FCC’s Diplomacy with States Paying Dividends in USF Reform
The FCC’s quiet but determined diplomacy with state regulators has helped ease Chairman Julius Genachowski’s path through key elements of the National Broadband Plan, state and federal officials told us. In early May, for instance, the Joint Board on Universal Service filed comments on Genachowski’s proposed Universal Service Fund and intercarrier compensation system revisions. Whatever the Joint Board’s other recommendations, it did not insist that the matter should have been referred back to the Joint Board. FCC officials took that as an implicit endorsements of their efforts, which in turn undermined criticisms from rural carriers that the FCC didn’t have jurisdiction (CD May 4 p2). “There really has been a lot of outreach from this FCC,” Vermont Public Service Board Member John Burke told us at the time. “I think it’s fair to say that the FCC here was pretty much unprecedented on how they reached out to members.”
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
In an interview in Omaha, Genachowski said he hadn’t directed his team to cultivate state board members. He and his staff simply understood that they needed the states’ help, the chairman said. “Outreach is very important,” he said. “Some of the best ideas for reform come from the states.” States were also instrumental in helping the FCC pass its pole attachment order in April, Genachowski said.
James Cawley, chairman of the Federal-State Joint Board and chairman of the Pennsylvania Public Utility Commission, said he’s “extremely pleased” with Genachowski’s “collaborative and cordial treatment” of the state members of the Joint Board. Democratic FCC Commissioner Mignon Clyburn, chair of the board, has been in constant touch with him and his colleagues, Cawley said. Clyburn has personally called to ensure that the FCC’s Lifeline/Link-Up referral under the National Broadband Plan went smoothly, he said. More recently, Clyburn has been actively involved in the Joint Board’s universal service reform efforts, he noted.
Clyburn, herself a former South Carolina regulator, told us she thought it was “critical that the FCC collaborate with the states on telecommunications and broadband policy.” Under Genachowski, the FCC has “revitalized and strengthened the relationship with the states,” Clyburn said. “I am proud that we have made great strides in strengthening our relationships with the states; that this agency is actively seeking input from the states; and that we are seeking to further collaborate with them,” she said.
Similarly, Genachowski has called and invited the state members to a box lunch at the FCC to assure the members that the FCC counted on the states’ advice in the universal service and intercarrier comp overhauls, Cawley said. “We were made a part of the deliberative process,” he said. Genachowski also directed key staff to keep state members apprised of the progress of the reform proposals, including personal briefings by Wireline Bureau Chief Sharon Gillette on the eve of its release, he said. He also noted day-long public workshops on USF/ICC issues. Finally, in addition to the Lifeline/Link-Up referral, the chairman and his colleagues gave the Joint Board elevated party status by allotting additional time for the Board to respond to the initial comments filed in the USF/ICC NPRM, he said.
Outreach efforts, especially on the USF NPRM, have been “substantial,” Vermont’s Burke told us in an interview last week. The state members don’t always agree with the FCC but what matters is there’s a forum for discussion, he said. “The goal is the same but the path is different. … The more you talk with each other, the more you are listening to the other side.”
States are more willing to rely on Genachowski’s FCC than they were in the past, said Larry Landis, commissioner with the Indiana Utility Regulatory Commission. Both former Chairman Kevin Martin and Genachowski made “genuine efforts” to reach out to states, said Landis, who was briefly on the Joint Board during the last administrations. But “I would give more credit to Chairman Genachowski,” particularly for the significant outreach effort to the state members of the Federal-State USF Joint Board, he said. Still, the state members are disappointed that they didn’t get USF/ICC referral. Additionally, he said Clyburn has been “forthcoming” regarding maintaining the dialogue with state members, Landis said. He also praised Wireline Bureau Chief Sharon Gillett, a former Massachusetts regulator. Overall, the state members have had a good relationship with the FCC, he said.
The current administration has shown more drive to tackle big issues like USF/ICC and has many important proceedings under way, said Wayne Jortner, senior counsel with Maine’s Public Advocate Office, also member of the Joint Board. Under the previous two FCC administrations, big issues like USF and ICC have been allowed to linger far too long, he said. The FCC has, historically, been hesitant to act without broad support from those they regulate, he said. This administration is more respectful of the state role and has a good working relationship with the Joint Board, he said. Still, a better state role in regulating intrastate communications is needed, he noted. Other items for improvement include a ruling on classification of interconnected VoIP and a faster and more consumer-focused process to tackle broadband inequality, he said. The state’s advocate office filed comments concerning the need to provide better incentives for broadband deployment in rural areas, he said.