The government also should be provided clarity on the rules, Tauke said at a press briefing. Hopefully, Congress will address the issue responsibly, he added.

The Washington Post reported Friday that the Bush administration wants legislation to stop dozens of lawsuits that charge telephone companies like Verizon with violating people's privacy through the government's anti-terrorism surveillance.

On another front, Tauke said he does not think telecommunications policy is a big concern for U.S. consumers right now, so there is no urgent cry for federal telecom legislation. However, he said Congress could pay attention to the issue of high-speed Internet deployment in less attractive areas, to the universal service fund, and to fostering electronic health records.

USF, which subsidizes telecom and Internet connections in rural and underprivileged areas, is not functioning effectively, Tauke said, and a reverse auction process would work well. He said a proposal from House Energy and Commerce Committee members Rick Boucher, D-Va., and Lee Terry, R-Neb., would not go far enough in overhauling USF.

The subsidy currently is not in sync with the market, Tauke said. He advocated a reverse auction process under which the telecom carrier agreeing to receive the lowest subsidy wins.

Tauke also said he believes the Connect Kentucky project -- an alliance of businesses, government entities and universities working to accelerate technology in Kentucky -- is a model that could be used elsewhere.

Another issue Verizon has been following is the planned FCC auction of the 700-megahertz band of spectrum that is being returned by television broadcasters. The auction is supposed to occur no later than Jan. 28.

Tauke said the auction will give Verizon the ability to deploy advanced wireless technology across the country. It is very important that the FCC does not impose unnecessary rules on the auction or dictate business models, he said.

The auction process should ensure that the government receives the maximum revenue, Tauke added. He also said it would be better if the FCC held the auction before January because it will be more difficult for the agency to get the money to the Treasury Department under the given timeframe otherwise.

Companies want to know what the auction rules are as soon as possible, Tauke noted.

In discussing broadband, he said cable and telecom companies are deploying service at record speeds, with the numbers for broadband penetration rapidly increasing this year. Some U.S. locales still do not have connections, and that needs to be addressed, he said.