A handful of companies have turned down loan awards from the Broadband Initiatives Program, and officials in the U.S. Agriculture Department’s Rural Utilities Service are in negotiations to get the companies to stay with the program, a RUS spokesman said. “Fewer than 10” of about 300 grant winners have turned down awards, he said.
The FCC approved an order letting schools and libraries lease dark fiber for broadband use, community use of schools’ broadband networks after hours and tying the E-rate cap to inflation. Indexing E-rate to inflation, as had been expected (CD Sept 8 p1), may mean the $2.25 billion annual cap will be raised for the first time in its history. The inflation measure caused Republican Commissioners Meredith Baker and Robert McDowell to part ways with their Democratic colleagues. Baker concurred on inflation and McDowell dissented. Both said they thought the Universal Service Fund -- of which E-rate is a part -- requires comprehensive reform.
Regulators in Kansas and Nebraska amended a request to make retroactive their powers to assess nomadic voice over Internet providers for state universal service funds. This all but clears the way for a declaratory FCC ruling that states can make their own USF assessments, and an order could be coming within weeks, agency officials said.
The House Commerce Committee’s hearing Thursday on Universal Service Fund reform should have had a witness representing rural and regional wireless carriers, Rural Cellular Association President Steve Berry said in a statement. “Numerous studies have shown that consumers are continuing to choose wireless over wireline services,” Berry said. “Neglecting to include wireless has been part of the problem in reforming USF in the past. RCA will not allow it to become a problem in the future. To date, the Wireline Competition Bureau has been given almost exclusive responsibility in the development of USF rules and policies, and that trend must be arrested. I strongly encourage Congress and the FCC to include wireless as it works to reform USF."
A House bill that would overhaul the Universal Service Fund was supposed to have been marked up Thursday, but instead was slated for another round of hearings after Republicans raised concerns to some of the cost containment measures, Rep. Lee Terry, R-Neb., told us. Terry said House Commerce Committee Ranking Member Joe Barton, R-Texas, asked for another round of hearings because “there had been some major changes."
The telephone and cable industries “endorse” Universal Service Fund legislation by Chairman Rick Boucher, D-Va., and Rep. Lee Terry, R-Neb., USTelecom and NCTA executives said in written testimony for a House Communications Subcommittee hearing Thursday morning. HR-5828 “balances many competing interests to modernize universal service and to bring robust broadband to areas of rural America where today’s business case would not support such deployment,” said USTelecom President Walter McCormick.
The poor economy has made more people eligible for discount telephone service under Universal Service Fund low-income programs, but awareness is low, said FCC Consumer Bureau Chief Joel Gurin at a lunchtime Capitol Hill briefing Monday. Gurin and other officials at the event urged Congress to spread the word about the program to constituents. The event was intended to kick off National Lifeline Awareness Week. The Lifeline and Link-Up programs “are being used now by only about a third of eligible Americans,” but enrollment did increase somewhat after last year’s Lifeline Week campaign, said Gurin. The FCC is reviewing comments on ways to reduce waste, fraud and abuse in the assistance programs, including on a proposal to use a centralized database for online certification and verification, he said. The commission is also looking at ways to address consumer complaints about accessing the low-income services, and expanding the program to support broadband, he said. It’s “unacceptable” that “millions of people remain disconnected to the outside world,” said National Association of Regulatory Utility Commissioners President David Coen. Members of Congress can help raise awareness by issuing press releases and calling attention to the program in newsletters and other constituent communications, said Charlie Acquard, executive director of the National Association of State Utility Consumer Advocates. Also, lawmakers should educate caseworkers about the low-income programs and ask carriers about ways to improve Lifeline and Link-Up when the companies’ lobbyists come in for meetings, Acquard said. The name “Lifeline” is “not hyperbole,” said Mark Andersen, social services director of We Are Family in Washington, D.C. “Your telephone is your lifeline.” Senior citizens that Andersen works with on average collect $800 monthly and, after other bills, have little left over for phone service, he said. In 2009, the low-income programs accounted for about $1 billion of the $7.3 billion USF, said Irene Flannery, deputy chief of the FCC Wireline Bureau’s Telecommunications Access Policy Division.
LAKE GRAPEVINE, Texas -- The FCC will consider whether it can support broadband directly through the Universal Service Fund without reclassification, Deputy Wireline Bureau Chief Don Stockdale told the CompTel convention Monday. He said some have filed comments mentioning that there’s already direct broadband support for schools and libraries. Others have pointed to a November 2008 rulemaking that required companies to agree to build-out requirements in exchange for high-cost subsidy. “This is an issue clearly the commission will be asking about,” Stockdale said. He spoke at two sessions at the CompTel conference. In the first, Stockdale discussed inter-carrier compensation and in the second, USF overhaul under the National Broadband Plan.
The Rural Cellular Association urged a Universal Service Fund overhaul that’s “competitively, technologically and revenue neutral,” in meetings with the Wireline and Wireless bureaus, the association said an ex parte filing. RCA President Steve Barry said in a written statement: “Time and again, the FCC has stressed the importance of competition in the wireless marketplace, and it is imperative that the FCC ensure efficient, success-based support to maintain competition and benefit consumers, especially in rural and high-cost areas. … This is all about the consumer, and funding must be targeted to areas where USF is most needed to ensure that consumers in rural and high-cost areas have access to services comparable to their urban counterparts."
Any broadband service provider who contributes to a Universal Service Fund should be eligible to compete for support from the fund, WildBlue said during a meeting with the FCC Wireline Bureau. Competition among the support recipients will effectively reduce the size of the fund, the company said. The satellite broadband market is competitive and at the “cusp of next generation service,” and subsidizing favored technologies would be “harmful to consumers,” said WildBlue. Satellite broadband provides the highest speed and most cost-effective solution for unserved and rural areas and provides competition to cable where DSL may not get upgraded soon, it said. USF contributions should be assessed only on monthly service to end users rather than wholesale services, it said.