Addressing “traffic pumping” and “phantom traffic” is an “essential part of inter-carrier compensation reform,” representatives of USTelecom and some of its member companies said in a meeting Wednesday with FCC Wireline Bureau staff (http://xrl.us/bmaj6g).

Lawyers and an economist for Comcast seek access to all documents a group of six large phone companies filed with the FCC on changing the Universal Service Fund to pay for broadband. The documents include those from AT&T, Frontier, CenturyLink, FairPoint, Verizon and/or Windstream, the Lawler Metzger law firm said in a Wednesday filing in docket 10-90 (http://xrl.us/bmaimb). Michael Pelcovits of Microeconomic Consulting also signed a confidentiality acknowledgment. Cable operators haven’t yet backed the plan from the six major phone carriers that was brokered by USTelecom (CD Aug 1 p1).

USTelecom and Sprint Nextel separately asked the FCC Wireline Bureau to clarify that carriers shouldn’t have to reimburse the Universal Service Administrative Co. when Rural Health Care (RHC) applicants don’t comply with USAC audit procedures. AT&T asked the commission to reverse a decision by USAC that the service provider must foot the bill when one of its customers violates a USAC rule. The amount of money in question in the case appealed by AT&T is small: $1,860. The industry commenters said the issue presented is much larger.

Recovery funding for price cap carriers necessary as a result of the plan filed by a USTelecom-organized group of carriers (CD Aug 1 p1) “will be relatively small and will fit easily within the overall budget set out in the Consensus Framework.” That’s what leading members of the group told Wireline Bureau Chief Sharon Gillett and other FCC officials. The group “committed to file information showing year-by-year modeling of the transition from current USF to a reformed system focused on supporting broadband,” it said in a filing (http://xrl.us/bk97hv). “That modeling will include both the ... plan and Joint Rural Association filing as modified by the Consensus Framework.” The group “also discussed the likelihood that there are a significant number of locations without broadband service that are in areas that are not modeled as high-cost, and what solution the” plan would provide for such locations,” it said. The “plan is focused on supporting the delivery of broadband in high-cost areas and does not directly address unserved locations in areas that are not high-cost,” the filing said. The “plan would account for new service locations in areas that receive broadband support,” it said “Under the plan, new service locations within supported areas would be included in the support recipient’s broadband network obligations or through operation of the alternate technology provisions of the plan."

Verizon and Google disagreed sharply on whether the FCC should give tw telecom the declaratory ruling it asked for. Tw seeks a ruling that VoIP is a telecom service under Title II, giving the company the right “to establish direct IP-to-IP interconnections.” Google, as well as NCTA and a number of cable operators, supported the company’s arguments. Verizon and USTelecom said any such ruling would be premature.

NTCA hasn’t backed away from its joint universal service reform plan that it forged with other rural associations earlier this year, but its decision to file a complementary letter to the USTelecom-brokered agreement “was premised upon a delicate balance of interests and difficult trade-offs,” the group said in a meeting with Margaret McCarthy, aide to Commissioner Michael Copps. That said, “any material changes to the modified RLEC Plan, any attempts to blend or import any concepts from the separate and distinct ‘America’s Broadband Connectivity’ proposal into the RLEC Plan, or the conversion of any budget targets for small rural carriers into caps imposed by rule would harm small rural providers who had already taken significant steps to enable the consensus framework and likely lead to the collapse of this carefully balanced compromise,” NTCA told McCarthy, according to an ex parte notice filed on docket 10-90.

Aug. 15 NATOA webinar on building fiber to the home, 2 p.m. -- http://xrl.us/bkz58c

Supporters of the Universal Service Fund overhaul agreement brokered by USTelecom asked the chairmen and ranking members of the House and Senate Commerce committees and their communications subcommittees for support. A Thursday letter was from USTelecom, AT&T, Verizon, CenturyLink, FairPoint, Frontier, Windstream, OPASTCO, the NTCA and the Western Telecommunications Alliance. “This universal service fund (USF) and intercarrier compensation reform framework represents the country’s best chance to stabilize, modernize, and expand rural networks for years to come,” the coalition said. “With our carefully balanced compromise, we believe the industry can work through a major transition process without damaging vital communication infrastructure or disrupting customer services.” The FCC has said it hopes to complete reform this fall, the coalition noted. “After years of frustration and dead-ends, we are on the precipice of reform and now have a rare opportunity to push for significant change in these vital programs. Please join us by encouraging the FCC to make this reform a reality.” In a letter to FCC Chairman Julius Genachowski, Arkansas Gov. Mike Beebe urged the FCC “to take advantage of this historic opportunity” presented by the broad industry agreement on universal service and intercarrier comp revisions. “We may never see a better chance than this, and it’s time to end the waiting for those without broadband,” Beebe, a Democrat, wrote in a letter dated and released Thursday.

Leaders of the three mid-size telcos that signed the USTelecom-brokered universal service and intercarrier compensation reform proposal urged FCC Chairman Julius Genachowski Wednesday to implement the proposed reforms “in the near-term” and “simultaneous adoption” of the plan. CenturyLink CEO Glen Post; Frontier Chairman Maggie Wilderotter and Windstream CEO Jeff Gardner told Genachowski in a letter that they “believe that the time to act on comprehensive reform of both universal service and intercarrier compensation is now.” The telco plan (CD Aug 1 p1) “required compromise, perseverance, and a leap of faith by all involved,” the executives said. “That is why we urge you to move forward expeditiously to adopt America’s Broadband Connectivity Plan in full."

Free Press criticized FCC Chairman Julius Genachowski’s endorsement of usage-based pricing. “While the rest of the world is moving away from this type of price-gouging, it is puzzling why the FCC chairman would endorse a practice that in the long run will relegate the United States to an Internet backwater,” Research Director Derek Turner said Wednesday. Genachowski said the day before that usage caps such as those used by AT&T and Verizon “fundamentally” may “provide consumers more choice.” The FCC’s December net neutrality order contemplated usage-based pricing, but left it to “markets” to decide how to handle it. Turner said such pricing plans could help low-volume users “in theory. But the industry is not contemplating any such thing, because it runs counter to the fundamental network economics of their industry, and because doing so would not help them achieve their primary goal -- continued explosive growth of profits. They're simply not looking to charge low-volume users less -- over time, they want everyone to pay more.” USTelecom spokeswoman Anne Veigle said data usage has exploded, and usage-based pricing helps makes sure that those who benefit most, pay the most. “To keep up with this demand, the broadband industry invested an average of $66 billion per year from 2005-2010, with wireline companies contributing the lion’s share, $30 billion per year, compared to wireless at $23 billion and cable at $13 billion,” Veigle said. “Who should bear the cost of this investment? Given that the top 10 percent account for 60 percent of traffic, fundamental fairness dictates that those whose demands are less should not be required to subsidize those who are consuming the greater capacity, imposing the greater costs, and deriving the greater benefit."