As the FCC prepares to vote on an order on VoIP outage reporting at Wednesday’s meeting, carriers continued to characterize the proposed rules as unrealistic, unnecessary and burdensome. That’s even though they've been greatly curtailed from what was originally proposed.
Telecom provider representatives defended the use of data caps, during a panel Monday at NARUC 2012, while others said they're unnecessary and can punish users. “Data caps miss the point,” said QSI Consulting President August Ankum. The main problem people look at is high-usage customers, he said, but many users using small amounts of data during busy times has the same effect as a few users using large amounts of data. He presented several different approaches to controlling data usage and said data caps don’t account for usage varying at different times of day or in different areas. Data caps are solutions to artificial problems, said Sascha Meinrath, Open Technology Initiative director at the New American Foundation. He compared data to a multi-lane highway in which all lanes but one are closed off. The providers, not the consumers, are to blame for limited spectrum, he said. But networks really are “maxing out,” said USTelecom Vice President-Industry and State Affairs Robert Mayer. Data caps are needed to ensure network quality, said T-Mobile Mid-Atlantic Regional Vice President Chris Hillabrant. Unlimited data plans would cause slower networks, and using data caps keeps networks running quickly. Daniel Brenner, a partner of Hogan Lovells, said data caps are not an issue because it’s so rare for anyone to use enough data to exceed them. Meinrath argued that scientists and researchers use that much data, and they should not have to be punished with fees for exceeding data caps.
NARUC’s telecom committee passed its resolution on VoIP outage reporting requirements at its winter meeting Monday. But the risk of VoIP service outages doesn’t justify the burden on VoIP providers to report outages to the FCC, industry officials said at a committee meeting Sunday. Meanwhile, the 1996 Telecom Act is “growing long in the tooth” and there would be heavy discussions about what comes next over the next year, said Michael Powell, head of the National Cable Telecom Association, during a general session Monday.
Industry support for FCC process change is ramping up in advance of a markup planned Tuesday in the House Commerce Committee. USTelecom, NAB, NCTA and AT&T supported the bills this week, while CTIA offered cautious support for one proposal. HR-3309 requires rulemaking shot clocks, cost-benefit analyses and a variety of other process changes, while HR-3310 would consolidate many FCC reports and eliminate others. Committee Democrats are expected to oppose HR-3309 but may support HR-3310 after an expected amendment, Democratic House aides said. Meanwhile, companion legislation is stuck in the Senate.
Al Lewis, chief of the FCC Wireline Bureau’s Pricing Policy Division, told colleagues at the FCC last week he is leaving the agency, industry officials said Friday. Lewis’s departure comes at a critical time as the FCC takes on special access reform. FCC officials signaled to competitive carriers that the FCC’s long-awaited order on special access rates will be a focus of the agency this year (CD Jan 27 p1). One competitive carrier lawyer said Lewis’s departure is an important development since he was expected to be a key player as the agency looks more closely at special access reform. But an FCC official said the Wireline Bureau has a “deep bench” of staffers with knowledge on special access. Lewis was previously a lawyer for AT&T. USTelecom, meanwhile, made a filing at the FCC Friday reporting on a meeting there at which wireline carrier officials asked for a special access update “in light of the recent completion of the second round data request.” The letter takes aim at competitors. “USTelecom expressed concern that while ILECs provided extensive data in response to this request, it appears (based upon a review of the Commission’s electronic filing system) that only four non-ILECs provided any data at all in response to an inquiry that sought data from a very broad array of industry participants,” the letter said. “In particular, it appears that many of the entities that have urged aggressive regulatory action in this proceeding chose not to participate in the voluntary data request.” The ILEC representatives met with Zac Katz, soon to be FCC chief of staff, and Wireline Bureau Chief Sharon Gillett among other agency officials.
Broadband pilots, proposed by FCC Chairman Julius Genachowski as part of a revamped Lifeline program, have emerged as a likely bone of contention at the agency as work on the order continues prior to a vote Tuesday. The amount proposed by Genachowski is small -- in the $20 million range -- to be paid for by savings as the FCC clamps down on abuse, agency officials said. But some industry and FCC officials question the wisdom of looking at ways of expanding a program that is already getting bigger just paying for traditional phone service.
Google spent nearly as much as AT&T and Comcast on lobbying in Q4 2011, according to quarterly federal lobbying reports available last Friday. Facebook and Netflix also accelerated their Washington spending as debate over online copyright issues intensified in the fourth quarter. Spectrum legislation, the recently dissolved AT&T/T-Mobile transaction and controversy over possible LightSquared GPS interference also drove communications industry lobbying in the fourth quarter, the disclosure reports showed.
Almost three months after the FCC approved a Universal Service Fund/intercarrier compensation reform plan, major industry players continue to seek significant changes. Comments were due last week on a further rulemaking notice approved as part of the order. How USF dollars ultimately will be divided as the fund is reconfigured to primarily pay for broadband is the key question addressed in most filings. They show that the FCC still has a huge job ahead as it continues to tackle changes to the USF. Numerous petitions for reconsideration have been filed in response to the Oct. 27 order. A second round of comments focusing on intercarrier compensation issues is due Feb. 24. Next week, the commission will begin to tackle Lifeline reform. Also looming are likely changes to the contribution side of USF.
President Barack Obama received twice as many campaign contribution dollars from the Communications and Electronics sector as the entire field of GOP challengers in the 2012 election cycle so far. But among House incumbents, GOP members continued to receive more than Democratic members in political action committee contributions from the sector heading into 2012, showed data from the Center for Responsive Politics. The numbers are consistent with a trend of PACs favoring incumbents and the party in control (CD July 19 p1).
LAS VEGAS -- Questions are likely to continue to arise about usage-based pricing and whether some high-use subscribers should pay more than those that use much less, industry officials said during a panel Monday at CES. One key, speakers said, is that consumers have usage measurement tools available so they can see that the overwhelming majority utilize little enough bandwidth that they don’t face caps or extra charges, panelists said.