Availability of universal service funds for broadband access should focus on disadvantaged users where areas with low adoption rates can be attributed to an “inability to pay for service, lack of computer literacy, unavailability of computers, social factors, lack of subscriber interest,” and lack of perceived value, said ViaSat in an ex parte filing. Because ViaSat-1, scheduled for launch in 2011, will be able to serve remote users and bypassed users, disadvantaged users should be the focus, the company said. The FCC should develop nationwide “price benchmarks” for broadband installation, user education and monthly service and then choose among different levels of federal support for customers who meet state eligibility requirements, it said. The USF program should continue to be technology neutral and should promote the development of new technologies for users, said ViaSat.
Consumer Cellular, a low-cost wireless carrier, is trying to become the latest mobile virtual network operator (MVNO) to get FCC clearance so it can offer Lifeline service under the federal Universal Service Fund program. Consumer Cellular is best known because of a partnership with AARP and provides low-cost service to many senior citizens. It sells service that uses the AT&T network.
SouthernLINC Wireless asked the FCC to grant the Georgia Public Service Commission a waiver after the state agency failed to list four carriers receiving universal support when it sought Universal Service Fund certification from the FCC and the Universal Service Administrative Co. in October. The PSC realized it had made a mistake and sought a waiver. “This mistake was neither the result of a failure by any of the affected carriers to comply with GPSC or Commission rules nor was it the result of any finding by the GPSC that the affected carriers had violated the requirement that USF support be used ‘only for the provision, maintenance, and upgrading of facilities and services for which the support is intended,'” SouthernLINC said. It said omission of the competitive eligible telecommunications carriers was “a simple administrative oversight” for which the ETCs shouldn’t be penalized.
State commissions urged the FCC to ignore Vonage threats that the company would go to court if the regulator modifies without a rulemaking proceeding a 2004 declaratory ruling preempting state regulation of interconnected VoIP. In a letter Wednesday to the FCC, the Nebraska Public Service Commission and Kansas Corporation Commission said no administrative law bars the FCC from immediately issuing a fresh declaratory ruling saying VoIP must pay state Universal Service Fund fees. “The prospect of judicial review should not prevent the FCC from reaching the right decision, which is to act expeditiously to protect universal service and fair competition (currently nomadic VoIP is the only category of provider not paying state USF assessments) by issuing a second declaratory ruling supplementing, clarifying (or if necessary modifying) the first declaratory ruling issued in 2004,” they said. The Kansas and Nebraska regulators also rejected arguments by the VON Coalition that state USF assessments are “economic and entry regulation” preempted by the 2004 decision (CD Dec 14 p12). State USF assessments create no conflict between federal and state policies that would necessitate preemption, the states said. “Both the FCC and the State Petitioners share the common policy that nomadic VoIP providers, like all their competitors, must do their part to support the paramount statutory mandate of ensuring universal telephone service throughout the Nation.”
An independent auditing firm hired by the FCC has identified more than 1,000 telephone companies that may not have filed FCC Form 499-A, as required by commission rules, the FCC Office of Inspector General said in its semi-annual report to Congress. The information supplied on that form is used to calculate contributions to the Universal Service Fund, the telecommunications relay services support mechanism, the cost recovery mechanism for numbering administration and the cost recovery mechanism for shared costs of long-term number portability.
Comprehensive FCC action by July on jurisdictional separations may be a long shot, given a short time frame and ongoing work on the National Broadband Plan, said officials for state commissions and state consumer advocates. The FCC may again extend the nearly nine-year-old freeze on separations, which expires June 30, they said. “Another freeze is certainly a possibility,” said Commissioner John Burke of the Vermont Public Service Board. If the FCC chooses to go in that direction, state regulators believe “interim changes to key factors are an absolute pre-requisite to extending final comprehensive review beyond June of this year,” he said.
Spectrum audit legislation will be a high priority for the House and Senate Commerce Committees when Congress reconvenes next year, industry and Hill sources said. Work likely will start in the House Communications Subcommittee with markup of two bills that address the scope of a spectrum inventory (HR-3125), and strategy for relocating holders of federal agency spectrum, freeing it for commercial use (HR- 3019). The Senate Communications Subcommittee also has an audit bill (S-649). Negotiations are ongoing among congressional staff and the administration on a comprehensive approach, industry sources said. There’s strong bipartisan support for an inventory bill.
AT&T asked the FCC to set a deadline to move telecom from circuit-switched to IP-based networks. The request came in comments this week on an FCC National Broadband Plan public notice that proposed the release of a notice of inquiry (NOI) on the transition. Small rural carriers cautioned the commission not to move too fast. Meanwhile, competitive carriers fought with Verizon over whether interconnection and traffic exchange requirements under Sections 251 and 252 of the Communications Act apply to IP networks. Wireless carriers said the rules should ensure regulatory parity.
The FCC broadband team believes private investment is essential and competition drives innovation and better choices, said Blair Levin, the plan coordinator, at the commission’s meeting Wednesday. The U.S. must make better use of “existing assets” such as the Universal Service Fund, spectrum and rights of way, he said. Chairman Julius Genachowski agreed that USF and spectrum are critical areas and said the government can’t afford to put off a thorough USF overhaul much longer.
The FCC tentatively concluded that the timing of the National Broadband Plan makes it impossible to overhaul the Universal Service Fund high-cost support mechanism for non-rural carriers like Qwest “at this time.” The commission had committed to answer a remand by the 10th U.S. Circuit Court of Appeals on the subject by April 16. In a further notice of proposed rulemaking released late Tuesday, the commission sought comment on specific “interim changes” to address the court’s concerns and marketplace changes. While voting for the order, Commissioners Meredith Baker and Robert McDowell expressed some disappointment that the notice didn’t say more.