Satellite broadband providers should be “allowed to operate free from unnecessary common carrier obligations,” the Satellite Industry Assn. (SIA) told the FCC last week. Commenting on the Commission’s Broadband NPRM (WC 05-271), the SIA said it “stands with the diverse array of commenters that have urged the Commission to refrain from imposing common carrier obligations on broadband Internet access service providers.” The SIA urged the Commission to preempt state regulation on the issue and “to act affirmatively” to ensure healthy competition. Satellite broadband remains especially valuable to rural residents, SIA said: “Large portions of the U.S. are not now, and may never be, served by either cable or DSL due to the cost of wiring remote areas or technical limitations.” Satellite broadband shouldn’t be hindered by the common carrier obligations proposed in the NPRM, which would “stymie competition and innovation among satellite broadband providers,” SIA argued. The Assn. said it “urges the FCC to observe its historical policy in favor of minimal regulation of satellite services.” In a similar vein, the Satellite Industry Assn. (SIA) told the FCC it welcomes lawmakers’ efforts to reform the USF contribution methodology. But the SIA wants reform to be “competitively neutral” so as to promote broadband deployment to all Americans, including satellite broadband, the Assn. said in a different ex parte to the FCC. The SIA told the FCC it supports a retail numbers-based USF system. Each phone number in retail use, regardless of service technology, should pay the same USF contribution, the SIA said in an ex parte to the FCC. That way, retail service providers can pass the USF obligation to end users on a “competitively neutral” basis, the SIA said. But the Commission shouldn’t impose USF charges on Internet access connections, SIA argued. USF should be collected from broadband VoIP providers using telephone numbers for voice services over the Internet, but not for Internet access connections alone, they said.
Broadband providers are growing increasingly concerned that FCC attention to protecting customer proprietary network information (CPNI) means a pending rulemaking probably will produce a requirement that they protect such data. Cramming, slamming and truth in billing also were raised in a notice of proposed rulemaking the FCC released in Sept.
The Universal Service Fund (USF) should be tied to all forms of communication, Senate Commerce Committee Chmn. Stevens (R-Alaska) said Tues. at a hearing on the fund’s contribution rules. “This technology is changing so fast” a law is needed that can work for some time, Stevens said. It doesn’t make sense for Congress to rewrite complex rules and then have to change them again because of technology changes. He said the Committee is determined to get a fair set of principles on “who pays in and who pays out” and to eradicate abuses in the program.
NASUCA told FCC Chmn. Martin that, despite rumors of a USF crisis, the program is stable and in no need of major fixes. “Interstate revenues as reported to the Commission have remained stable,” NASUCA said: “The contribution base in the first quarter of 2006 is actually slightly higher than the contribution base from the first quarter of 1999, a period of 7 years.” NASUCA said “this means there is no pressing need -- indeed, possibly no long-term need -- for the Commission to adopt a contribution mechanism other than the current mechanism based on interstate and international revenues.”
The FCC is using a “hoax” argument that the Universal Service Fund (USF) contribution process is broken to justify fee hikes, a citizen group charged Fri. The USF contribution formula “requires at most minor adjustments that can be accomplished without hefty increases in federal phone fees,” the Keep USF Fair Coalition said. The group opposes FCC Chmn. Martin’s proposal to move from a long distance revenue- based system to one based on how many telephone numbers a carrier serves, claiming it would penalize low-volume long distance callers. At a news event set for today (Mon.), the group will discuss “the phony USF funding crisis.” A Tues. Senate hearing will address USF contribution methodology. Progress & Freedom Foundation Pres. Ray Gifford said the coalition’s view “is contrary to established fact.” The long distance industry, which is the basis for the current contributions system, “is in decline and it makes no sense as a funding vehicle for universal service in the age of VoIP technology.” A PFF working group has endorsed per-line fees.
The Senate Commerce Committee on Thurs. listed witnesses for a universal service fund (USF) hearing Feb. 28: Glenn Post, Century/Tel CEO; Tom Simmons, vp-public policy, Midcontinent Communications; Trent Boaldin, pres.-Epic Touch; Bonnie Cramer, AARP member; and Paul Garnett, asst. vp-regulatory affairs, CTIA. The witnesses are to testify at the first hearing, on USF contributions. The 2nd hearing, on USF distribution methodology, will hear from Jeff Mao, Me. Dept. of Education; Shirley Bloomfield, vp-govt. affairs, NTCA; Carson Hughes, Cellular South; Tony Clark, pres.-N.D. Public Service Commission; and Free Press Policy Dir. Ben Scott.
A House universal service bill revealed in draft form in Nov. may see formal introduction by the end of Feb., sponsors said Wed. at a Congressional Rural Caucus forum. The timing may depend on negotiations with rural telcos on capping the Universal Service Fund’s size, Reps. Terry (R-Neb.) and Boucher (D-Va.) told rural House members at the forum.
Rep. Boucher (D-Va.) asked NARUC to take a position on broadband network neutrality and universal service reform. In a Tues. talk at the NARUC winter meeting in Washington, D.C., Boucher urged NARUC to “get involved. You have a special understanding of the situation and we want your advice and guidance.” NARUC also heard from industry panelists and Sen. Wyden (D-Ore.) on network neutrality.
CTIA officials are promoting a new proposal for USF reform that combines the “numbers-based” approach to collections promoted by Chmn. Martin with a capacity-based assessment for large users. CTIA began circulating its version of USF reform the past few weeks, a spokesman said. CTIA Pres. Steve Largent highlighted the USF proposal Mon. during a lunch with reporters, calling it one of the Assn.’s top priorities.
Using a flat-fee system to support the Universal Service Fund (USF) would hit Latino customers with higher costs, several citizens organizations warned Thurs. A proposal supported by FCC Chmn. Martin would base carrier contributions to the USF on a flat, per phone number basis. Since carriers pass those costs onto customers, low-volume customers would pay the same as those who make a lot of phone calls, said the groups, part of the Keep USF Fair Coalition. The USF is now funded on a revenue basis, so low-volume customers pay less than high-volume users. Those who make few long-distance calls or use prepaid wireless phones will either have to pay more or start paying for the first time, said the League of United Latin American Citizens, the Latino Issues Forum and Consumer Action. “Other than older Americans, Latinos and Hispanics account for the largest number of Americans who would end up paying more under the Martin plan for USF” because they are very low income according to Census Bureau data, the groups said in a news release.