The FCC must not remove state jurisdiction over intrastate communications and preserve the joint governmental structure in its Universal Service Fund and Intercarrier Compensation proceeding, state officials said during a seminar held by the National Regulatory Research Institute Wednesday. Other top concerns for state regulators include cost and contribution methods, they said.
The record developed by the FCC makes clear that SMS is an information service and carriers should not have to pay into the Universal Service Fund based on SMS revenue, CTIA said in reply comments. The Wireline Bureau asked for comments on the topic, in response to an April 26 letter from the Universal Service Administrative Co. seeking guidance on the reporting of text messaging revenues for purposes of the USF.
Industry remains divided on how best to fix the Universal Service Fund and intercarrier compensation regimes, with a few months left before an FCC-promised deadline. Despite broad agreement that USF and intercarrier comp need fixing, reply comments show deep divisions over such questions as how quickly to transform to an all-IP network, how to treat VoIP service and the role of satellite and wireless technologies. “There is no doubt that the current universal service fund … and intercarrier compensation regimes are not sustainable in light of market and technological changes,” the Independent Telephone & Telecommunications Alliance said. “The comments show that there is no industry consensus in favor of the reforms outlined in the Notice or any other plan to promote broadband deployment to unserved areas.” The replies were posted in docket 10-90.
OMAHA, Neb. -- The FCC shouldn’t fall for the “misperception” that satellite can’t provide effective voice and broadband service, WildBlue Vice President Lisa Scalpone said late Wednesday at a commission workshop on changing the Universal Service Fund to pay for Internet service. “We don’t want to be foreclosed,” she told federal and state regulators, including FCC members Michael Copps and Mignon Clyburn. ViaSat, WildBlue’s parent, is scheduled to launch ViaSat-1 in July. Scalpone said that once that satellite is operational, WildBlue will go from download speeds of 2 Mbps to 12 Mbps. “At least let satellite perform in pilot programs,” she said. “We'll have the programs up and running."
OMAHA, Neb. -- Industry and public interest advocates have yet to devise a comprehensive proposal addressing all the problems of the Universal Service Fund and intercarrier compensation regime, FCC Chairman Julius Genachowski said at a commission roundtable. “We want to see more from stakeholders in this program, and we want to see it quickly.” The chairman led a public forum on the pending overhaul late Wednesday at the University of Nebraska at Omaha to close a day-long set of discussions. He reiterated the four corners of his reform program: Moving to a broadband fund and phasing down intercarrier comp rates, (including intrastate revenues); “controlling costs and constraining the size of the fund;” “demanding accountability;” and “market-driven and incentive-based policies to maximize the impact of scarce program resources.”
OMAHA -- The FCC should take an active role in creating and enforcing broadband guidelines in its Universal Service Fund reform, T-Mobile Corporate Counsel Teri Ohta said at an FCC workshop Wednesday. “We do feel that the federal government ultimately has the responsibility to make sure those funds are distributed properly.” T-Mobile is worried that giving states authority over broadband regulations will lead to a confusing patchwork of regulations that will make it difficult to deploy broadband, Ohta said.
One part of the effort to revamp the USF and intercarrier compensation system will examine and learn from the actions that states have taken to reduce intrastate access rates, said Wireline Bureau Chief Sharon Gillett on the FCC’s blog. By taking actions to revamp the rates, emphasizes further the FCC’s goal of modernizing the intercarrier compensation system for broadband, reducing incentives for regulatory “gamesmanship” and paving the way to lower long distance and wireless rates for consumers, she said. Gillett noted that Tennessee recently passed a law (CD Mar 21 p7) that will gradually reduce intrastate rates to interstate levels, and Washington state recently required CenturyLink to reduce its intrastate access rates to Qwest’s levels as a condition of the companies’ merger approval. Tennessee and Washington joined more than a dozen states, including Georgia, Iowa, Kansas, Michigan, Nebraska and Texas, that are “leaders on ICC reform,” she said. She urged other states to take similar action, saying revamping USF and ICC requires cooperation between the FCC and the states.
The FCC’s proposal to revamp the Universal Service Fund and intercarrier compensation apparently could benefit some states while hurting others, according to comments in the proceeding. But states in general supported retaining and enhancing a state role in any rewrite. The FCC is expected to complete some of the USF overhaul by late summer (see separate report in this issue).
The House Commerce Committee took its first steps at naming GOP members beyond the chairman. The office of incoming Chairman Fred Upton, R-Mich., released a list Friday of 13 others from his party who will be new members of the full committee. Many are new faces to telecom, industry officials and lobbyists said. They said that poses challenges to the communications and high-tech industries, which will have to quickly get members up to speed, and also an opportunity to lobby them.
Rep. Rick Boucher, D-Va., “will remain active” after he departs the Congress at the end of the year, he said in an interview last week. “I'm 64 but I feel pretty young … and I think I'm good for another 20 years doing something.” The outgoing House Communications Subcommittee chairman hopes Congress next year will finish bipartisan work he started on privacy, incentive auctions and a revamped Universal Service Fund.