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Internet service providers (ISPs) should be immune from Universal...

Internet service providers (ISPs) should be immune from Universal Service Fund (USF) contributions because they use, rather than “provide,” telecom services, the Information Technology Assn. of America (ITAA) said in an FCC ex parte filing. That means the FCC…

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doesn’t have the authority to require ISPs to make USF contributions, it said, and “concerns about ’sufficiency’ or ‘competitive neutrality’ do not provide a basis to require” ISP contributions to USF. The ITAA also said the FCC should retain the ILECs’ Computer II unbundling obligations, while eliminating unnecessary regulations. Without Computer II, it said, ILECs could charge ISPs unfairly high prices, resulting in a duopoly of ILEC-affiliated ISPs and cable modems. ILECs remain dominant in provision of wholesale broadband services that ISPs use, ITAA said. The ex parte filing dealt with May 22 meetings with the FCC Wireline Bureau staff.