The Prepaid Press - Prepaid Phone Call Association Files Comments on USF

05/26/2013

Prepaid Phone Call Association Files Comments on USF

APPPA Urges FCC to Consider Consumers First

WASHINGTON, DC (July 16, 2012) The American PrePaid Phonecall Association, APPPA, has completed its first major public filing with the FCC. The comments were in response to an FCC request for industry input on a proposed new set of rules for calculating and collecting the USF, Universal Service Fees, from prepaid phone call providers and their customers. USF was originally designed to provide subsidies to consumers in rural or underserved areas who might not be able to get access to telecommunications services. It has since been expanded to include financial support for a wider variety of services, including intercity Internet access.

"One of the primary reasons that APPPA was formed was to protect the interests of our customers, the consumers of prepaid phone call services," said Brian Pla, VP of sales and platform service, Auris, an APPPA founding member. "Whatever the FCC does to restructure USF must put the interests of consumers first. Without them, there is no industry." Pla said that it is all too easy for the Commission and participants in the industry to worry about their concerns, but the consuming public must be the first consideration in any changes to be made. Auris and its sister company, CIMA, provide hosting services for companies who offer prepaid telephone services to a wide range of consumers.

The FCC's request for comment included a long list of proposed changes and alternatives and asked for industry comment on the proposals. In its filing, APPPA urged the Commission to make consumer fairness a primary concern in the formulation of any solution to USF. APPPA also pointed out the challenge and cost that USF contributions represent to the service providers would likely end up in higher end user pricing. Finally, APPPA strongly rejected the FCC suggestion that international revenues be included in USF because this would unfairly burden the most vulnerable consumers with disproportionately higher levels of contribution.

APPPA will work with the Commission on the formulation of a new USF policy and will actively advocate for the best interests of the prepaid phone call industry and its consumers.

Source: APPPA