U.S. colleges could see a “staggering annual increase” in phone fees if the FCC moves to a numbers or connections system for collecting universal service fund contributions, the Keep USF Fair Coalition said Thurs. The group -- which has conducted a long-running campaign against the numbers approach proposed by FCC Chmn. Martin -- said colleges could see an increase of as much as $480 million, which could translate to phone service cuts and higher tuition. The coalition said a study shows that colleges could see their USF fees rise to an average of $82,999 from $8,971 now. The fees, paid by telecom carriers, usually are passed on to customers. Under a numbers approach, carriers would contribute to the USF by paying a per-phone number fee, probably around $1, rather than making contributions based on a percentage of revenue, as in the current system.
Comr. Tate promised rural carriers she will push for light-handed regulation of wireless with an eye on encouraging build out of wireless broadband networks. “Wireless providers will be critical to getting broadband out to that last, most difficult mile,” Tate told the Rural Cellular Assn.: “To that end, I believe that the FCC must use a light regulatory touch that gives you the freedom to try new ideas and deploy new technology.” Tate also urged the rural carriers to work with the FCC on USF reform: “We must keep in mind that the Universal Service Fund is not yours, or ours, but is money that has been entrusted to us to use wisely in furthering a public interest Congress has identified.”
The fight over net neutrality language in the telecom bill introduced by House Commerce Committee Chmn. Barton (R-Tex.) threatens to sink any remaining hope for telecom legislation this Congress, Verizon Exec. Vp Tom Tauke said Tues. Tauke said he still sees some hope for legislation that includes only video franchise plus USF reform provisions needed to please Sen. Stevens (R-Alaska), chmn. of the Senate Commerce Committee.
The Senate likely will learn the “hard way” to pare a 10-title telecom bill to get it passed, Rep. Pickering (R- Tenn.) said Tues. at a Pike & Fischer lunch. Pickering called the Senate’s broader approach to telecom legislation a “generous hodgepodge of issues” that need to be addressed.
WHITE SULFUR SPRINGS, W.Va. -- If FCC staff could change communications law, they'd get the agency Sunshine Act relief, many said when asked at an FCBA seminar here for their “wish lists” for Congressional action. Another top wish: Expanding Universal Service Fund contributions by including intrastate and interstate revenue, now barred by statute. Both changes are pending in a bill introduced by Senate Commerce Committee Chmn. Stevens (R-Alaska).
The satellite industry hailed language deep in a telecom bill by Sen. Stevens (R-Alaska) that would strengthen the satellite industry’s hand in 2 arenas where it claims unique utility: disaster communication and rural broadband deployment. If the bill’s satellite provisions survive conference, “it’s a big win for the satellite industry,” Satellite Industry Assn. (SIA) Exec. Dir. David Cavossa.
Rural telcos want a wider contribution base for the universal service fund, plus support for broadband deployment, according to Wed testimony before the House Subcommittee on Rural Enterprises. Groups lauded the approach in a bill (HR-5072) by Reps. Terry (R-Neb.) and Boucher (D-Va.) that would require all 2-way voice services to contribute, create a fund for broadband deployment in unserved areas and put a limit on the fund’s growth.
TracFone disagrees with CTIA over the group’s support for a numbers-based USF contribution method, the CTIA member told the FCC. “A numbers-based contribution methodology would dramatically increase the USF contribution obligations on providers of prepaid wireless services, and, more importantly, on consumers of those services who are typically low volume, often low income, consumers,” TracFone said in its own filing.
A bill to create a market-oriented, competition-based communications regulatory system was introduced Thurs. at our deadline by Sen. DeMint (R-S.C.). Under it, communications firms would be regulated like other businesses, to protect consumers and ensure there’s no unfair competition, he said. Services alike from a consumer’s perspective would be treated alike. As such, phone service offered by a cable, land line or wireless firm would come under standard rules. The USF program would be reformed so all service providers contribute equally and funds go out more efficiently, transparently and in a technologically neutral way. Cable TV franchises would be phased out over 4 years. States’ enforcement roles would be preserved, preserving their authority to protect consumers and manage public rights-of-way. “We can no longer force a modern, dynamic industry to operate on archaic rules that destroy job creation, limit consumer choice and needlessly raise prices,” DeMint said. He urged Congress to “wake up” to the fact that today’s rules date to the days of rotary phones.
Prospects are good for passage of a telecom bill the President can sign this Congress, House Telecom Subcommittee Chmn. Upton (R-Mich.) told a Tues. National Journal breakfast. “Their bill is not all that far away from ours,” Upton said, referring to a Senate telecom bill introduced Mon. (CD May 2 p1). That bill, especially its franchise provision, offers a “hook” to get something into conference where the 2 can be reconciled, Upton said.