The Order defined the parameters of the fund, set up a process for incorporating input from state public service commissions, and set guidelines for the delivery of Internet access and wiring to the nation's schools, libraries and rural health-care providers. The petitioners asked the Court to declare unlawful the FCC's decision not to implement universal service reform prior to 1999 and the FCC's allowance of competition to eliminate funding that comes from implicit subsidies before the establishment of an explicit support mechanism. As of today, BellSouth has withdrawn its appeal of the FCC Order because it believes that most major issues of the Order will be resolved through the regulatory process in place today. The company also believes that, based on extensive research and audit analysis on the education sector business opportunities, and our long tradition of supporting education, it is in the best interest of BellSouth and its customers in the education sector, to withdraw this appeal. While we feel that the reasons we filed our appeal were sound, we believe that the landscape has changed since then.
Universal service represents a changing tableau.
The FCC recently adopted a cost model which is a first step in circumscribing the new universal service fund. The Joint-Board acted yesterday to respond to the most recent issues that the Commission referred to their consideration. The results of this recommendation will be another important piece to the universal service puzzle. At the same time, the FCC has taken steps to bring greater administrative efficiency to the schools and library fund and prioritize the fund's purposes. Because of these recent events, BellSouth has decided not to proceed with the appeal of the original universal service order.