.  Each and every American should 
have access to the best, most accessible, and cost-effective communications system in the 
world.  In this modern era, that is a fundamental right.