Lobbying spending by communications firms is likely to show a slight overall decline in 2008, once fourth-quarter figures are compiled, according to initial filings with Congress. Fourth-quarter filings are due June 20, but mid- year comparisons show slower spending in the first half of the year compared with 2007: $100.1 million compared with $173.1 million in last year’s mid-year report, according to computations by CQ Political Moneyline. The communications industry ranks third in lobbying spending, behind the health care and finance and insurance sectors, according to Moneyline’s 2008 rankings.

Internet service providers are getting cozier than ever with the recording industry, thanks in part to the involvement of New York Attorney General Andrew Cuomo. RIAA confirmed that it’s phasing out its five-year-old campaign of lawsuits targeting end users suspected of P2P copyright infringement, and will instead send warnings through ISPs to their subscribers. Similar to some universities’ policies on repeated infringement, ISPs will at least briefly cut off Internet access to subscribers for which they receive repeated complaints from record labels. RIAA has “agreements in principle” with “leading ISPs,” a spokeswoman told us, declining to name them.

Rural phone companies met Tuesday with members of the Obama-Biden transition team to discuss proposals for broadband incentives in the economic recovery package, executives said. Verizon, AT&T, Qwest, and USTelecom met with the team last week to offer suggestions, company officials said. Documents from the meetings are starting to make their way to Change.gov, the transition team’s Web site. President-elect Barack Obama has promised to publicize meetings with business representatives, to post summary documents and solicit public commit.

Largely reiterating past arguments, telecom interests fought over when and how to revamp the Universal Service Fund and intercarrier compensation. In comments last week, carriers, states and others dissected three FCC overhaul plans, known as Appendices A, B and C. Appendix A is FCC Chairman Kevin Martin’s Oct. 14 revamp plan, B is a proposal addressing USF only, and C a revised Martin plan incorporating changes sought by the Organization for the Promotion and Advancement of Small Telecommunications Companies and other groups. Earlier this month, Martin said a revamp this year is unlikely (CD Nov 19 p2). But other commissioners have said they want to vote on an order at the December meeting. (See separate story on the FCC agenda in this issue.)

The telecom and technology industries gave almost twice as much campaign money to Rep. John Dingell, D-Mich., as they did to Rep. Henry Waxman, D-Calif. He toppled Dingell to become the Commerce Committee’s chairman. Telecom trade groups and technology companies gave Dingell $178,000, compared with $94,500 for Waxman, according to CQ’s Political Moneyline campaign finance reports. Overall, Dingell received $1.9 million in contributions from PACs in the 2008 campaign, vs. $610,210 for Waxman, reports said.

The FCC must improve administration of the Universal Service Fund, USF payers and recipients said last week in comments on an October FCC inquiry into how it might strengthen USF management, administration and oversight (CD Sept 15 p7). High error rates cited in a 2007 Inspector General audit worry the FCC. Meanwhile, Universal Service Administrative Co. and parent National Exchange Carrier Association urged the FCC to approve a divestiture of USAC from NECA.

Ron McCue, Silver Star Communications, re-elected USTelecom chairman; Steve Oldham, SureWest Communications, becomes vice chairman, Jim Cicconi, AT&T, is secretary, and Bert Kramer, D&E Communications, remains treasurer … Francois Barrault resigns as chief executive, BT Global Services and as BT Group board member; Hanif Lalani promoted to replace him… Talk Radio Network names Phil Boyce, ex-WABC New York, president of Talk Radio Network Syndications and president of programming. President George W. Bush to designate Deborah Garza as acting assistant attorney general in Justice Department’s Antitrust Division… Fred Scott, ex- GE and Sony, joins Communications Specialties as director of strategic development.

Telco proposals for calculating rates charged to companies running wires on utility poles would increase costs, the NCTA said in an FCC filing Friday. Plans by USTelecom and AT&T and Verizon to set a new formula for broadband providers would raise rates 50 to 200 percent above those in the NCTA’s plan, the cable lobbying group said. It proposed that all broadband providers pay prices set under the current cable formula.

Small and midsized incumbent carriers shouldn’t have to tell new customers about their competitors, USTelecom said. In a petition late Friday calling for “regulatory parity,” USTelecom asked the FCC to waive the equal-access scripting rule, which also requires the incumbents, on request, to read customers a randomized list of wireline long-distance providers. The rule “increases the operating costs of small and mid-sized ILECs, the voice carriers least able to afford additional burdens, particularly as they compete against voice providers that do not have the same regulatory obligations,” USTelecom said. To comply, “these ILECs must divert resources” from broadband deployment efforts, it said. The rule doesn’t apply to wireless, cable or VoIP carriers, and last year the FCC gave Qwest, Verizon and AT&T forbearance from the requirement in an order easing structural rules for the companies (CD Sept 4/07 p1), USTelecom said. In the 2007 order, the FCC called the rule outdated, designed before cable and wireless companies significantly competed with wireline carriers. But in 2009 a Democratic FCC could create obstacles for USTelecom’s waiver petition. Commissioners Michael Copps and Jonathan Adelstein voted in favor of the 2007 order, but in statements they condemned removal of equal access scripting, calling it “a long-standing and useful tool for consumers seeking information about competitive options.” State consumer advocates probably will oppose the USTelecom petition, said David Bergmann, chairman of the National Association of State Utility Consumer Advocates. The group opposed the 2007 FCC decision and similar actions by state commissions, he said. Competitive carriers may not fight the request, a CLEC source said. Few offer stand-alone long-distance service anymore, removing equal access scripting as a big issue, the competitor source said.

USTelecom said it will team up with the European Telecommunications Network Operators’ Association to “encourage policies that stimulate broadband growth and innovation, safeguard vital social objectives, and advance a global information infrastructure.” The groups will work together Oct. 23-24 at the ETNO General Assembly Forum in Venice, Italy, USTelecom said Tuesday.