Policymakers and industry should “learn from” Katrina and “improve the reliability, survivability and security” of telecom networks, FCC Chmn. Martin and Comr. Copps said after a Thurs. tour of the Gulf area. “We salute the Herculean efforts” by carriers to restore service, “but in the long term, we will need to learn from this event,” they said Fri. in a joint statement. USTelecom said many central offices in the Gulf area were destroyed and service providers are having trouble finding fuel to restore power. Repair crews face security problems and health concerns, the association said.

The FCC conditionally granted a TracFone Wireless petition seeking forbearance from a rule barring firms that don’t own facilities from participating in the agency’s “Lifeline” low-income support program. TracFone has said it needs the forbearance to be designated an ETC to get Lifeline support, since it provides service entirely on a resale basis. Tues. was the deadline for the FCC to act.

USTelecom (ex-USTA) urged the FCC not to grant a TracFone Wireless petition that would let the prepaid wireless reseller get universal service support under the Lifeline program for lower-income consumers. TracFone seeks forbearance from Telecom Act language limiting universal service support to facilities-based carriers. USTelecom told the FCC in an Aug. 30 ex parte letter that the FCC shouldn’t grant the petition, or at least should open a rulemaking that would impact more than one carrier. However, if the FCC acts, it definitely should place conditions on the forbearance grant, USTelecom said. Among conditions urged by USTelecom: (1) TracFone must verify customers’ Lifeline eligibility “at TracFone corporate offices” rather than at retailers where TracFone cards are sold, and must obtain “verbal confirmation from the customer that his or her household is only receiving support for one line.” (2) The forbearance grant should let TracFone receive only Lifeline funding, not high-cost support. (3) TracFone must certify it’s offering E-911 service and all its handsets are E-911 capable. TracFone, in separate proceedings, also is seeking Eligible Telcom Carrier (ETC) status to get universal service funding in several states, but those requests are on hold until the FCC acts on this petition. The deadline for FCC action is Sept. 6.

Rural and national wireless carriers clashed over whether the FCC’s analysis of the economic impact of intermodal local number portability (LNP) requirement on small carriers is adequate. Calling the analysis “severely deficient,” rural companies and organizations said the agency’s initial regulatory flexibility analysis (IRFA) failed to address the compliance burdens that small carriers will face as a result of the Intermodal LNP Order and to recognize that costs to carry out intermodal LNP substantially outweigh its benefits some places. National carriers argued the opposite.

High-cost universal service support is being distributed properly despite claims by General Communication Inc. (GCI) that ILEC payments must be reduced when competitors take their customers, 6 telecom associations told the FCC. GCI in June asked the FCC Wireline Bureau to instruct the Universal Service Administrative Co. to alter its method of distributing universal service payments because the FCC’s 1997 Fourth Reconsideration Order on universal service called for such “subtraction” of payments. The telecom associations argued that the 4th order was supplanted by the Ninth Report and Order in 1999, which eliminated the subtraction language: “GCI’s request fails to recognize that the methodology changes made in the Ninth Report and Order… rendered the ‘ILEC support subtraction’ language… superfluous.” The companies also argued that “the rule provision that GCI seeks to have restored was shown to be unworkable, unnecessary and anti-competitive more than 6 years ago and should not be resurrected at this late date.” The filing was submitted by the Independent Telephone & Telecom Alliance, National Exchange Carrier Assn., National Telecom Co-op Assn., OPASTCO, USTelecom (USTA) and Western Telecom Alliance. USTA also filed separately (CD Aug 19 p5).

USTelecom (USTA) urged the FCC to deny a General Communication Inc. (GCI) request to change the way high cost support is distributed to carriers. GCI said the FCC should clarify its procedures to reflect an earlier decision that can be interpreted as barring ILECs from getting universal service payments for customers who have switched totally to facilities-based competitors. USTelecom said the GCI request is “procedurally improper” because “the rule that supposedly needs clarification… was modified over 5 years ago and, critically for GCI’s request, has been applied in the way about which GCI complains ever since.” According to Aug. 17 USTelecom comments: “During those 5 years, the entire industry has understood the application of the rule, so there is no need for ‘clarification’… GCI has cloaked what would be a monumental and, for many communities, a possibly catastrophic change in rural high cost support in a seemingly minor, even innocuous, ‘request for clarification’… In any meaningful sense, the rule is clear -- when a rural incumbent LEC loses customers, the cost of its network remains fully supported. This is the rule and GCI is asking for the rule to be changed not clarified.” USTelecom said the rule at issue involves carriers of last resort: “When a carrier of last resort loses a customer, it does not lose most of the cost of providing service to that customer. Instead, the network and its associated costs remain, as does the obligation to provide service.”

The FCC’s request for comments on whether to expand its new E-911 rules for VoIP providers generated little enthusiasm from telecom or Internet providers in filings late Mon. Businesses from SBC to Skype to Motorola told the FCC expansion could add consumer confusion, particularly if regulations were too specific for an ever- changing technology. The FCC had issued a Notice of Proposed Rulemaking (NPRM) as part of its E-911 VoIP order that asked about a variety of expansions, such as applying the rules to more types of VoIP services or adding more requirements such as performance reporting or deadlines for applying location technology.

Verizon this year has hired 5 firms to lobby Congress, according to the latest filings with the Secy. of the Senate reflecting a flurry of activity over DTV and telecom legislation. Verizon hired the lobbyists on issues such as telecom and broadband, spectrum allocation and regulatory parity in broadband deployment, the documents show. “As issues change you want to give yourself flexibility to be effective,” said a Verizon spokesman.

Lobbying filings for the first half of 2005 are starting to arrive in Congress, according to documents filed with the Secy. of the Senate. Aug. 14 is the deadline for Jan. 1-June 30 mid-year reports. Initial reports show that Quinn Gillespie reported receiving $260,000 in fees from its new client, USTelecom (USTA), which it added in Feb. to lobby on telecom issues before the White House, Senate and House. The firm also received $160,000 from SBC to advocate telecom merger policy and telecom update legislation before both chambers of Congress, the White House and the Commerce Dept.; $160,000 from Verizon Wireless to discuss spectrum issues with the White House, Senate and House; and $160,000 from Verizon to lobby on telecom update reform before the House, Senate, White House and FCC. Wexler & Walker Public Policy Assoc. reported receiving $300,000 from Nielsen Media Research to “educate” both chambers of Congress, the White House and FCC on TV audience ratings systems. Wexler also received $240,000 from Comcast to lobby the House, Senate and FCC on multichannel capacity, program access and regulatory policy on broadband cable; and $80,000 from Mobile Satellite Ventures to lobby the White House and the Commerce and Defense Departments. on permissible uses of mobile satellite services spectrum. MCI terminated Wexler’s services after spending $100,000 to discuss VoIP and UNE-P competition in long-distance services before the Senate, House, White House and Commerce Dept.

The FCC voted at its open meeting Fri. to reduce regulation of wireline Internet access service by reclassifying it as an “information service,” in line with the FCC’s treatment of cable modem service. The U.S. Supreme Court in June upheld the agency’s cable modem classification in the Brand X case, triggering action on the wireline companion piece which had been placed on hold during the litigation. DSL is the most common wireline Internet access service.