Caledonia Argus

Posted: 7/12/05

Phone companies lobbying for adequate funding

Gutknecht hears concerns in Spring Grove

By David Heiller
Argus News Editor

What does the federal Telecommunications Act that will be rewritten in Washington this fall have to do with Spring Grove Minnesota?

A lot, according to First District U.S. Congressman Gil Gutknecht and many state and local telecommunication workers.

They held a meeting at Spring Grove Communications on July 7 to talk about the bill and to spread the word to the newspaper, radio, and television reporters who attended.

The Universal Service Fund (USF) is the biggest sticking point in the negotiations on the new Telecommunications Act, Gut-knecht said. The USF provides almost $80 million annually to keep rural telephone rates affordable.

Gutknecht called the USF ìabsolutely essential,î and felt it cannot be eliminated. But people using the system have to pay for it, he said, and determining that formula will take the ìwisdom of Solomon.î

Gutknecht thanked the nine representatives of small telecommunication companies who sat at tables in the basement of the building. ìYou are part of the solution,î he said.

Minnesota is ahead of much of the nation in the rural telecommunication, Gutknecht added. ìMinnesotans are really blessed to have access to incredible telecommunication services.î

Gutknecht said he couldnít promise that companies like Spring Grove Communications would get everything they wanted, but he felt rural America would not be ignored.

Three Congressional hearings have held on the issue, with 28 people from both big and small companies testifying, Gutknecht said. Those hearings got the attention of the Federal Communications Commission and the companies themselves, he said.

Several of the phone company representatives thanked Gutknecht for his work and leadership on this issue. He is co-chairman of the Congressional Rural Caucus Telecommunications Task Force.

Randall Young, president of the Minnesota Association for Rural Telecommunications, said the new Telecommunications Act should keep the USF.

It should not be limited to only one line as has been suggested, Young said. It would discriminate against small businesses, he said, and would make dial-up internet service very expensive. ìAll the lines should be compensated,î Young said.

His groups would also like to see school, library, and rural healthcare programs separated from USF funding.

More concerns

Otterness explained some of his concerns in a July 8 press release. Right now, there are some long distance and cellular companies that are not paying us for their use of our rural networks. Our local telephone companies have built this infrastructure, but aren't being compensated for its use. They are subsidizing big long distance companies and cellular companies and that's just not fair,î he wrote.

Minnesotaís rural independent telephone companies have invested more than $300 million in new technology since 2000, and today more than 90 percent of access lines served by these companies have broadband, high-speed internet available to them. Due to these efforts, Minnesota, which ranks 21st in population nationally, is 16th in broadband availability.

SG Communications gets a good plug

The Spring Grove Communications building received some rave reviews from Gil Gutknecht last week.

General manager Craig Otterness took the first district congressman on a tour of the building at 166 West Main Street. It underwent a $2.25 million remodeling project last year.

Several members of the media accompanied the men.

Gutknechtís first stop was the new media center in the basement. Librarian Millie Halverson talked about the improvements there. She also praised the fundraising efforts of local Boy Scout Kyle Moen, who led a $10,000 fundraising drive.

ìWell, thank you Kyle Moen,î Gutknecht said when he heard that news. ìWhat a great kid.î

Then they looked at the reception area, new offices and meeting rooms, and finally a fitness center.

ìThis literally is a lot nicer than the House gym,î Gutknecht said of the room filled with exercise machines.

Otterness said it has about 240 members, and is open 24-hours a day. Members access it with a card key.

The building has three different sized meeting rooms for community events. Part of the facility also houses a new business in Spring Grove involving archaeology, plus extra office space is also being leased to a local lawyer.

Otterness said the library space was provided for $100,000, which was far below the cost of a new facility. The library is being paid off at the rate of $10,000 per year.

Gutknecht complimented Otterness and Spring Grove Communications for having the mix of privately and cooperatively owned space, and for putting money back into the community.

ìThis is a benchmark,î he said.

Gutknecht added that he remembers using the pay phone on the street in front of the building when he sold office supplies, before the days of cell phones.

Otterness, who cracked several jokes while giving the tour, replied that they had another phone by the hotel, but it was run over by a horse and buggy.


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