Comments continued to pour in Tuesday as the deadline for filings on industry-proposed universal service and intercarrier compensation regime changes expired. Incumbent telcos were mostly fighting a holding action, while a handful of rural carriers recommitted to fighting against the broader industry consensus. The six companies behind the so-called America’s Broadband Connectivity plan (CD Aug 1 p1) said in a statement that they had come up with a “detailed and workable proposal for fixing the outdated and unsustainable universal service and intercarrier compensation programs.” The companies -- AT&T, Verizon, Frontier, CenturyLink, Windstream and FairPoint -- added: “Adoption of the ABC Plan will lead to greater broadband deployment in rural America. The plan enjoys broad support on issues that have paralyzed the industry for years."
State regulators formed a NARUC task force hoping to convince the FCC to create financial incentives to states to lower their intercarrier compensation rates, Vermont regulator and NARUC telecom committee Chairman John Burke told us Thursday. The task force is chaired by New York Commissioner Maureen Harris, Burke said. Members of the task force hope to have recommendations before the October open meeting, when many expect the FCC to move to orders on universal service fund and intercarrier compensation regime reforms, Burke said. Some state regulators are hoping to keep the FCC from preempting state authority with the reforms, he said.
The FCC should consider limiting Lifeline/Link-Up reimbursement to a single line per qualifying adult rather than the proposed single line per residential address, CompTel said in a filing at the FCC (http://xrl.us/bmbmta) on the commission’s further notice of proposed rulemaking. No one should be denied a phone because they live in a group facility, CompTel said. The FCC should also reject arguments that Link-Up reimbursements for non-recurring costs should be limited or eliminated, the group said. “Doing so would recreate a barrier to subscribership for low income consumers,” CompTel said. “The Link-Up program was created to reimburse [eligible telecommunications carriers] for the revenues they forgo in providing low income consumers a discount on service activation fees. Service activation fees are standard in both the wireline and wireless industries and in the absence of Link-Up assistance, consumers will be forced to pay 100 percent of those charges, which very well may discourage consumers from signing up for telephone service.” A beefed up Lifeline/Link-Up program could eventually supplant other Universal Service Fund programs and the FCC should resist “artificially constraining the size of the program, especially now when the nation’s consumers are in the midst of difficult economic times,” the Free State Foundation said Friday in a filing at the FCC (http://xrl.us/bmbk9j). “We support ongoing efforts, such as some the proposals put forward by the Commission, to ensure the programs operate with integrity and efficiency,” the filing said. “For example, we support pro-efficiency and anti-fraud measures to eliminate duplicate enrollment by the same customers with multiple [eligible telecom carriers], to provide Link-Up support to reimburse only costs actually incurred for initiating service, and to improve methods for verifying customers’ eligibility.” The group said the Lifeline program is inherently more efficient than other USF programs. “A primary strength of the Lifeline/Link-Up programs is that their subsidies are targeted to those low-income persons that need them,” the filing said. “Subsidies targeted to individuals are more efficient and can be more reliably monitored for accountability than subsidies targeted more broadly to service providers."
An influx of freshmen in the 112th Congress forced the telecom industry to increase education efforts in 2011, industry lobbyists said in interviews. This year there are 13 freshman senators and 93 new House members. As a result, telecom lobbyists have had to spend more of their time teaching the nuts and bolts of major telecom issues like spectrum and Universal Service Fund reform, lobbyists said.
The Native Telecom Coalition for Broadband urged the FCC to adopt its earlier proposal for a Tribal/Native Broadband Fund as part of changes to the Universal Service Fund. “The proposed ‘Native American’ USF program holds the promise of finally delivering many of the commitments embedded or implied in treaties and acts of Congress that have been languishing for over a century,” the group said in a filing at the commission (http://xrl.us/bmbgs3). “A broadband communications platform will provide the 21st century foundation that is needed to work toward Native American participation in socio-economic advancement, while enhancing their ability to preserve and pass on to future generations longstanding cultural traditions and values."
Small and mid-sized wireless carriers, cable operators and competitive local exchange carriers all criticized parts of the America’s Broadband Connectivity (ABC) plan for making major changes to the Universal Service Fund and intercarrier compensation regimes. The plan, a compromise among major telecom carriers and rural local exchange carriers, is unlikely to be approved without some changes, said industry and FCC officials. The trick for the FCC will be keeping ILECs on board while accommodating other interests (CD Aug 25 p1). The FCC also asked for comment on a “complementary” filing by rural carriers as well as proposals by the Federal-State Joint Board on USF, also discussed in many of the comments.
The adoption of the America’s Broadband Connectivity Plan (ABC Plan) for Universal Service Fund and intercarrier compensation revamp would “send us to the nearest federal court of appeals,” James Cawley, state chairman of the USF Federal/State Joint Board, told us. Most of the state commissions that filed with the FCC on the agreement oppose preemption of state role in determining USF eligibility. But Wisconsin regulators support some limited preemption of state authority and unified access charge rates.
CTIA questioned whether the $300 million dedicated annually to support of mobile broadband services by the USTelecom-brokered agreement on Universal Service Fund and intercarrier compensation regime reforms is enough to meet the nation’s needs. CTIA filed comments late Wednesday on the plan and USF overhaul. (See related story in this issue.) “CTIA applauds the recognition of the need for on-going support for mobile services, however, this funding level appears insufficient to meet the needs of mobile broadband consumers in high-cost areas,” the group said (http://xrl.us/bmbduq). “This is particularly true given that CTIA submitted a cost study in 2008 demonstrating that it would require an investment of approximately $22 billion to bring ubiquitous 3G service to unserved areas.” As it decides the proper allocation to wireless, the FCC should “take account of the fundamental nature of mobile networks, which must be available wherever Americans live, work, and travel,” CTIA said.
For the second time in three years, the FCC could be on the cusp of making major changes to the Universal Service Fund and intercarrier compensation regimes. In late 2008, those efforts fell flat when then-Chairman Kevin Martin appeared to have support lined up for a reform order, but pulled an item prior to a vote. All signs this time around are that Chairman Julius Genachowski would like to succeed where the former commission fell short.
NCTA and the American Cable Association jointly raised concerns about a USTelecom-brokered compromise proposal on Universal Service Fund and intercarrier compensation reform, in a letter to FCC Chairman Julius Genachowski sent Tuesday. Cable operators, as key competitors to telecom carriers for voice and data, are expected to be key players as the commission looks at changing its rules for USF and intercarrier comp. Comments are due Wednesday at the FCC on the so called “consensus” agreement.