FYI

REVERSE AUCTIONS GET TEPID SUPPORT
FROM UNIVERSAL SERVICE PANEL

Reverse auctions might rein in burgeoning universal
service costs, but there are pitfalls, panelists
warned Thurs. in a program sponsored by the D.C. Bar.
It’s an “interesting idea” but shouldn’t be the sole
solution, said Eric Einhorn, AT&T exec. dir.-federal
regulatory. Done right, it could be a
“market-oriented” way to downsize the universal
service fund (USF) but “the devil is always in the
details,” said Cellular Telecommunications & Internet
Assn. Asst. Vp Paul Garnett. It would have to be
implemented in a technologically- and
competitively-neutral manner, he said.

“I don’t think any one idea has come to policymakers
[on the Hill] as the ultimate solution” to USF costs,
James Reid, aide to Sen. Jay Rockefeller (D-W.Va.),
said: “It’s very hard [and] compromises have to be
made.” Reid added that “solid conclusions” must be
made the next few years about “how much to give and
get to have a sustainable program.” Rockefeller is
clear on one thing -- he defines universal service as
a way to assure his constituents access to the same
telecom services as people elsewhere at comparable
costs. There’s no “nuance” to his view on that, Reid
said.

Marlon, if you want info on how reverse auctions have
worked for USF in other countries (they've worked
well), let me know.

Mark
 


Mark C. Del Bianco 
Law Office of Mark Del Bianco 
3929 Washington St. 
Kensington, MD 20895 
301-933-7216 

Communications Law for the Digital Age 
 
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