[1]See Public Notice, "Common Carrier Bureau Seeks Further Comment on Specific Questions in Universal Service Notice of Proposed Rulemaking," DA 96-1078 (released July 3, 1996).

[2]See Comments of Vanguard Cellular Systems, Inc., Federal-State Joint Board on Universal Service, CC Docket No. 96-45 (filed April 12, 1996); Reply Comments of Vanguard Cellular Systems, Inc., Federal-State Joint Board on Universal Service, CC Docket No. 96-45 (filed May 8, 1996).

[3]See, e.g., Statement of Commissioner James H. Quello, CC Dkt. No. 96-98, rel. Aug. 1, 1996 ("As competition proliferates and prices fall, economic growth will also occur, and that too will benefit all of us.").

[4]See, e.g., Telephone Subscribership in the United States, Alexander Belinfante, Industry Analysis Division, Common Carrier Bureau, Federal Communications Commission (released June 1996) (estimating that 93.8% of all households in the United States have telephone service).

[5]See Notice of Proposed Rulemaking and Order Establishing Joint Board, In the Matter of Federal-State Joint Board on Universal Service, CC Docket No. 96-45 at [[paragraph]]16 (adopted and released March 8, 1996) ("Notice").

[6]See Notice at [[paragraph]]86.

[7]This is not an abstract issue. For instance, Vanguard has experienced abuses when it has made services available at discounted rates to public safety and health organizations. In those cases, friends and relatives of eligible individuals used services intended for public safety and health purposes, to the detriment of both Vanguard and the entities that were supposed to benefit from the discounts.

[8]Similarly, the Commission should not base universal support eligibility on the outcome of an auction process. Designating a carrier to provide service pursuant to a bidding process: (1) reduces consumer choice by limiting the number of available carriers that can provide comparable service within a given region; and (2) provides little incentive for the designated carrier to lower its costs on an ongoing basis. Making universal service subsidies available to all eligible services providers, in contrast, spurs competition and permits customers to choose a telecommunication carrier that best suits their individual needs.