A breakaway group of rural telcos organized a last-ditch effort to keep their trade associations from signing on to a USTelecom-brokered agreement on Universal Service Fund and intercarrier compensation regime reforms. “It is simply a bad deal for rural America!” said a draft letter circulated by the Rural Broadband Alliance’s Diane Smith and Stephen Kraskin.

The three largest rural telecom associations defended their decision to engage in the USTelecom-led talks on universal service and intercarrier compensation revisions, but told their members to brace themselves for “give-and-take” on rate-of-return cuts and “deeper” cuts in intercarrier compensation. “We understand that many of you may see it as hard to work with carriers and other companies who often look to undermine the support networks that are essential to operation in rural areas,” said NTCA CEO Shirley Bloomfield, OPASTCO President John Rose and Western Telecom Alliance Vice President Kelly Worthington in a mass email to their members.

Phone companies aren’t the only industry group divided by potential Universal Service Fund change proposals. With a group convened by USTelecom poised to give the FCC on Friday a plan to make USF pay for broadband (CD July 26 p1), large and small cable operators also have different views on that framework. Just as major phone companies like AT&T and Verizon are expected to back the plan, with some mid-size telcos also joining in, the biggest U.S. cable operators also may support many if not all parts of the plan. As with small telcos that are net recipients of USF money and intercarrier compensation funds, cable operators that get such money also may back few if any aspects of the framework. That’s according to interviews with cable executives Tuesday.

The FCC wouldn’t distribute Universal Service Fund cash for broadband in areas where any ISP already sells Internet service, under a USTelecom-brokered industry agreement that could be made public as early Friday (CD July 22 p3), industry and FCC officials told us. Talks are still going on, they said Monday. Under the agreement, which USTelecom has been calling a “framework,” VoIP wouldn’t be classified either as telecom or information service, and VoIP carriers would be required to pay interstate access rates for all non-local calls, the officials said. Comcast and other major cable operators continue to evaluate the USTelecom proposal, and it’s possible they'll join it, industry officials said.

A closely watched FCC filing on reforming the Universal Service Fund to pay for broadband, which is backed by Comcast and others selling landline phone connections, will be ready as soon as next week. Verizon’s top executive in Washington predicted at a Minority Media and Telecom Council conference Thursday that the filing will be made next week and may be joined by the cable operator. Talks among many USF stakeholders led by USTelecom have been ongoing for some time, with the expectation of finishing the work this month or early next. Regardless of how wide support is for the USTelecom plan, the agency needs to soon approve an order on USF, Commissioner Robert McDowell told the conference. The USTelecom-led “framework” reached its conclusion in late June and has won favor with mid-sized telcos Windstream, CenturyLink and Frontier (CD July 6 p6).

Sprint Nextel’s fight with AT&T and T-Mobile over the GSM carriers’ proposed combination led to increased spending on lobbying for all three carriers in Q2, according to quarterly lobbying reports released this week. The fight over the extent to which LightSquared’s planned terrestrial system will disrupt GPS signals also continued to be a boon to the lobbying industry. Google, Facebook and other Internet companies continued to expand their Washington presence, while major telecom associations maintained spending consistent with 2010 levels.

Four Missouri Republicans joined rural telcos’ campaign to ward off what they see as the worst of the pending Universal Service Fund and intercarrier compensation regime reforms. Reps. Blaine Luetkemeyer, Sam Graves, Jo Ann Emerson and Vicky Hartzler said a letter dated Tuesday and released the next day. “We believe that in order to achieve the goals of this [1996 Telecom] Act, changes to the USF and ICC system must be made carefully and in a way that would enable carriers serving rural areas to sustain and improve upon affordable broadband where it already exists, to encourage deployment to unserved customers and not to harm rural customers who already have broadband service,” the letter said.

NBCUniversal promotes Frances Berwick to president of Bravo and Style media … Brandon Heiner, ex-USTelecom, becomes CenturyLink director-federal legislative affairs … Vindco online video ad company hires Jes Santoro, ex-NBCUniversal, as senior vice president of sales … Lobbyist Registrations: Comcast, Cabralgroup and Gephardt Group, both effective April 1 … Google, Chesapeake Enterprises, effective April 29 … Netflix, Kountoupes Consulting, effective June 1, and Franklin Square Group, effective June 2 … PCIA, Patton Boggs, effective June 22.

Upcoming results from a broadband speed study should be viewed skeptically because the FCC has been captured by ISPs, said New America Foundation Director Sascha Meinrath. “Even though we have been a core partner on this project and were a part of the official meetings for months and months, recently, we have not been invited to any of the meetings (nor have we seen ex partes from those meetings),” he said in an email exchange. Earlier meetings where ISPs discussed SamKnows work with agency officials were reported in such filings, and Meinrath was talking about the results of the SamKnows study involving 13 Internet companies. Release of the speed study has been pushed back to August (CD July 19 p14).

Frequent updates at the FCC by News Corp. and the addition of internal watchdogs are good ways to guard against the kind of illegality in the U.S. that continues to swirl around the company and its newspapers in the U.K., said industry executives. News Corp. closed its News of the World newspaper two Sundays ago after it was revealed its reporters hacked into the phone systems of politicians and private citizens. The FBI and Justice Department have reportedly opened investigations into the scandal after several U.S. lawmakers pushed for increased scrutiny based on potential violations of the Federal Foreign Corrupt Practices Act (CD July 14 p7). News Corp. recently hired Williams & Connolly, a prominent Washington, D.C., criminal defense firm, as the legal stakes of the scandal continue to grow.