U.S. Cellular (News - Alert) has been granted the designation of Eligible Telecommunications Carrier (ETC) by the West Virginia Public Service Commission (PSC), giving the company access to an annual $7 million from the federal Universal Service Fund. These funds will be used to build and expand the wireless infrastructure for West Virginia’s rural and undeserved communities, bringing new or improved service to approximately 405,000 residents.

 

The Universal Service Fund was created by Congress in 1996 to make modern telecommunications infrastructure available to rural areas in the U.S. All telecommunications companies, as well as long distance companies, local telephone companies, and wireless carriers, proving interstate services contribute to the fund (most often as a line item charge on customers’ phone bills). Support from the fund can be obtained only after the company is certified as an ETC.

 

U.S. Cellular is expected to build as many as 70 new cell sites over the next five years, assuming continued support from the USF at the forecasted levels.

 

“We are extremely pleased with this decision and thank the West Virginia Public Service Commission for its timely and thoughtful review of our application,” said John Rooney, U.S. Cellular president and CEO, expressing his positive views about the new designation. “This designation will enable us to provide more rural West Virginians with access to dependable wireless services -- the same services that urban folks now take for granted.”

 

Senator John Rockefeller commented: “Nowhere is the need for affordable and reliable wireless service greater than in the more rural areas of West Virginia, where many consumers can tell you down to the mile marker where they lose their service.”

 

Rockefeller continued: “I commend U.S. Cellular for making the decision to expand their services in West Virginia, and look forward to working with them in the years ahead.”

 

However, although expanded access to wireless service in rural communities being provided by the USF has demonstrated the benefits, the Federal Communications Commission (FCC (News - Alert)) is considering a cap on the Fund’s wireless section for several months, despite the fact that overall wireless contributions to the USF have increased since last year. Significant opposition from public safety officials, rural citizens, and key political leaders offset the push for a cap.

 

Speaking on this issue, Rooney went on to say, “Of course, we remain concerned about the proposed cap on universal service funding for wireless that's currently in front of the FCC. It is clear that states are doing their part to access this desperately needed federal support, but if the cap goes through, the federal funds necessary to help us expand West Virginia’s rural networks could be significantly reduced or indefinitely delayed. It’s up to the FCC, now, to do right by rural Americans and continue to provide USF support at sufficient levels so that we can bring the same benefits to West Virginia that we have brought to every state where we have received USF support.”