FCC not Expected to Adopt Any USF Proposal Entirely, State Officials Say
The FCC might not adopt any existing plan to revamp the Universal Service Fund in its entirety, state officials said at a webinar by the National Regulatory Research Institute Monday. Even if the commission is to adopt an order for the Oct. 27 meeting, it might not be a final order, said James Cawley, chair of the state member of the Federal/State USF Joint Board.
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The FCC is expected to “pick and choose,” Cawley said. Though adopting the entire ABC plan is unlikely, adoption of any part of the ABC plan would be “unfortunate,” said Wayne Jortner, senior counsel with the Maine Public Advocate. State preemption is possible but the FCC might adopt proposals in its rulemaking to give states a few years to complete their own revamps, Cawley said. Meanwhile, the FCC might adopt a temporary order this month and take up the issue again next year, he said.
There’s a real opportunity to get revamp done, said Steven Morris, vice president with the National Cable & Telecom Association. The ABC plan has some good ideas but also raises key concerns for NCTA members, he said. The group objects to the right-of-first-refusal clauses, the long transition to uniform rates and the lack of a cap on USF, he said. The ABC plan is good for states because it would improve fiber and wireless infrastructure deployment, said John Jones, CenturyLink vice president-government affairs. Preemption is necessary because some core elements of the ABC plan couldn’t be achieved without preempting some state authority, he said.
But the law is clear that the partnership between states and the FCC works the best, said Cawley. Nothing in the Telecom Act has changed that, he said. Meanwhile, rural and cable companies that have issues with the ABC plan should have come to the USF Joint Board, he said. The board is supposed to have an important role in any major changes of the USF system but it hasn’t been included as it should have been, he said. The ABC plan isn’t the best plan for rate-of-return companies but “it’s about as good as we can get,” said Robert DeBroux, director of public policy with TDS Telecom. A perfect plan isn’t politically doable, he said. Many rate-of-return companies are suggesting changes in the plan, which could ruin the consensus, he said. Accountability is critical as the FCC revamps the USF system, several speakers said. There should be high degree of scrutiny, they said.