The American Public Communications Council said the FCC should act with care on a seemingly “innocuous” request by Virgin Mobile to be allowed to sign customers up for the federal Lifeline program online or through automated voice response, without talking to a sales representative for the prepaid mobile provider. The District of Columbia’s Public Service Commission expressed similar concerns about risks of Universal Service Fund fraud. Comments on the petition were due at the FCC last week.
Universal Service Fund “reform” should focus on consumers and “reflect market reality,” CTIA said in a presentation to Priya Aiyar, aide to Chairman Julius Genachowski. “USF should focus on the services that consumers demand, namely mobility and broadband,” CTIA said, in an ex parte letter, saying there now are 285 million wireless subscribers and contributions make up 43 percent of the total USF contribution base. “Reform should avoid marketplace distortions; encourage efficiency; minimize administrative complexity; and require accountability."
All eyes are on Chairman Julius Genachowski on one of the first controversial orders before the FCC since he became chairman: A proposal to reclassify broadband under Title II of the Communications Act in the aftermath of the Comcast v. FCC decision. He faced repeated questions Wednesday, at a Senate Commerce hearing on the National Broadband Plan, about his position on whether the commission needs to reclassify broadband Wednesday. But he offered little beyond what he has said since the decision came down last week. (See related report in this issue).
The schedule for implementing the National Broadband Plan recommendations “is no surprise, either in timing or scope,” Dow Lohnes said in a memo. The most important wireless proceeding this year likely will be that addressing the shifting of some TV spectrum to use for wireless broadband. With more than 20 items, the Universal Service Fund items are the most ambitious parts of the agenda, they said. The entire agenda “is noteworthy for the way the FCC distinguishes between decisions it intends to make and proceedings it intends to open,” it said. The spectrum timetable is the most ambitious and committed, Stifel Nicolaus said in research note. Auctions will begin in 2011, and broadcast spectrum is targeted for auction in 2013. After the Comcast court ruling “challenging the FCC’s broadband jurisdiction, it’s good to push ahead with action where it has clear authority,” the firm said. The commission plans to complete USF rulemakings in 2011, but there is no timetable for orders, “which may reflect some increased uncertainty after the broadband court ruling,” they said. A special access rulemaking this fall could create some risks for the Bells and “opportunities for competitive local exchange carriers and wireless,” Stifel Nicolaus said.
The FCC Thursday put forward a list of 64 items for FCC action, along with time lines. The list includes most of what was recommended by the National Broadband Plan, released last month. The FCC had a similar list of items to work from when it implemented the 1996 Telecom Act, said a former FCC official. Eighth floor advisers were briefed on the plan Wednesday.
The FCC named Carol Mattey Wireline Bureau deputy chief. For the last six months, Mattey was a senior policy adviser on the Omnibus Broadband Initiative. National Telecommunications Cooperative Association Vice President Dan Mitchell said in an interview: “She’s demonstrated her knowledge and understanding of USF reform.” Unless you visit rural and underserved areas, “like she’s been able to, it’s very difficult for FCC staff to get our perspective,” he said.
The FCC is circulating a proposed order in response to a remand by the 10th U.S. Circuit Court of Appeals, an FCC official said. In 2001 and 2005, the court called the commission’s current non-rural high cost support mechanism unlawful, and reversed and remanded the rules. The commissioners will vote on the order by April 16, the official said. The FCC agreed to the deadline after Qwest and three state regulators filed a mandamus petition last year, the FCC official said.
A court decision that the FCC lacked authority to regulate Comcast network management could fuel arguments for a legislative approach to Universal Service Fund reform, said Hill and industry officials. The ruling may not spur the Hill to action on USF this year, given an uninterested Senate and tight legislative schedule (CD April 7 p4), they said. The National Broadband Plan outlined a way for the FCC to revamp USF on its own, but House Communications Subcommittee Chairman Rick Boucher, D-Va., has voiced skepticism the agency can do a USF overhaul without Congress.
The November elections and other factors probably will slow Hill action on recommendations in the National Broadband Plan, said industry observers. The plan asks Congress for help in a number of key areas. Public safety and Universal Service Fund legislation may have the best chance for near-term action, but neither is a sure bet, they said. It seems particularly tough to move much on the broadband plan this year in the Senate, which right now “can’t agree that the sky is blue,” said a telecom industry lobbyist.
The FCC’s April 21 meeting will start the agency on the long road to implementing the National Broadband Plan. The FCC will take up items touching on the future of the Universal Service Fund, data roaming, an area discussed by the plan, and two media items on network-gateways and CableCARD rules, also in the plan (CD April 1 p4), officials said. Dozens of other plan-related items await commissioner attention. Industry and FCC officials expect an active year as the agency moves forward on implementing the plan.