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.
The FCC’s order Friday that requires nomadic VoIP providers to pay into state Universal Service Funds and federal USF could lead to more regulatory activities in some states, officials said in interviews. The order (CD Nov 8 p2) had been expected since September, when Kansas and Nebraska amended their petition to the FCC by deleting language that would have allowed states to assess fees retroactively.
Nomadic VoIP providers will have to pay into state Universal Service funds as well as the federal USF, the FCC ruled Friday. In a 5-0 declaratory ruling published late Friday, the commission ruled in favor of a request by the Kansas and Nebraska utilities commissions. That would let states assess USF fees on nomadic VoIP.
Lack of clarity on VoIP at the federal level opens the door to additional state activity, state officials told us. Regulators in states like Wisconsin are looking at VoIP issues, including authority over the technology. The Wisconsin Public Service Commission had a prehearing Tuesday and will look into the appropriate level of regulation on VoIP. A decision is expected in July.
The VON Coalition tried to hold off an impending order giving states the right to assess Universal Service Fund levies on nomadic VoIP providers, said an ex parte notice filed by the group late Tuesday. Executive Director Glenn Richards said he met with Commissioner Meredith Baker’s new wireline adviser, Brad Gillen, and Chairman Julius Genachowski’s wireline adviser Zac Katz and argued that the FCC’s 2004 Vonage preemption order ought to keep states from levying their own USF fees on nomadic carriers. Last month, at eighth-floor urging, Kansas and Nebraska amended their request for a declaratory ruling on nomadic VoIP by deleting requests to make any USF assessments retroactive. This clears the way for a declaratory order, which FCC and industry officials had expected to already have been issued. State officials indicated they may still seek retroactive payments (CD Sept 21 p6). This has the VON Coalition worried. “The commission must make clear that it is changing (and not simply clarifying) the law, or there … may be unnecessary litigation,” Richards said.
Regulators in Kansas and Nebraska amended a request to make retroactive their powers to assess nomadic voice over Internet providers for state universal service funds. This all but clears the way for a declaratory FCC ruling that states can make their own USF assessments, and an order could be coming within weeks, agency officials said.
There’s no reason for the FCC to delay approval and release of an order that would allow states to require providers of nomadic VoIP service to contribute to state universal service funds, NARUC said in an FCC filing. Some providers seek a rulemaking to further delay their “obligations” to pay -- as their competitors pay -- to support state programs, NARUC said. They have raised as an issue -- “the unlikely scenario that one or more consumers -- in theory -- might actually pay into two state programs,” it noted. Currently, at least one state requires the in-state USF revenue identification to be based on billing addresses and at least one other State requires revenue identification to be based on primary service address. However, this “unlikely scenario” provides no basis for delay or a drawn out rulemaking, NARUC said, saying there’s no evidence in the record that this circumstance has actually occurred or “even likely to occur.” The group cited Sandy Reams, managing auditor for the Kansas Corporation Commission, saying Kansas is the only state currently assessing nomadic interconnected VoIP providers for state USF purposes. So no conflict between the revenue-identification methods currently exists. Reams also noted once the FCC issues an order and Nebraska and New Mexico implement the assessment on providers of nomadic interconnected VoIP service, it will be rare for a carrier to be assessed on the same revenue by two different states. The nomadic carriers have raised “an unsupported allegation as a fact” -- that a significant quantum of customers may be subject to overlapping state assessments -- as a defense to complying with what the FCC has found to be clear Congressional intent that Vonage contribute to state programs, NARUC said. Vonage (or other nomadic carriers) are the only parties to this proceeding in a position to demonstrate if the claim is true, it said. Vonage has provided no evidence a single customer in any state is in a position to be actually harmed based on the methods suggested by the Nebraska and Kansas commissions (or any other actual State commission rule or proposed rule), NARUC said. Additionally, if it actually does happen, the states will assure the affected customer “is made whole.” Two of the states involved have already specified, in the unlikely case that such a circumstance rises, they will work together to assure the consumer is not harmed. “In the unlikely event that a double assessment actually does occur,” the states can provide a credit to a carrier that is assessed twice on the same revenue,” it said. Meanwhile, states have successfully worked together on the issue for wireless providers, and that’s strong evidence that to the extent that any double billing issue arises, it will be readily resolved by the states’ collaboration, NARUC said.
There’s no reason for the FCC to delay approval and release of an order that would allow states to require providers of nomadic VoIP service to contribute to state universal service funds, NARUC said in an FCC filing. Some providers seek a rulemaking to further delay their “obligations” to pay -- as their competitors pay -- to support state programs, NARUC said. They have raised as an issue -- “the unlikely scenario that one or more consumers -- in theory -- might actually pay into two state programs,” it noted. Currently, at least one state requires the in-state USF revenue identification to be based on billing addresses and at least one other State requires revenue identification to be based on primary service address. However, this “unlikely scenario” provides no basis for delay or a drawn out rulemaking, NARUC said, saying there’s no evidence in the record that this circumstance has actually occurred or “even likely to occur.” The group cited Sandy Reams, managing auditor for the Kansas Corporation Commission, saying Kansas is the only state currently assessing nomadic interconnected VoIP providers for state USF purposes. So no conflict between the revenue-identification methods currently exists. Reams also noted once the FCC issues an order and Nebraska and New Mexico implement the assessment on providers of nomadic interconnected VoIP service, it will be rare for a carrier to be assessed on the same revenue by two different states. The nomadic carriers have raised “an unsupported allegation as a fact” -- that a significant quantum of customers may be subject to overlapping state assessments -- as a defense to complying with what the FCC has found to be clear Congressional intent that Vonage contribute to state programs, NARUC said. Vonage (or other nomadic carriers) are the only parties to this proceeding in a position to demonstrate if the claim is true, it said. Vonage has provided no evidence a single customer in any state is in a position to be actually harmed based on the methods suggested by the Nebraska and Kansas commissions (or any other actual State commission rule or proposed rule), NARUC said. Additionally, if it actually does happen, the states will assure the affected customer “is made whole.” Two of the states involved have already specified, in the unlikely case that such a circumstance rises, they will work together to assure the consumer is not harmed. “In the unlikely event that a double assessment actually does occur,” the states can provide a credit to a carrier that is assessed twice on the same revenue,” it said. Meanwhile, states have successfully worked together on the issue for wireless providers, and that’s strong evidence that to the extent that any double billing issue arises, it will be readily resolved by the states’ collaboration, NARUC said.
State regulators from Nebraska and Kansas are defending their requests for a declaratory ruling that would allow states to require nomadic VoIP providers to contribute to state universal service funds. In a Wednesday filing, private firm lawyers representing the Nebraska Public Service Commission and the Kansas Corporation Commission said: “Consumers, competitors and universal service are all best served by a wide USF assessment base that does not contain a loophole favoring one particular class of competitors.” Some ex parte filings said opponents are urging the FCC to take a slower rulemaking process on the question, but Nebraska and Kansas regulators said they're worried about nomadic VoIP providers expanding, thus depriving the states of more funds.
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.