Rep. Doris Matsui, D-Calif., plans Tuesday to reintroduce her broadband adoption legislation to create a USF Lifeline program subsidizing high-speed service for low-income Americans, a Matsui spokeswoman said. Matsui is a member of the House Communications Subcommittee. This year’s bill is largely the same as HR-3646 from the 111th Congress, but adds a provision to prevent duplication of subsidies. The bill may have to overcome concerns about government spending and balancing support to urban and rural areas.

A federal appeals court largely affirmed an FCC order asserting its program access rules over vertically-integrated and terrestrially delivered programming. But it vacated a part of the rule closing some of the “terrestrial loophole” that labeled some acts of withholding such programming as categorically unfair. That step was arbitrary and capricious, the Court of Appeals for the D.C. Circuit found in Cablevision v. FCC. The decision led both proponents and critics of the rule to claim victory. “As we've said all along, and as this court reinforced, given the local and regional nature of terrestrial programming, such exclusives can be highly pro-competitive,” Cablevision said. Verizon, AT&T, USTelecom and Consumers Union praised the decision for affirming the FCC’s authority over terrestrially-delivered programming.

USTelecom and CTIA are concerned about the Commerce Department’s data disclosure directive, they said in a letter to Commerce Secretary Gary Locke and White House Cybersecurity Coordinator Howard Schmidt. The groups said they want to know more about how the data will be used and shared and what security precautions will be employed. Current efforts to understand how the information will be used “have been met with ambiguity,” the letter said. USTelecom and CTIA said their concerns are “exacerbated” by the fact that the directive carries criminal penalties for noncompliance under the Defense Production Act. The groups asked in the letter that Locke provide more time to the recipients of the directive in order to “provide a sufficient opportunity for engagement on and resolution of all reasonable concerns.”

The FCC shouldn’t get bogged down in questions of how to classify text messaging for Universal Service Fund contributions or any other piecemeal approach to universal service contribution reform, USTelecom warned the commission in comments posted to docket 06-122 and released Tuesday. “Universal service contribution issues need to be addressed in a comprehensive proceeding, not through ad hoc proceedings, such as those for which the Commission requests comment here,” USTelecom executives David Cohen and Jonathan Banks wrote in their comments.

p.MsoNormal, li.MsoNormal, div.MsoNormal { margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: “Times New Roman”; }div.Section1 { page: Section1; }

The House Commerce Committee is content to let the FCC take a first run at the Universal Service Fund overhaul, a committee spokeswoman told us Friday. “We are waiting to see what the FCC decides to do before we make a decision on whether legislation is necessary,” the spokeswoman said. Congress’ tacit approval of the FCC’s reform schedule had been expected (CD Feb 8 p1) but Friday’s statement comes amidst a blitz by rural telcos trying to get the Hill to intervene in the USF proceedings (CD May 25 p8). On the Senate side, Commerce Committee Chairman Jay Rockefeller, D-W.Va. has said D-block legislation is his “highest priority” (CD Feb 17 p4).

CTIA strongly opposed an FCC proposal that wireless carriers pay Interstate Telecommunications Service Provider (ITSP) fees for the first time. The opposition came in comments responding to a May notice of proposed rulemaking on changes to the commission’s regulatory fees regime. PCIA said a proposed 20 percent fee increase on Private Land Mobile Radio Service (PLMRS) licenses would be unfairly burdensome. USTelecom said the FCC needs to make fundamental changes to its formula for calculating ITSP fees, which go well beyond anything proposed in the NPRM. For FY 2011, Congress has mandated that the FCC collect $335,794,000 through regulatory fees to cover its cost of operations.

Session Initiation Protocol, the primary open standard used by service providers, works with IPv6, said Dan York, director of conversations at Voxeo, a provider of interactive voice services. But service providers need to make sure devices running on the network are IPv6-ready, he said during an USTelecom webinar Thursday. He said he expects IPv4 and IPv6 to co-exist for quite some time before a full transition. A dual-stack protocol implementation in an operating system is a key IPv4-IPv6 transition technology, he noted. Now is a good time to experiment with IPv6, he said, noting June 8 is the World IPv6 Day, the date for the first global trial for the new Internet protocol. Most of the network vendors have been IPv6-ready for a long time, he said. Some providers may continue IPv4 but have IPv6 on their internal networks, he said.

The FCC’s comment period has closed and industry officials are pressing their cases for Universal Service Fund and intercarrier compensation regime updates at venues from the Hill to the commission. Talks continue, with the hope of reaching an industry-wide consensus, but each sector has already begun pressing cases in ex parte meetings and Hill visits. Rural telcos have been dropping letters off on the Hill, asking legislators to urge FCC Chairman Julius Genachowski “strongly” to “consider the proposals put forward by the rural associations (OPASTCO, WTA, NTCA and NECA).” OPASTCO Vice President Randy Tyree said he hopes Congress will “weigh in and let the FCC know the importance of rural cooperatives that are out there serving and doing a good job.”

Industry remains divided on how best to fix the Universal Service Fund and intercarrier compensation regimes, with a few months left before an FCC-promised deadline. Despite broad agreement that USF and intercarrier comp need fixing, reply comments show deep divisions over such questions as how quickly to transform to an all-IP network, how to treat VoIP service and the role of satellite and wireless technologies. “There is no doubt that the current universal service fund … and intercarrier compensation regimes are not sustainable in light of market and technological changes,” the Independent Telephone & Telecommunications Alliance said. “The comments show that there is no industry consensus in favor of the reforms outlined in the Notice or any other plan to promote broadband deployment to unserved areas.” The replies were posted in docket 10-90.