Contact: Ashley Creel
March 13, 2009 – On March 12, 2009 TPI Vice President for Research and Senior Fellow Scott Wallsten testified before the House Energy and Commerce Committee, Subcommittee on Communications, Technology, and the Internet on reforming the universal service high cost fund. Subsidies from the high-cost fund to rural telecommunications providers have increased from $1.7 billion in 1999 to nearly $5 billion today. Wallsten recommended moving from the current inefficient system to one that awards subsidies through competitive bidding. Such reverse auctions for universal service have been used successfully in other countries and could reduce subsidies and benefit consumers.
Wallsten’s testimony is available on the TPI website.
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