News from the Oklahoma Corporation Commission

Jim Palmer, Director of Information

Phone: (405) 522-2100, FAX: (405) 522-1623, www.occeweb.com

August 31, 2000

COMMISSION ACTS TO PROTECT RATEPAYERS WHILE EXPANDING PHONE SERVICE

(OKLAHOMA CITY) – State Corporation Commissioners are working to make sure a new federal mandate lets low-income Oklahomans living on or near tribal lands receive phone service without increasing Oklahoma Universal Service Fund charges.

The Federal Communications Commission order expands existing programs by allowing qualified persons to receive basic local phone service for as little as one dollar per month by employing discounts of up to $25 for monthly service and $70 for new installations.

Maintaining the concept of maximum ratepayer protection and maximum benefits, the Commission has instructed that an order be prepared which complies with the new FCC-ordered program by allowing local phone carriers in Oklahoma to file their required tariffs.

The Federal mandate requires local phone companies to expand existing programs aimed at helping the low-income get phone service. It allows carriers to recover their costs through the Federal Universal Service Fund.

The Oklahoma Corporation Commission order includes language to insure the Oklahoma Universal Service Fund will not be used to pay for the federal program.

Commission Chairman Bob Anthony applauded the intent of the federal program to make affordable telephone service universally available. "But, we have a responsibility to protect Oklahoma telephone customers," he added. "Today’s order authorizes Oklahoma telephone companies to fully participate in the program mandated by the federal Communications Commission. At the same time, it insures that all funding will come through the federal program and that state fees will not increase as a result."

Sounding a note of warning, Vice-Chairman Denise Bode pointed out many questions remain. "Since the federal government has failed to provide a clear answer as to how many people will be covered, it is not yet known how much the FCC’s mandate may increase federal tariff charges on Oklahoma phone bills."

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