USF Contribution Order May Take Longer than Expected

The first question Genachowski got during his appearance before the subcommittee, from Chairman Greg Walden, R-Ore., was on the USF contribution factor. Walden noted that the contribution factor was 17.9 percent this quarter and is expected to stay above 17 percent. Genachowski promised action “in the near future” and said “our strategy was to first tackle the spend[ing] in the programs, get those under control, direct them to where they should be directed. Having done that, the next step is to look at the contribution base."

"Are you thinking three months, six months, next week, a year?” Walden asked. “I'd say starting the process, certainly, within the next six months,” Genachowski said. The timetable laid out by Genachowski is somewhat slower than expected. Commissioner Robert McDowell raised contribution reform as a key issue when the FCC was developing the distribution order last year. McDowell said in an interview last month he hoped for a vote on contribution reform mid-year (CD Jan 09 p1).

Rep. Lee Terry, R-Neb., asked Genachowski if the FCC needs Congress to pass legislation so the agency can require all who should pay into the program to do so. “Do you need us?” Terry asked. “I'm not sure yet,” Genachowski responded. “Our General Counsel’s office has looked at this. That will be something that we look at in the proceeding. Certainly, we'd come to you and ask for help if we need it.”

Walden also asked Genachowski about the more than 30 700 MHz waiver applications “stalled” before the FCC from jurisdictions anxious to get started on local public safety networks ahead of a national network (CD Feb 13 p1). “If states are ready to go, including, we've heard from Oklahoma, and already have the funding to deploy their own networks at the own costs, why is the commission holding them back?” Walden asked.

"I will say that assuming Congress, in the near term, adopts the legislation before it, including funding the public safety broadband network, that will make it very easy for us to complete this very quickly,” Genachowski responded. “We don’t want to start things going that will be different from what Congress instructs us to do.” Genachowski said he understands “the frustration” of the waiver applicants. “I'm hoping the Congress is on a path to make this easy,” he said. “If Congress does pass the [spectrum] legislation, we'll move forward very quickly because it’s very important.”

Walden also asked Genachowski why a docket examining whether to reclassify broadband as a Title II service remains open. “How many employees are currently working on that docket and why is it still open?” Walden said. Genachowski responded that no staff are dedicated to the investigation. “Why not close it then if nobody’s working on it? It’s been open since ‘09,” Walden said. “Its something that we'll consider,” Genachowski replied. “It’s something I'll discuss with the staff and my colleagues.”

Ranking Member Anna Eshoo, D-Calif., asked Genachowski about “bottlenecks” at the FCC’s lab in reviewing new wireless devices prior to approval. “This is something that I'm concerned about,” Genachowski said. “We've had an unbelievable proliferation of devices in the last few years and each device has more antennas inside it than it used to. The work to certify devices has gotten a lot greater and that process is under pressure.” The FCC has launched an internal review and the Office of Engineering and Technology is looking at ways of meeting growing demands, he said.