NTCA SET TO LOBBY FOR UNIVERSAL SERVICE PROTECTION

NTCA also will focus on bankruptcy legislation, since WorldCom and Global Crossing bankruptcies could leave many member companies with unpaid debt. Other issues NTCA said it was likely to pursue in Congress included: (1) Ensuring that access charges were paid by wireless carriers, long-distance and competitive carriers. (2) Reforming spectrum management. (3) Establishing rural advocacy office. (4) Deploying broadband. (5) Establishing use-based right-of-way system. (6) Providing remedies to prevent states and localities from establishing govt.-owned networks.

NTCA CEO Michael Brunner said FCC was likely to “torque” USF to enable competition in rural areas, particularly from wireless companies. Commission has open proceeding to review USF. If such changes occurred, Brunner said, NTCA would lobby Senate Commerce Committee members to prevent changes. He said several commerce committee members were closely watching what FCC did to USF, since some senators representing states with rural interests helped write USF revisions in Telecom Act and “feel a sense of ownership” of USF policy. While Brunner admitted Congress shouldn’t write specifics of USF policy, he said NTCA could push for introduction of pointed legislation if FCC ruling on USF were undesirable.

NTCA supports of updated bankruptcy laws, officials said, but there’s concern bankruptcy legislation that’s still incomplete in Congress could hurt companies owed outstanding debts from WorldCom and Global Crossing. Assn. recently wrote to Congress members urging them not to pass personal bankruptcy legislation (HR-333). Shirley Bloomfield, NTCA vp-govt. affairs, said Congress didn’t often pass bankruptcy legislation, so any such bill should include legislative solution to conflict between utilities regulation and bankruptcy law. There are fears bankrupt telecom companies will be able to gain debt relief from court and, with it, newfound competitive advantages, she said. Bankruptcy bill was approved by House and conference committee drafted report with Senate legislation. House is expected to adjourn Thurs. and HR-333 isn’t on its calendar. “We will work to ensure that reorganizing carriers do not abuse the bankruptcy process as a means of securing an unfair competitive advantage against our members,” Brunner said.

Rural carriers will push for creation of smaller regional service areas (RSAs) for spectrum auctions, officials said. They are likely to push for measure similar to S-2075, by Sen. Baucus (D-Mont.), that would “re-emphasize the statutory mandate guaranteeing rural telcos full participation in the spectrum distribution system,” NTCA said. It also wants larger rural presence in FCC. Both Sen. Harkin (D-Ia.) and Rep. Terry (R-Neb.) have suggested legislation adopting such change. Bloomfield said association would like to see Jonathan Adelstein placed on FCC before final decisions were made on many proceedings. Adelstein, telecom aide to outgoing Senate Majority Leader Daschle (D-S.D.), is awaiting Senate confirmation. Daschle has expressed confidence that outstanding nominations could be resolved in lame duck session. While broadband continues to be important, NTCA officials expressed doubt it would carry same momentum in next term, especially since unbundled network elements (UNEs) had come under scrutiny.