House IP Subcommittee Chmn. Berman’s (D-Cal.) “differing orientation” on copyright isn’t keeping Rep. Boucher (D-Va.) from believing his sometimes-lonely crusade to bolster copyright fair use will bear fruit this year. That’s because Boucher has influence elsewhere. He’s on the verge of introducing another “very broad” Universal Service Fund bill that would include broadband in the program, Boucher told us. He expects little opposition to his municipal Wi-Fi bill, originally in 2006’s telecom bill (HR-5252) as a stand-alone measure this Congress, despite telco qualms, he said. Failure to resolve net neutrality will kill broader telecom legislation, like last year, he said -- clarifying his comments on neutrality at a recent State of the Net conference, which sparked wide speculation.
BellSouth told the Fla. PSC it lacks authority to set up an automatic Lifeline enrollment program through incumbent telcos and the state Dept. of Children & Families (DCF) because it has no jurisdiction over the DCF. BellSouth (now AT&T) urged dismissal of a petition for automatic Lifeline enrollment filed by the AARP and state Office of Public Counsel. The petition said only one of 8 eligible Fla. households participates in Lifeline, and the state gets back only about 40% of the dollars it contributes to the federal Universal Service Fund. It said that automatic Lifeline enrollment for any household receiving public assistance from the DCF would be the most effective way to increase Lifeline participation and erase the universal service deficit. BellSouth (Case 06-0677-TL) said Lifeline is important for ensuring that all consumers have affordable access to telephone service, but the PSC can’t exercise a say over another state agency to expand Lifeline participation. It also said the PSC should give recent Lifeline enrollment efforts a chance to work.
Alltel fears Verizon’s universal service reform plan may unfairly target wireless companies, an Alltel official said. The company, still studying the Verizon proposal, “would be concerned with any plan… that implies that wireless is to blame for problems with the current funding system and essentially asks wireless to shoulder much of the burden of USF reform,” he said: “As Verizon correctly identifies, we need a system that provides all high-cost funding recipients with more rational incentives and ensures that consumers receive the benefits of innovation.” Alltel is a major provider of competitive wireless service in rural areas. Verizon’s plan and others will be reviewed by the Federal-State Joint Board on Universal Service 2 p.m. Feb. 20 at the Renaissance Washington Hotel during NARUC’s week-long winter meeting.
Verizon isn’t seeking “sweeping” telecom legislation this Congress, Exec. Vp Public Affairs Tom Tauke told reporters Mon. The 2007 focus is getting broadband to consumers who lack it, but that doesn’t demand major legislation, he said. Congress simply may need to refocus existing grant and loan programs, Tauke said.
Phased-in competitive bidding could slow the growth of the Universal Service Fund (USF) while easing concerns of incumbent rural telcos about shortfalls, Verizon and Verizon Wireless told the Federal-State Joint Board on Universal Service in a proposal filed late Fri. The Joint Board is expected to consider Verizon’s proposal at a Feb. 20 meeting during the NARUC winter meeting in D.C. The Joint Board plans to look at competitive bidding and other ideas for easing demands on the USF during that en banc meeting. The board includes FCC Chmn. Martin, Comrs. Tate and Copps and several state commissioners.
A federal appeals court indicated it may ask the FCC to reconsider parts of an order requiring VoIP providers to contribute to the Universal Service Fund. A 3-judge panel of the U.S. Appeals Court, D.C. questioned possible disparities in the FCC’s treatment of VoIP carriers in relation to other telecom carriers and asked the agency for legal justification for several sections of the order approved last summer (CD June 22 p1), during oral argument Fri.
The Universal Service Fund is too bloated to help expand broadband deployment, FCC Comr. McDowell told an NTCA conference in Orlando. “The Fund simply cannot afford to subsidize broadband connectivity under its current structure,” McDowell said: “The bitter truth is that we can’t keep asking more and more folks to prop up a failing system. Fundamental reform is necessary.” The FCC last summer voted to expand the pool of USF contributors, but “the contribution factor that was supposed to have declined as a result of the FCC’s action is back on the rise again,” he said: “Like a fever that initially responds to treatment only to rage again the next day, the factor initially declined from about 11 percent to 9 percent once we broadened the base. But for the first quarter of 2007 it has risen again to 9.7 percent -- and early indications are that the second quarter figure could spike to over 11 percent. If bold action is not taken soon, this fever will threaten the patient’s life.” The contribution factor is the percentage of eligible revenue that telecom companies must contribute to the USF, and its rise usually reflects a rise in USF disbursements. Wireless spectrum is one hope for broadband deployment in rural areas served by NTCA members, said McDowell: “I hope that you'll be active participants in the 700 MHz auction. The Commission is doing its part to help you move away from reliance on the Universal Service Fund by opening new windows of opportunity for the construction of new delivery platforms with new technologies and robust competition.”
A proposed White House FY 2008 budget would double FCC spending for oversight of the Universal Service Fund, add $2 billion in interoperability funds and spend $426.3 million on the digital converter box program, according to documents submitted Mon. to Congress. OMB Dir. Rob Portman called the President’s budget request “credible” in a briefing with reporters. Portman said he consulted with Congress before drafting the document so he could be responsive to concerns.
A special access provision included in the AT&T- BellSouth merger drew fire during the FCC’s visit to Capitol Hill Thurs. for the first hearing in the 110th Congress. Senate Commerce Committee Chmn. Inouye (D-Hawaii) asked Martin why he voted for the merger if he had qualms about the legality of the provision, referring to a statement Martin released after the merger. “If you felt so strongly, don’t you think you had an obligation to withhold your vote?”
St. Joseph High School in the Virgin Islands told the FCC it has twice filed an appeal of a decision by USAC that it should have to pay back USF funds it received in 2000-2001 and its appeal was twice lost by the FCC. The school sent its first appeal to the FCC office located in Capitol Heights, Md., in Oct. 2006. “The appeal was apparently never re-routed to the appropriate office at the FCC, however, and was never entered into the record for the above listed proceeding,” the school said. In Dec. 2006 the FCC Office of Secy. instructed the school to refile with the Wireline Bureau. “As of the date of this filing, no record of either the original appeal or the retransmission of the appeal is evident in the electronic comment filing system (ECFS) record for proceeding 02-6,” the school said. It asked the FCC for a waiver of the deadline for filing the original appeal.