A court decision that the FCC lacked authority to regulate Comcast network management could fuel arguments for a legislative approach to Universal Service Fund reform, said Hill and industry officials. The ruling may not spur the Hill to action on USF this year, given an uninterested Senate and tight legislative schedule (CD April 7 p4), they said. The National Broadband Plan outlined a way for the FCC to revamp USF on its own, but House Communications Subcommittee Chairman Rick Boucher, D-Va., has voiced skepticism the agency can do a USF overhaul without Congress.

More than a year after the financial meltdown, the credit markets for broadcast deals have yet to thaw. But some industry officials said they see light at the end of the tunnel as ad sales continue to rebound and stations begin to develop new revenue streams through digital products. For now, lenders appear to be waiting for several consecutive months of ad sales growth before funding station transactions, said Mark Fratrik, vice president of BIA/Kelsey, a media consultancy. “I think banks want to see three to four months, maybe even two quarters worth, of strong or positive overall economic news and strong or positive ad revenue numbers,” he said.

Motorola asked the FCC to impose only minimal conditions on waivers granted to local governments and public safety agencies seeking to make early use of 700 MHz spectrum. TIA said the FCC should assure any systems built using a waiver are interoperable. The Public Safety Bureau last month requested comment on the report of the National Public Safety Telecommunications Council’s Broadband Task Force (BBTF), as well as the response of the Public Safety Spectrum Trust to the report. The bureau also asked for comments on the role of the report in moving toward a national interoperable public safety broadband network in the 700 MHz band.

FCC staffers are thought to be reviewing two batches of program access complaints against cable operators in light of how a January order on the subject that became effective Friday affects the cases, industry and commission officials said. The Media Bureau seems to be taking the lead in reviewing complaints by AT&T (CD April 7 p12) and Verizon against Cablevision for withholding HD versions of two regional sports networks, they said. It’s also believed to be involved in reviewing an AT&T challenge to the bureau’s 2009 dismissal of the telco’s complaint against Cox Communications for withholding access to a channel featuring San Diego Padres baseball games.

The Comcast decision on net neutrality resonates in Europe, several sources said Wednesday. The ruling (CD April 7 p1) is a “nice reminder” that there’s a limit to what regulators can do, even in Europe, said Hogan & Hartson (Paris) telecom attorney Winston Maxwell. It could spark confusion over the connection between broadband and net neutrality regulation, said Innocenzo Genna, a Brussels telecom consultant. The issue of net neutrality is proving so important that French telecom regulator ARCEP plans a day-long conference on it this month. Among key topics is how to define it.

Ohio’s Public Utility Commission rejected telecom union demands to rescind an order approving Frontier’s proposed acquisition of Verizon landlines and convene a new set of hearings on the matter. Ruling Tuesday, the commission said it found no merit in arguments for a rehearing advanced by the Communications Workers of America and the International Brotherhood of Electrical Workers. The unions claimed the commission wrongly and unlawfully approved the proposed transactions.

"There’s no compelling reason that this is an exciting thing to do,” Verizon CEO Ivan Seidenberg said about a merger with Vodafone. Speaking at a Foreign Policy Council event, Seidenberg said he would want to revise the structure of the joint venture under which the two companies own Verizon Wireless. The notion of a global wireless-only carrier is no longer the preferred model because of difficulties reaching economies of scale, he said. Meanwhile, Verizon would be open to carrying Apple’s iPhone on its network, Seidenberg said. But it’s Apple’s call, he said.

Company and government officials sought government policies that would let more consumers manage energy consumption using Web-enabled devices, they said at a briefing hosted by Google and the Climate Group Tuesday. Meanwhile, positive signs were seen on Capitol Hill on efforts that could meet the Obama administration’s goal of a comprehensive energy plan, said Carol Browner, assistant to the president for energy and climate change.

The FCC is likely to change its approach to net neutrality after losing a case Tuesday where enforcement of 2005 principles of ISP conduct was at issue, advocates for and opponents of new mandates told us. The U.S. Court of Appeals for the D.C. Circuit ruled that the commission lacked ancillary authority to censure Comcast’s network management practice of blocking peer-to-peer transmissions, as was expected (CD Feb 3 p2). The D.C. Circuit said it was unpersuaded by commission arguments that Sections 1, 230(b), 623, 706 and other parts of the Communications Act made the 2008 order within the scope of its congressional authority. Congress’ role is to facilitate “fresh” discussion on net neutrality, get consensus among all stakeholders and write a law, said House Communications Subcommittee Chairman Rick Boucher, D-Va.

The November elections and other factors probably will slow Hill action on recommendations in the National Broadband Plan, said industry observers. The plan asks Congress for help in a number of key areas. Public safety and Universal Service Fund legislation may have the best chance for near-term action, but neither is a sure bet, they said. It seems particularly tough to move much on the broadband plan this year in the Senate, which right now “can’t agree that the sky is blue,” said a telecom industry lobbyist.