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FCC Combines Universal-Service AgenciesUnder attack by congress, the Federal Communications Commission announced May 8 that it was merging the two agencies it established to administer the universal-service "e-rate" telecommunications discounts for schools, libraries, and rural health-care centers. Under the merger, the Schools and Libraries Corporation and the Rural Health Care Corporation would be folded into the Universal Service Administration Company, which oversees a program to make phone service affordable for low-income people. The FCC also said there was only $1.67 billion available for the program this year; estimated demand is $2 billion. FCC Chair William Kennard has said that if funding runs short, he favors giving money first to schools in poorer communities. The General Accounting Office released a report February 11 stating the FCC had exceeded its authority by creating the two agencies, and congressional critics have charged that the two agencies create unnecessary bureaucracy and have attacked the high salaries paid to SLC executives. Posted May 18, 1998. |
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