Making wireless broadband “ubiquitous” in the U.S. will cost $7.8 billion to $21 billion “in initial investment alone,” underscoring the need for a “robust and ongoing” Mobility Fund as the FCC reforms the Universal Service Fund, CTIA said in a letter to the FCC. The report comes at a critical time, with the FCC expected to take up a USF revamp plan at its Oct. 27 meeting, though Chairman Julius Genachowski indicated Thursday that vote may not come off as expected. America’s Broadband Connectivity (ABC) plan, submitted by major carriers, would allocate only $300 million a year to the Mobility Fund for wireless build-out. CTIA is not expected to release a more detailed estimate of the optimum size of a Mobility Fund, an industry official said.

FCC Chairman Julius Genachowski has asked cable lobbyists about what the commission should do with carrier of last resort (COLR) obligations as it contemplates universal service reform, cable executives told us Wednesday. Wireline staff have also asked questions about whether cable companies would be willing to go through the eligible telecommunications carrier process if the commission gets rid of the provision for ILEC right-of-first refusal in the proposed America’s Broadband Connectivity plan, executives said in a reporters’ briefing Wednesday at NCTA headquarters in Washington.

The architects of the industry-backed universal service reform package briefed members of the Congressional Rural Caucus Tuesday, shoring up their case for reform. The briefing included NTCA Vice President Mike Romano, Western Telecommunications Alliance Director Derrick Owens and the National Grange’s lobbyist Nicole Palya Wood, according to a flyer circulating about the event. The briefing was moderated by USTelecom Vice President Jon Banks. NTCA spokeswoman Wendy Mann said “the briefing went well. … Basically, they delivered the message that is included in the comments already filed at the FCC: this is as close as we've been in a long time, this is real compromise and not status quo, the RLEC plan is credible, workable, and meets the FCC’s objectives. We recommend that the FCC keep the proposals intact and let’s move forward."

The incumbent-backed America’s Broadband Connectivity plan is flawed because it retains the rate-of-return system, gives incumbents the right of first refusal for universal service funds, and doesn’t address the nation’s broadband adoption gap, Blair Levin of the Aspen Institute said Monday. Speaking at a roundtable sponsored by the Minority Media and Telecom Council, Levin criticized the $300 million set-aside for wireless carriers, which he called “the wireless dividend,” and blasted the Department of Agriculture for asking the FCC to guarantee Rural Utilities Service loans, which he said creates “horrible false incentives.”

USTelecom took early aim at the FCC’s broadband deployment report. President Walter McCormick said he and his members “were puzzled” by past reports that found that broadband wasn’t being deployed quickly enough. The commission “ignored its own data,” he said. “A year later, we see broadband providers increasing their investment dollars, despite a flat economy. Annual investment rose 4.2 percent to $66 billion in 2010, from $63 billion in 2009, according to USTelecom and Yankee Group data,” McCormick said. “Clearly, our country is enjoying robust levels of broadband investment that is delivering on promises of speed and reliability and providing very high levels of consumer satisfaction.” The FCC opened comments on its next report, the so-called Section 706 report, in August. The comment cycle concludes in October and the report is expected early next year.

NAB President Gordon Smith has a connection to the new staff director for the Joint Select Committee on Deficit Reduction. The committee’s co-chairs -- Sen. Patty Murray, D-Wash., and Rep. Jeb Hensarling, R-Texas -- announced Tuesday that Mark Prater, Republican deputy staff director and chief tax counsel for the Senate Finance Committee, will lead staff on the so-called “supercommittee.” Prater’s wife Lori worked for Smith from 2003 to 2008 in the Senate. Mark Prater himself has not focused specifically on telecommunications but has dealt with broader tax issues that affect telecom companies, a telecom lobbyist said. Last year, for example, he helped pass a bill with language removing wireless devices from IRS “listed property” rules, the lobbyist said. Prater also spoke about telecom tax issues at a 2004 summit hosted by USTelecom and Deloitte. The select committee is expected to consider spectrum auctions as it looks this fall for $1.5 trillion (CD Aug 11 p1) in budget cuts and revenue increases. The six Republicans on the select committee met Tuesday on Capitol Hill. The full group is expected to formally meet soon after Congress returns from recess Sept. 6. NAB didn’t respond to a request for comment.

Parties to the America’s Broadband Connectivity Universal Service Fund reform package met with the FCC to discuss ways to give the public access to the group’s modeling data, ABC said in a filing Monday in docket 01-92 (http://xrl.us/bmbvp8). “Because the model and large data files are not readily compatible with the Commission’s electronic filing system, we discussed methods of providing web-based access coupled with ex parte filings providing notice of relevant web links to the model and data files,” the groups said in an ex parte notice filed on USTelecom letterhead. “In addition, we discussed potentially providing different levels of public access to the model from generating reports based on existing solution sets via web access to providing access to model source code and the ability to input data and run unique solution sets.”

An influx of freshmen in the 112th Congress forced the telecom industry to increase education efforts in 2011, industry lobbyists said in interviews. This year there are 13 freshman senators and 93 new House members. As a result, telecom lobbyists have had to spend more of their time teaching the nuts and bolts of major telecom issues like spectrum and Universal Service Fund reform, lobbyists said.

CTIA questioned whether the $300 million dedicated annually to support of mobile broadband services by the USTelecom-brokered agreement on Universal Service Fund and intercarrier compensation regime reforms is enough to meet the nation’s needs. CTIA filed comments late Wednesday on the plan and USF overhaul. (See related story in this issue.) “CTIA applauds the recognition of the need for on-going support for mobile services, however, this funding level appears insufficient to meet the needs of mobile broadband consumers in high-cost areas,” the group said (http://xrl.us/bmbduq). “This is particularly true given that CTIA submitted a cost study in 2008 demonstrating that it would require an investment of approximately $22 billion to bring ubiquitous 3G service to unserved areas.” As it decides the proper allocation to wireless, the FCC should “take account of the fundamental nature of mobile networks, which must be available wherever Americans live, work, and travel,” CTIA said.

For the second time in three years, the FCC could be on the cusp of making major changes to the Universal Service Fund and intercarrier compensation regimes. In late 2008, those efforts fell flat when then-Chairman Kevin Martin appeared to have support lined up for a reform order, but pulled an item prior to a vote. All signs this time around are that Chairman Julius Genachowski would like to succeed where the former commission fell short.