Wireline and wireless carriers said the FCC should back away from the controversial finding in its most recent Section 706 report that the commission couldn’t conclude broadband is being deployed to all Americans in a “reasonable and timely” way (CD July 21 p1). But Free Press said the commission was on the right track when it approved its sixth broadband deployment report during the summer and the seventh report should have the same finding. CTIA said the sixth report put too much emphasis on the speed of connections, to the detriment of wireless.

A draft FCC order ties the E-Rate index to inflation and lets schools and libraries lease dark fiber from utility companies other than telcos, advisors to three commissioners said. The proposed order circulated Thursday by Chairman Julius Genachowski would also make permanent a temporary provision that allows communities to use schools’ and libraries’ systems after hours, the aides said. Genachowski is seeking a vote on the order at the Sept. 23 meeting.

FCC Chairman Julius Genachowski will put the question of whether dark fiber should be supported by E-Rate funding on the Sept. 23 meeting agenda, aides to two commissioners said. Industry opposes such measures, saying it’s a violation of Sections 254(c)(3) and 254(h) of the Communications Act. USTelecom and AT&T have had separate meetings with FCC staff in recent days to voice their opposition, ex parte filings said. “AT&T explained that the statutory language does not support making dark fiber eligible for E-rate funding,” its Tuesday filing said. If the agency does order dark fiber to be covered by e-rates, AT&T suggested the commission “should do so in a manner that furthers the national policy goal of increasing broadband deployment in un-served areas,” the filing said. USTelecom said a shift will be “enormously expensive” and raises the specter of competitive bidding violations.

The FCC Wireline and Wireless bureaus sought more comment in the net neutrality proceeding Wednesday. That effectively kicks key decisions on that and broadband reclassification back until after the November elections, said many agency and industry officials. Odds had already appeared slim that Chairman Julius Genachowski would circulate an order on his proposed “third way” reclassification plan Thursday, for a vote at the Sept. 23 open meeting. The development also effectively provides more time for industry discussions, like the ones underway at the Information Technology Industry Council.

USTelecom is urging the Rural Utilities Service (RUS) to take a slow, careful approach to rules governing loans to extend broadband services in rural America. In a letter Tuesday to RUS Administrator Jonathan Adelstein, USTelecom President Walter McCormick said any rules should be “carefully considered and subjected to review and comment from the public prior to being finalized."

Congress should exclude broadband providers and other corporate taxpayers from a proposed “carried interest” provision in jobs legislation under debate, said CTIA, NCTA, USTelecom and four other business associations. They sent a letter Thursday to House and Senate leaders on both sides of the aisle. An amendment to HR-4213 would tax compensation received by individual investment fund managers at ordinary income tax rates, rather than lower capital gains tax rates. But “the proposed statutory language in the substitute amendment is broad enough to capture corporate taxpayers that own interests in partnerships outside of the investment industry,” the associations said. “As proposed, the carried interest provision would seriously disrupt routine business arrangements involving corporate owned partnerships and alliances … By changing existing partnership tax law, the proposal would both penalize U.S. corporations that have partnerships within their existing operating structures and discourage corporations from using partnerships in forming joint ventures that create jobs."

More data on the wireless market would help the FCC better assess how competition may be hurt by special access rates, spectrum policies, early termination fees (ETFs) and exclusive handset arrangements, said the GAO. In a report released Thursday by Capitol Hill Democrats, GAO found significant consolidation and increased wireless usage since 2000. That has resulted in lower prices and better coverage, but also has made it tough for small and regional providers to win subscribers, make network investments and get handsets, GAO said. The report offers support to conclusions in the FCC’s wireless competition report that consolidation has hurt competition. In its May 20 report, the FCC declined to find that the U.S. wireless market is competitive, a sharp departure from previous reports (CD May 21 p1).

A wide array of cable and phone ISPs voiced concern that “damaging consequences to consumers and providers alike” could result if the FCC “rushed” to begin broadband speed testing and released data before resolving technical and operational issues. They pointed to “a number of outstanding issues” that the agency and SamKnows, the FCC contractor doing a six-month performance test (CD June 2 p1), need to address, said a filing Tuesday on a meeting with an aide to Commissioner Mignon Clyburn. Representatives of AT&T, CenturyLink, Comcast, NCTA, Qwest, Time Warner Cable, USTelecom and Windstream attended. “Network engineers and technical experts from a number of ISPs have been meeting with consumer groups and equipment manufacturers since January 2010 to discuss the complex technical issues associated with developing a sound testing program,” said the filing, http://xrl.us/bhxaos. “We are continuing to work diligently and cooperatively with the Commission, SamKnows, and other industry participants to resolve outstanding issues.”

Public interest groups and industry players got what may be their last chance to offer formal comments on Chairman Julius Genachowski’s proposed “third-way” broadband reclassification proposal. Reply comments were due at the agency Thursday. The FCC has logged almost 40,000 comments in the proceeding in the past 30 days, according to commission records, with many of the major players offering extensive comments that go on for dozens of pages.

Bipartisan House Commerce Committee staff met with industry Friday about how targeted legislation on the FCC’s broadband authority should address intellectual property theft, a committee spokeswoman said Tuesday. The Distributed Computing Industry Association (DCIA) responded to the question in a statement Monday (CD Aug 10 p7). Attendees included: Actors Guild of America, the American Library Association, American Federation of Musicians, American Federation of Television and Radio Artists, AT&T, Computer and Communications Industry Association, Center for Democracy & Technology, CEA, Comcast, DCIA, Directors Guild of America, Dish Network, Future of Music Coalition, News Corp., Independent Film and Television Alliance, MPAA, National Music Publishers Association, NBC Universal, NCTA, Progress & Freedom Foundation, Public Knowledge, RIAA, Songwriters Guild of America, Sony Entertainment/Columbia Pictures, Time Warner Inc., Time Warner Cable, Universal Music Group, USTelecom, Verizon, Viacom, Disney and Writers Guild of America-West.