An FCC proposal to crack down on “traffic pumping” by changing its rules got a mixed response in comments filed late Monday. Big long-distance companies like AT&T continued to encourage the agency’s plan, but rural telecom groups warned against “over-regulating” and “unintended negative consequences.” George Mason University’s Mercatus Center concluded the FCC’s proposals are “flawed” and offered the agency a different approach.
The Senate passed 72-14 Friday a farm bill with provisions making loans for rural areas with few or no broadband providers more readily available. Telecom groups praised the long-stalled measure, which still must be conferenced with a House bill. The bill would create a nationwide broadband service provider database modeled on a program in Kentucky that has received widespread praise. “We are particularly pleased with the proposed reforms made to the Rural Utility Service (RUS) broadband program to better target broadband loans to rural communities and increase the number of service providers that are eligible for the loans,” said USTelecom President Walter McCormick. The bill would ensure that “all consumers enjoy the same benefits from high- speed Internet services, regardless of where they live,” McCormick said. The cable industry gave a thumbs up on passage of the bill as well. “We are especially pleased with the provisions of the Farm Bill that reform the RUS Broadband Loan Program to ensure that funds are better directed to rural communities that currently do not have access to broadband service,” said NCTA President Kyle McSlarrow.
A digital TV order requiring broadcasters to air public- service ads has been held up on the FCC’s eighth floor because of commissioners’ concerns and many higher priorities, agency sources said. A proposed order was circulated by Chairman Kevin Martin in mid-October (CD Oct 18 p7). But at least two commissioners haven’t voted on it, the sources said.
AT&T has hired former Rep. Michael Forbes, D-N.Y., to lobby on the Foreign Intelligence Surveillance Act and other telecom issues, according to registration documents filed with the Secretary of the Senate. Forbes, who quit the GOP while in office to become a Democrat in 1999, spent three terms in Congress and was among the first members to develop a website accepting campaign donations. AT&T’s signing of Forbes stands out by publicly identifying work on FISA legislation. Phone companies have hesitated to discuss their alleged involvement in a secret warrantless surveillance program ordered by the president after Sept. 11.
The House unanimously passed a bill (HR-3919) Tuesday to create a map of broadband providers nationwide with the goal of finding areas with little or no service. “This will give us the data we need to construct policies” to increase broadband deployment throughout the country, and help the U.S. become more competitive internationally, said bill sponsor and House Commerce Telecom Subcommittee Chairman Ed Markey, D-Mass. A separate bill (HR-3403) to promote E-911 service was set to pass Tuesday evening on a roll call vote. HR-3403 had strong bipartisan support during floor debate earlier in the day.
USTelecom elections: Ron McCue, Star Communications, to chairman; Dan Hesse, Embarq, vice chairman. Arne Haynes, Rainier Connect, rejoins board… Jeff Oxley, ex- Eschelon Telecom, named executive vice president and general counsel at Integra Telecom… Minoo Mortazavi, ex-JDS Uniphase, named vice president, strategic materials, at network systems company Infinera… Cable in the Classroom Executive Director Helen Soule leaving at year-end for unspecified other opportunities.
Wireless broadband easily outpaced wireline last year in new high-speed broadband connections, the FCC said in its twice-yearly report on U.S. broadband data. The commission’s numbers echo reports from wireless carriers about rapid growth in their data offerings. Wireless carriers hope the FCC will view the report as evidence it shouldn’t cap Universal Service Fund payments to competitive eligible telecommunications carriers (CETCs).
The FCC launched a rulemaking that proposes a single rate for pole attachments, to be paid by wireline carriers, cable operators and competitive local exchange carriers alike. That would be bad news for cable operators, which generally pay the lowest rates. Incumbent local exchange carriers generally pay the highest rates. The rulemaking also asks an extensive series of questions on matters that have been raised by telecom carriers and cable companies.
Exclusive service contracts between cable operators and multiple dwelling unit owners will be outlawed by an order adopted Wednesday by the FCC. The ban, on current exclusivity clauses as well as future ones, applies to most wire-based pay-TV services. The commission opened a new rulemaking that would extend the ban to DBS and private cable operators. About 30 percent of Americans live in apartment buildings or other MDUs, the commission said. Wednesday’s action will make sure those consumers can choose which pay-TV provider to do business with and help keep cable prices down by removing hurdles for phone companies that want to sell video services, Chairman Kevin Martin said. “Trying to remove any barriers to those cable overbuilders is really critical,” he said. The FCC also adopted a cable franchise order originally slated for the commission’s Sept. 11 meeting.
Voting 402-0, the House passed HR-3678, banning Internet access taxes for seven years -- the third and longest extension since the moratorium’s 1998 adoption. The telecom and high-tech industries lauded the vote, saying it enhances certainty for Internet-dependent businesses. Lawmakers who back a permanent ban voiced pleasure at improvements made last week by the Senate to the bill that the House passed Tuesday. The president is expected to sign the measure. The current moratorium expires Wednesday.