Verizon’s proposed plan for determining access charges on VoIP has at least one fan on Capitol Hill: Rep. Boucher (D-Va.), a member of the House Commerce and Judiciary committees. In a National Consumer League forum on broadband Thurs., Boucher said he was “impressed” by the ideas Verizon Senior Vp Thomas Tauke presented last week on VoIP regulation (CD Jan 22 p1). Boucher stressed that reform of access charges and the Universal Service Fund (USF) was critical. Highlighting comments by Senate Appropriations Chmn. Stevens (R-Alaska), who is likely to take the reins of the Commerce Committee in 2005, Boucher said Congress was likely to begin efforts next year on comprehensive reform of USF and other telecom regulations.
Congress will look to rewrite at least portions of current telecom law as early as 2005, Senate Appropriations Chmn. Stevens (R-Alaska) told a USTA Leadership Conference Mon. in Washington. Stevens, who said he “hoped” to take the reins of the Senate Commerce Committee beginning in 2005, laid out a road map for telecom policy that would feature a significant effort to revise parts of the Telecom Act of 1996.
The Federal-State Joint Board on Universal Service appears to be “very much divided” in its effort to seek improvements in the Universal Service Fund (USF)and, as a result, probably will present the FCC with some “conflicting views,” Western Wireless CEO John Stanton said Tues. in an interview with Communications Daily. Even in areas where there’s a majority view in the Joint Board’s recommendations, there probably will be an “active minority” view, perhaps leading to divisions at the FCC as well, Stanton predicted.
Congress isn’t expected to pass comprehensive legislation on communications issues this session, many sources said, but that doesn’t mean lawmakers won’t be busy in the communications realm. Most sources provided a laundry list of issues that would get at least some attention from lawmakers who return today (Tues.) for the 2nd session of the 108th Congress. While no large-scale bills are expected, Congress could pass legislation this year to restrict broadcast ownership, fund enhanced 911 (E911) and spectrum relocation, and renew the Satellite Home Viewer Improvement Act (SHVIA). But there’s likely to be a lot of talk on the Hill about communications issues, as VoIP, universal service fund (USF), broadcast decency and cable rates.
A federal telecom regulator and state PUC representatives clashed over whether a separate regulatory regime should be created for VoIP. In an audio conference Thurs. sponsored by Communications Daily parent company Warren Communications News, Jeffrey Carlisle of the FCC VoIP working group said a minimum regulatory environment for the service wouldn’t necessarily amount to separate treatment for VoIP, which NARUC Gen. Counsel Brad Ramsay said might be illegal. Ramsay had questioned whether VoIP operators should get lighter regulatory treatment than CLECs. Peter Pitsch, of Intel and pres. of the Voice On the Net (VON) Coalition,, said regulation of VoIP could be light if regulators resolved other issues such as access charges and universal service (USF.)
Neb. no longer may be shut out of the Universal Service Fund’s nonrural support fund, but Rep. Terry (R-Neb.) said he would continue to push for legislation that would change the FCC’s formula for distributing USF money to large ILECs delivering service to rural areas. Late last month, the FCC made slight changes in the distribution formula that resulted in more states’ getting funding (CD Dec 30 p6). The nonrural fund, which distributes $235 million to ILECs serving rural customers, has been criticized on Capitol Hill because only 8 states had been getting funding under the FCC’s statewide formula. The recent changes will increase that number to 10, as Neb. and S.D. will get money. Several of the 8 states get more funding under the new system, with Miss. adding $11 million to total $131.2 million and Ky. rising more than $3 million to $23.9 million. W.Va. lost $6 million and Me. lost $3.5 million under the new formula. Neb. will get about $8 million. “I'm encouraged that the FCC found a way to help Nebraska,” Terry said, but “the system is still horribly broken. This will not deter me from moving forward with my legislation to fix the USF system for other rural states. We've still got a long way to go to fix this problem.” Terry said the system was “ridiculous, arbitrary.” He has introduced a bill (HR-1582) that would change the FCC’s system to one that evaluated costs based on wire centers rather than statewide averages, which Terry said would distribute the funds more evenly. The bill is stalled as House Commerce Committee Chmn. Tauzin (R-La.) has said he prefers a comprehensive solution to fixing USF instead of a piecemeal approach. The bill has 71 co-sponsors. Sen. Smith (R-Ore.) also has introduced a similar bill (S-1380), which has 25 co-sponsors, including Senate Commerce Committee Chmn. McCain (R-Ariz.)
Western Wireless and NTCA officials, on opposite sides of many issues on the Universal Service Fund’s future, said Fri. they shared opposition to recommendation of a primary line restriction by the Federal-State Joint Board on Universal Service. Of the issues before the Joint Board, “the specter of primary line restriction is probably most troubling,” Mark Rubin, Western Wireless dir.-federal govt. affairs, told an FCBA lunch.
Rural telecom companies are uniquely positioned to provide wireless services in the vast majority of rural areas, parties said in comments filed with the FCC. They urged the Commission to adopt rules and policies that would provide opportunities for rural telephone companies and eliminate outmoded barriers to deployment of wireless broadband service. The comments came in response to a rulemaking the Commission began in Sept. (CD Sept 11 p6) asking how to promote spectrum-based services in rural areas.
The 9 Democratic candidates for President seldom, if ever, mentioned the term “UNE-P” on the campaign trail, nor are local phone competition issues addressed. While telecom policy isn’t a central issue in the candidates’ stump speech, universal broadband frequently is championed. Former Vt. Gov. Howard Dean (D) also sparked a great deal of attention with recent comments suggesting a need for telecom “re- regulation.” Retired U.S. Army Gen. Wesley Clark has vowed to eliminate NTIA and fold its essential operations into the Commerce Dept.’s Technology Administration.
Several senators wrote to the Federal-State Joint Board on Universal Service leadership to argue against a primary line restriction for the universal service fund (USF). In a Dec. 18 letter to FCC Comr. Abernathy, joint board federal chmn., and Alaska Regulatory Comr. Nanette Thompson, state chmn., the senators argued that limiting USF to the primary line would deny rural consumers equal access to telecom services. The letter was signed by Senate Communications Subcommittee Chmn. Burns (R-Mont.), Senate Minority Leader Daschle (D-S.D.) and Sens. Dorgan (D-N.D.), Johnson (D-S.D.), Baucus (D-Mont.), Snowe (R-Me.), and Lincoln (D-Ark.). It said a primary line restriction would force rural customers to pay “exorbitant rates” for 2nd phone lines or wireless service. It said the Joint Board was considering imposing the primary line restriction, but hadn’t made any formal recommendations at this point. “Rural consumers want and need affordable multiple connections -- often from multiple providers -- just as much as consumers in urban areas,” the letter said. “The fact is that there is nothing reasonable or comparable about denying rural people access to 2nd lines or cellphones.” A primary line restriction would limit rural carriers’ ability to service debt on facilities approved by regulators and built, the senators wrote. They said small business could be badly hurt, since many needed more than one line. “We understand your concerns about the size of the program, but disagree with the need to take this drastic step of limiting support to a primary line,” the letter said.