April 22, 2004

The Honorable Daniel K. Akaka
United States Senate
141 Hart Senate Office Building
Washington, DC 20510

Dear Senator Akaka:

I am writing to you on behalf of the League of United Latin American Citizens (LULAC), the oldest and largest Hispanic civil rights organization in the United States. LULAC advances the economic condition, educational attainment, political influence, health, and civil rights of Hispanic Americans through community-based programs operating at more than 600 LULAC councils nationwide.

The Federal Communications Commission (FCC) is considering a proposal to change the way it collects the Universal Service Fund (USF) from a "usage" contribution to a "subscriber" flat fee. I oppose this proposed change and respectfully urge you to carefully consider the impact this would have on Latino consumers. The proposed change is especially unfair for low-volume users that rely on wireless service, and who make few, if any, long distance calls. The proposed change would mean that a wireless consumer using 10 minutes of long distance service would pay the same flat USF fee as a consumer that uses 1000 minutes of long distance service. Many Latinos rely heavily on pre-paid cell phones as their preferred choice or their only option for wireless service, including:

• Latino families who have children and teenagers
• Latino elderly who may live alone or travel
• Latino seasonal workers or students in the U.S.
• Latinos who want cell phones for emergency or security purposes
• Latinos who are on public assistance or fixed incomes
• Latinos who cannot meet credit or security deposit requirements

LULAC supports the current USF usage contribution system. It is fair, equitable, and nondiscriminatory. LULAC has long been a staunch advocate for USF and appreciates how it ensures the delivery of affordable telecommunications to all Americans. Many Hispanics benefit from participating in USF's Lifeline and Link-up programs in rural areas, and many schools and libraries serving predominantly Hispanic students have obtained Internet access through the E-rate program. Preserving and sustaining universal service is a fundamental commitment of LULAC. As a civil rights organization, we place a high premium on the principles of fairness, equity and non-discrimination.

I respectfully urge you to reject the "subscriber" flat-fee proposal, protect customers from an unfair fee structure and ask the FCC to do the same. Congress can not let the FCC jeopardize the affordability and accessibility of voice services, including pre-paid wireless cell phones. Consumers use their phone service in a variety of ways as evidenced by the number of custom phone service plans available. Why, then, should there be a "one-size-fits-all" charge for phone service?

On behalf of LULAC members, I thank you for your leadership and look forward to working with you in support of policies that keep the current USF system fair for all.

Sincerely,

Hector M. Flores
National President, League of United Latin American Citizens