Telecom Industry Seeks Agreement on Proposals for USF Reform
Seeking Universal Service Fund reform they can live with, telecom companies have been meeting in small groups for months trying to agree on proposals for the Federal-State Joint Board on Universal Service. As the joint board’s self- imposed Nov. 1 deadline nears, meeting participants have become more closed-mouthed about progress.
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“A lot of people are talking,” said a telecom source in on some talks. “Everyone is talking to everybody and there’s a real sense that change is needed,” he said. According to sources and ex parte filings, AT&T and rural telecom companies are meeting, USTelecom is leading talks with another group of companies, and some groups include wireless representation. But not all carriers are involved. For example, Verizon isn’t taking part in meetings. The FCC and joint board reportedly know of the talks but aren’t involved. “It’s very fluid,” another source said.
Participants termed their conversations “positive” but acknowledged that accord is scarce. At least the players are “coming closer,” said a source. Someone from another group said participants aren’t past the “conceptual” stage. Asked if the joint board will meet the Nov. 1 deadline, he said “that’s anybody’s guess.” The industry meetings need not stop when the board makes a recommendation, another participant said. If meetings produce results, they can be presented to the FCC later, another source said.
The board, assigned to make a recommendation to the FCC, only has hinted at its plans, despite a September declaration that the proposed program would focus on funding “voice, mobility and broadband.” Industry groups hoping for input are trying to fashion recommendations around that broad concept, one source said.
A joint board recommendation may not be firmed up by Nov. 1, most industry observers say. It may not emerge at all if members can’t agree, Joint Board Chairman Ray Baum warned last week (CD Oct 26 p6). “I expect something to come out of the joint board soon although it may be fairly high- level,” said an industry source. “I think they are trying to get it out by the NARUC annual meeting,” occurring Nov. 11 to 14 in Anaheim, she said. “I'm anxious to see it because it’s the first decision on long-term reform, a step in a direction.”
Ex partes describe visits to FCC officials to brief them on progress, with no revelation of where talks are leading. Representatives of the Western Telecommunications Alliance, OPASTCO, TDS Telecom and AT&T wrote Oct. 4 that they met with Ian Dillner, an aide to FCC Chairman Kevin Martin, on “efforts of a cross-section of wireline and wireless entities to develop a comprehensive proposal for reform of USF contributions and distribution mechanisms.” An Oct. 19 TDS report cited phone contact with joint board members about “industry efforts to develop a universal service framework.”
Wireless industry sources said the industry talks haven’t produced results. “We have been begging, pleading to try to come up with a long-term solution on USF reform,” the source said. “In our view those discussions really haven’t gone very far because the rural ILECs are unwilling to be unreasonable.” Rural ILECs see little reason to negotiate, the source said. “Nothing has changed and part of the reason nothing has changed is that no policymaker has ever been willing to say no to rural ILECs,” the source said. “They don’t feel like they have any skin in the game. They don’t feel like there’s any reason for them to have a discussion.”