FCC Takes Industry Temperature on USF Formula
The FCC is putting out feelers to industry leaders and interest groups on the Universal Service Fund contributions formula, industry lobbyists said and records show. The commission said in April it was overhauling broadband regulations and overhauling the service fund and has said it plans a rulemaking notice in the fourth quarter. In recent days, lobbyists and industry leaders have been at the FCC for various ex parte meetings.
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At least eight different meetings have taken place since Wednesday, records show. “It seems like the staff is ramping up,” said Jennifer McKee, a lawyer with the NCTA, whose colleagues met with commission officials Aug. 19. Representatives of the National Exchange Carrier Association, Free Press, Media Access Project, Sprint Nextel, National Telecommunications Cooperative Association, Nebraska Public Service Commission and SouthernLINC Wireless have held meetings at the FCC, records show.
Some industry officials have called for the formula to be changed, either to a flat fee for every telephone number issued or to a fee for every connection made. The FCC is also considering expanding the pool of funders to include broadband companies. “I gather they're really looking at the big picture and what all the questions are that they're going to have to answer going forward,” said David Cosson, a solo practitioner lawyer representing the National Telecommunications Cooperative Association.
Industry speculation is that the commission will expand the fund to include broadband providers, but will probably leave the revenues-based formula in place, two industry analysts said. Todd Daubert, a lawyer at Sonnenschein Nath who is representing SouthernLINC, said he’s impressed by the wide-open posture of regulators. “I think they have an open mind,” he said.