Gov. Dave Freudenthal, D-Wyo., urged the FCC to waive his state’s deadline to file for rate-comparability certification. Without the waiver, the state’s late filing will cost telecom carriers there more than $3 million in universal service high-cost support this quarter, Freudenthal said. “Receipt of this support is particularly significant given the rural nature of our state and our small population.” The waiver request, by the Wyoming Public Service Commission, “does not try to expand” the USF, he added.
The FCC should adopt reverse auctions to “reduce the amount of money wasted” on the universal service fund, the Seniors Coalition said. The Seniors also urged the Commission to “curb abuses” under the “identical support rule” that bases USF subsidies on the cost of running incumbent telecom companies. “When a wireless carrier that has made little or no investment in infrastructure is allowed to get the same subsidy in this fashion, the result is a gold-plated waste of taxpayer dollars.”
The universal service high-cost fund will “spiral completely out of control” if the FCC grants a Hawaiian Telecom waiver petition, the National Telecommunications Cooperative Association said in reply comments. The carrier disagreed, saying “special circumstances” justify its exemption from usual measurement methods used to set a non- rural local incumbent carrier’s USF support. Even if USF measurement methods need an overhaul, opponents said, it should come in three proposed rulemakings now before the FCC.
FCC Chairman Kevin Martin said he didn’t delay FCC action on a Universal Service Fund cap or broader USF reform. Martin said a proposed cap is before commissioners but “I haven’t gotten signals from the commissioners that they're willing to end up moving forward.” For a second month, Martin detailed in a meeting with reporters all items on which he seeks votes (CD March 4 p1) at the next monthly meeting, more advance notice than has been agency practice.
A federal court declared it “unlawful” for Nebraska to force Vonage to pay into a state universal service fund. The U.S. District Court for Nebraska slammed the Nebraska PSC with a preliminary injunction, saying the PSC’s “authority to regulate the nomadic interconnected VoIP service provided by [Vonage] is preempted by the FCC, and Vonage need not comply with the [Nebraska USF order].” The order applies only to Nebraska, but will “send a signal” to other states, said Stifel Nicolaus analyst David Kaut.
NASHVILLE -- The FCC should give states clear jurisdiction to set rates for unbundled network elements provided under section 271 of the Telecom Act, state regulators said on a CompTel panel Tuesday. States are the “most capable government entities to protect consumers,” said Arizona Corporation Commissioner Kris Mayes. States are closer to the people and know the competitive environment within their boundaries better than the FCC, agreed Tennessee Regulatory Authority Chairman Eddie Roberson. “I understand the justification for [federal] preemption, and maybe in some cases it’s appropriate, but I think that we need to go very slowly in that area.”
The Florida Public Service Commission stripped competitive landline reseller Vilaire Communications of its state operating authority, saying it filed false claims for universal service subsidies. Vilaire was an AT&T reseller specializing in service to low-income customers who qualified for Lifeline and Link Up service. The PSC said it acted because routine audits discovered the Washington-based company"falsely obtained” $1.3 million in federal Lifeline and Link Up subsidies since August 2006 through double- dipping in the federal universal service fund, and was charging customers an E-911 fee 50 percent higher than state law allowed. The PSC said Vilaire would receive resale universal service credit from AT&T for each Lifeline and Link Up customer. The PSC said Vilaire then submitted claims directly to the federal USF for those same customers, in effect getting paid twice for each customer. The PSC said Vilaire also filed subsidy claims for access lines that didn’t exist, and charged a 75 cent E-911 fee when state law caps such fees at 50 cents. The PSC assigned Vilaire’s customers to AT&T until they choose another local provider and said it would refer its universal service findings to federal authorities.
The FCC cleared T-Mobile’s $2.4 billion acquisition of Suncom Wireless, saying in an order that the merger won’t hurt competition. T-Mobile and Suncom expect the merger to close this month instead of in April, as they had predicted, they said. Unlike its handling of other mergers, the FCC didn’t impose a Universal Service Fund cap.
Congress should pass legislation regulating wireless customer service policies to make industry practices uniform, said Verizon Executive Vice President Tom Tauke in a briefing with reporters Monday. He praised broadband mapping legislation that would create a nationwide database measuring the level of broadband deployment throughout the nation. The effort could help increase access in rural areas, he said.
A “deep need for fundamental reform” of the Universal Service Fund should inspire action on the “practical” proposals by the Federal-State Joint Board on Universal Service, FCC Commissioner Deborah Tate said at a Federalist Society forum Tuesday. A USF revamp is an “overarching public policy issue” that isn’t likely to make one of David Letterman’s top ten lists, but it “probably should because it affects everyone,” Tate said. She co-chairs the joint board, which issued recommendation in November. “We just need to get on with it,” she said.