Date: 1983-06-13
Speaker: MARK FOWLER (democrat)
Chamber: S

Chairman. Federal Communications Commission. Washington. D.C. DEAR MR. CHAIRMAN: It IS My understanding that the FCC is proceeding with its task of determining access charges for telephone subscribers. I would like to express my interest and concerns about this issue. Rural areas in the United States are highly vulnerable to significant rate increases if their unique circumstances are not recognized. or even worse. Ignored. Because of low population density. persubscriber fixed costs are considerably higher than what urban areas experience. The United States has become the integrated and efficient economy that it is due in part to the commitment to providing universal telephone service at reasonable rates. The worldwide telephone communications network is made stronger by ensuring service to outlying areas. All telephone users have some obligation to keep the network as comprehensive as possible so that communication can take place between all points in the United States. It is in the national interest to maintain the universal service concept and to assure that all Americans have an opportunity to use telephone services at reasonable rates. Without some level of rate support. rural users will be exposed to tremendous rate increases. Under the "Pure II" approach for defining access changes. subscribers of nonBell services in South Dakota would be reQuired to pay an additional $38.50 for basic monthly service. Over the entire state. all customers would be subject to an increase of about $15.00. Clearly. these large increases in rates will invoke hardship on the people of South Dakota and other rural states. While I recognize that changes in the telecommunications market structure require changes in the allocations of costs. I do not believe that the cost of basic phone service should vary dramatically from one area of the country to another. To facilitate a comprehensive telephone network. it seems to me that a nationwide average cost allocation is a fair way to deal with the access charge problem. I have information that shows subscriber plant factor interstate allocation on a per subscriber basis varies from $3 to $26 per month. with $7 being the approximate average. About 21 states are above that average. 13 states exceed the average by 40% or more. If monthly costs for basic service must rise in the absence or reduction of subsidies from long distance revenue. it seems to me that the imposition of an average rate increase on all users would be equitable for all. Todays rural citizen is probably more reliant on telephone service than his urban counterpart because of the great distances that separate the towns. Farmqrs and ranchers must be in constant contact with their local elevators and agriculture suppliers as well as their outofstate commodities brokers. Businessmen. too. must remain in contact with customers and outofstate suppliers and manufacturers. The rural economy is very dependent on the phone system. Home and personal use of the telephone must be taken into consideration. also. Increases in phone costs to the user translate directly to decreases in the standard of living of South Dakotans. If subscribers keep the service and are required to pay as much as $400 more annually for phone service. they will have to forego the purchase of other goods and services. The only other alternative available to them is to forfeit the use of telephone service. That kind of dislocation would be tragic. Phone usage in rural areas is a necessity. Besides the social and economic reasons for having telephone service. phone availability can assist in lifesaving efforts. Weather conditions and job hazards are often life threatening in remote arers and communication is vitaily important in reducing risks associated with rural living. I urge you and your fellow commissioners to give full consideration to the needs of rural citizens. The principle of universal service at reasonable rates should not be abandoned now. The benefits from this admirable goal have been bestowed on all Americans. Let us take steps to assure the continuance of affordable basic service by compromising an acceptable mix ot econom1c and social objectives. With best wishes. Sincerely.