The $1.5 billion increase in E-rate’s funding cap that FCC Chairman Tom Wheeler will propose in an NPRM to be circulated in time to be voted on at the FCC's Dec. 11 meeting immediately ran into partisan opposition. Commissioner Ajit Pai said in a statement that a potential increase on phone bills by up to 16 cents a month, as Wheeler estimated his proposal could cost, would "burden" struggling families. Commissioner Mike O’Rielly said in a statement that he was “disheartened” by the proposal and predicted the commission will disastrously” impose USF fees on broadband. At a speech to the U.S. Chamber of Commerce, O’Reilly asked for ideas on how to “push back” against Wheeler’s proposal.
Top telecom issues set for discussion at NARUC’s annual meeting this week in San Francisco include states’ authority under Communications Act Section 706, 911 reliability, the USF contribution base and municipal broadband, NARUC members said in interviews.
Going into more detail about the issues he sees facing a Title II approach than he has said publicly, FCC Chairman Tom Wheeler told public interest advocates that the agency would have to grapple with its legal authority to impose net neutrality rules on wireless, given a section of the Communications Act that some say prohibits treating mobile as common carriers, said three people who attended the Nov. 10 meeting. Wheeler also raised questions about the impact reclassification would have on privacy, according to the attendees, as well as an issue commissioners Mike O'Rielly and Ajit Pai brought up Friday at a Free State Foundation panel discussion on net neutrality: Would broadband providers have to begin paying into the USF?
Sen. Mark Begich, D-Alaska, officially lost his re-election bid. Begich had held out hope for several days after last week’s midterm elections in the race against Republican challenger Dan Sullivan, but the race was called in Sullivan’s favor. Sullivan declared victory Wednesday. Begich is a member of the Communications Subcommittee and has actively pursued issues of broadband deployment and USF rules. His loss means the GOP has gained at least eight Senate seats, further strengthening the party’s majority in the next Congress.
Dust still hadn't settled Thursday in several outstanding races following the Tuesday midterm elections. Sen. Mark Begich, D-Alaska, had not yet conceded. Begich was down by more than three points in his re-election fight against Republican Dan Sullivan. Begich is a member of the Communications Subcommittee and has been active on rural broadband and USF issues. Sen. Mark Warner, D-Va., is locked in tight race against Republican consultant Ed Gillespie that has not formally been called, although Warner has maintained a slight lead and is widely considered victorious. The California 17th District House race had also not yet been called. Rep. Mike Honda, D-Calif., has led in the polls against Ro Khanna, also a Democrat and former deputy assistant secretary of Commerce under President Barack Obama.
Status quo prevailed in 16 of the 17 state regulatory commission races where a winner was clear Wednesday. The Democrats gained one net seat after former New Mexico Public Regulation Commission Chairman Sandy Jones defeated PRC Commissioner Ben Hall, a Republican, by 1,482 votes. The Republicans retained at least 13 seats they held before the election, while the Democrats retained their three seats. The results in one seat on the Louisiana Public Service Commission (PSC) remained unclear. A Republican is assured of winning the remaining Louisiana PSC seat following a Dec. 6 runoff because both of the candidates -- incumbent PSC Commissioner Eric Skrmetta and energy policy advocate Forest Wright -- are Republicans.
FCC Chairman Tom Wheeler likely faces more congressional oversight after Republicans won full control of Congress Tuesday. But it's unclear whether the new Congress will have much effect on FCC decision-making, especially on net neutrality, said Washington insiders, including former FCC officials. Industry officials have speculated Wheeler may seek a net neutrality vote on an order in December, before the new Congress is seated (see 1410270055).
Democrats lost control of the Senate and several seats in the House turned over to Republicans, while partisan issues such as net neutrality heat up and debate takes hold over overhauling the Communications Act. Democrats had enjoyed a Senate majority of 55-45, and Republicans gained more than the six seats necessary to seize the chamber, winning at least seven.
LECs that partner with over-the-top VoIP providers shouldn't be allowed to collect local end-office switched access charges, Verizon Assistant General Counsel-Federal and State Legal Affairs Curtis Groves and Executive Director-Federal Regulatory Affairs Alan Buzacott told aides to Commissioners Jessica Rosenworcel and Ajit Pai Oct. 30, said an ex parte filing in FCC docket 10-90. An order being circulated at the FCC would say LECs and VoIP providers are entitled to the access charges (see 1410280032), but Verizon argued neither LECs nor VoIP providers perform "the necessary switching, or controls the switching decisions, that route a VoIP call to (or from) the VoIP customer over the broadband line that connects to the end user’s premises.” Companies that provide “over-the-top VoIP services -- e.g., Skype and Vonage -- have not invested in facilities to serve the end user customers who initiate and receive voice calls. Neither have their LEC partners,” Verizon said. ISPs, not the LECs or VoIP providers, “own, control, or maintain the physical routers, lines, and other equipment that performs analogous switching functions,” Verizon said. Also representing Verizon was Kellogg Huber’s Scott Angstreich, said the filing. Level 3 “uses the exact same facilities to provide local switching for calls terminated to TDM loops, over cable VoIP facilities and over-the-top,” Harris Wiltshire’s John Nakahata, representing Level 3, wrote in a letter to the agency sent and posted on Monday. To allow the access charges terminated to TDM and cable VoIP facilities, but not over-the-top VoIP, “moves in exactly the wrong direction” from the agency’s USF overhaul order, he said.
Eighteen seats on 10 states’ public utilities commissions (PUCs) were up for election Tuesday. Industry observers said in recent interviews that the results of elections to the Montana Public Service Commission and Nebraska Public Service Commission are the ones that could have the most impact on telecom regulation. Two Montana PSC seats were up for a vote, and one Nebraska PSC seat was on the ballot.