S. 1822, the Communications Act of 1994: Hearings Before the Committee On ...

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S. 1822, the Communications Act of 1994: Hearings Before the Committee On ...
United States. Congress. Senate. Committee On Commerce, Science, And Transportation
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What happens to rate integration? I heard your comment, Mr. McCormick. Are we still going to have the same capability for rate integration under this bill, in your opinion? Does the section that imposes upon cable, if they go mto telephone, the obligation to contribute? Does that really keep up the cross-subsidy, as far as the total rate integration for the country?
Mr. McCormick. I think, Senator, it depends on how it is admin- istered. I think our view is to remain fairly skeptical about the
...uni- versal service fund, in what is stated ablout tnat and how it will be administered. Lots of words about ability to pay. Lots of words about services in kind as opposed to cash. I have some real skep- ticism about the universal service obligation and how that would be shared.
In Maryland, for example, one competitor was just allowed to compete. They were given the ability to compete for residents and business service. They chose to compete for business and govern- ment services only, lliere is no universal service obligation being paid by that.


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