As part of its ongoing process to reform the Universal Service Fund (USF) program, the FCC issued a Report and Order yesterday strengthening its debarment rule for carriers convicted of criminal violations or civil liability cases around any of the four funds. Previously the commission's debarment rules applied only to the E-rate Program, not the High Cost, Low Income or Rural Healthcare programs.
The commission also strengthened its oversight of contributions to the fund, requiring more timely filing and payment from telecom companies, and increasing the penalties for late payments and late filing.
And finally the commission adopted performance measures for all four USF programs, saying, in a statement, "These performance measures will help ensure the effective and efficient operation of the program, including quick and thorough processing of applications."
Legislators have been pushing the FCC to reform the USF programs in light of recent news of waste and fraud around the funds management.
With the current economic climate, wireless operators face shrinking marketing budgets and reduced consumer spending.
Globally, the credit crunch is very much alive, and operators will be tightening their belts into the foreseeable future by putting off capital purchases.
