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USF Top Telecom Reform Priority, Copps Says

Universal Service Fund (USF) reform should be a pillar of telecom reform, FCC Comr. nominee Copps told Senate Commerce Committee Chmn. Stevens (R-Alaska) at his Tues. confirmation hearing. The FCC needs to hear from Congress what “universal service” means, Copps said. He also said the contribution methodology needs repair. Responding to Stevens’ query on Copps’s top priority in updating the ‘96 Telecom Act, he said: “USF is so essential to the future of this country… I think we've got to fix that system.”

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Copps and FCC nominee Deborah Tate answered questions from Stevens, Committee Co-Chmn. Inouye (D-Hawaii), Sens. Sununu (R-N.H.) and Pryor (D-Ark.) about their approaches to telecom. Tate got warm endorsements from Sen. Alexander (R-Tenn.) and Rep. Gordon (D-Tenn.), who praised her work as a state regulator. Tate told the committee that besides her telecom experience she has a background in mediation, which she felt figures in achieving consensus when “litigiousness gets in the way.” She gave general answers to many questions, asking permission to respond in depth later. The committee honored her request, giving no hint it would oppose either nominee. Stevens said he wants to move the nominations “as quickly as possible” -- perhaps as soon as today (Wed.).

Stevens said while meeting Tues. morning with the White House on another issue he raised the topic of filling former Comr. Abernathy’s position. “I did say a few words down there about that,” Stevens said. The response from the White House? “'Well, we're working on it.’ That was the response. That’s exactly what it was,” Stevens said. Mon., Stevens voiced ire at a lack of White House response to his recommendations for FCC commissioner appointments. “I think I'll be the first chairman of Commerce that was denied the opportunity to recommend someone for appointment in my career,” he said. “I've served on this committee now for 35 years.” Stevens said he’s suggested names but wouldn’t say which. CompTel Senior Vp Robert McDowell, who has strong Republican Party ties, is said to be a strong candidate, industry sources said.

Copps pressed Stevens to change the Sunshine Act, which keeps more than 2 FCC commissioners from meeting at once, a rule some say has slowed policy-making by pushing negotiations to the staff level. “Nobody else works this way,” Copps said: “We need some help.” Stevens agreed, calling the situation “stupid” and pledging to address it. He cited the need to do something in the context of addressing the overall urgency of safeguarding communications: “This is one of the basic rights of Americans: Access to communications.”

The nominees were queried on cable industry family tier proposals unveiled Mon. (CD Dec 13 p1) and whether the move should forestall federal legislation. Tate said the FCC should enforce the laws it has, but it is too soon to decide on further action until details are available on what the industry would do with its family tier. “That would need to be reviewed,” she said.

Copps said it is “encouraging” that the industry has stepped forward with the proposal, but “it isn’t going to happen by itself.” “We're going to have to define what we mean by a ‘family tier,'” he said: “We're not there yet, and we have a long way to go. Let’s keep pushing.” Copps criticized the Commission for not making clear its positions on decency, adding that there’s a role for the Commission and Congress in clarifying the issues. He gave the Commission an “F” for its handling of violence. “People kept pushing the law and no one did anything,” he said.

Sununu used the hearing to chide the FCC for banning VoIP companies from marketing their services if they can’t offer E-911. He pointed out that wireless and some wireline companies don’t offer E-911, but don’t get such “punitive” treatment. The Commission shouldn’t discriminate toward providers, Sununu said. Copps acknowledged Sununu’s concerns about a marketing ban, but said the Commission doesn’t want consumers to be in a situation where they think they can pick up a phone and have 911 service only to find out they don’t.