A group of rate-of-return regulated rural local exchange carriers wants broadband access for rural and urban areas on similar conditions, rates and terms within USF budget parameters, it told the FCC. The Small Company Coalition, which has described itself as a national group of rural telecom and broadband providers (http://bit.ly/1nC5EkH), asked the agency to avoid unfunded mandates or retroactive rulemaking. It said “voice traffic will never go away completely,” as it declines at a 5-15 percent rate annually and “networks are not being used less, but instead are being used more than ever,” in an attachment (http://bit.ly/1jLisUo) to a coalition letter to the commission posted Monday in docket 10-90 (http://bit.ly/1o08FxY). “IP and bandwidth is replacing TDM and voice traffic at an alarming rate.” The coalition said its proposal would work with one from ITTA, a group of mid-sized telcos, and rate-of-return companies could choose which model works best. The coalition said it has “refined and improved” its plan after getting feedback from industry stakeholders and to reflect issues raised in the FCC Connect America Fund order (WID June 12 p6). The materials didn’t identify the members of the coalition.
FCC Chairman Tom Wheeler is trying to line up votes in favor of E-rate reform for action at the agency’s July 11 open meeting. It’s unclear whether Wheeler will be able to get Republican support for the changes, dedicating $1 billion to Wi-Fi in 2015, industry and agency officials said Tuesday. To that end, Wheeler is emphasizing that his proposal does not increase the E-rate budget, but relies on $2 billion commission staff recently found has been set aside for E-rate but never spent.
FCC Chairman Tom Wheeler is trying to line up votes in favor of E-rate reform for action at the agency’s July 11 open meeting. It’s unclear whether Wheeler will be able to get Republican support for the changes, dedicating $1 billion to Wi-Fi in 2015, industry and agency officials said Tuesday. To that end, Wheeler is emphasizing that his proposal does not increase the E-rate budget, but relies on $2 billion commission staff recently found has been set aside for E-rate but never spent.
The FCC unanimously voted to make changes to the Connect America Fund (CAF) framework, at its meeting Wednesday. As expected (CD Dec 18 p2), the much-maligned quantile regression analysis formula is out, although what QRA will be replaced with remains an open question. Rural groups commended the commission for finally doing away with a USF disbursement regression formula that caused uncertainty and wreaked havoc on rural broadband investment. Rural groups are also pleased about a further NPRM that proposes a standalone broadband fund for rate-of-return carriers, which would provide support to rural telcos even if their customers don’t want to purchase bundled phone service.
The FCC unanimously voted to make changes to the Connect America Fund (CAF) framework, at its meeting Wednesday. As expected, the much-maligned quantile regression analysis formula is out, although what QRA will be replaced with remains an open question. Rural groups commended the commission for finally doing away with a USF disbursement regression formula that caused uncertainty and wreaked havoc on rural broadband investment. Rural groups are also pleased about a further NPRM that proposes a standalone broadband fund for rate-of-return carriers, which would provide support to rural telcos even if their customers don’t want to purchase bundled phone service.
FCC Chairman Tom Wheeler is considering adding net neutrality to the agenda for the May 15 FCC meeting, creating what could be a truly epic open meeting, industry and FCC officials told us. The FCC is already poised to vote then on service rules for the incentive auction as well as revised spectrum aggregation rules (CD April 21 p1). The next steps on net neutrality for the FCC are likely a notice of proposed rulemaking (NPRM) on revised rules, consistent with U.S. Court of Appeals for the D.C. Circuit’s Jan. 14 decision in Verizon v. FCC.
FCC Chairman Tom Wheeler is considering adding net neutrality to the agenda for the May 15 FCC meeting, creating what could be a truly epic open meeting, industry and FCC officials told us. The FCC is already poised to vote then on service rules for the incentive auction as well as revised spectrum aggregation rules ( WID April 21 p8). The next steps on net neutrality for the FCC are likely a notice of proposed rulemaking (NPRM) on revised rules, consistent with U.S. Court of Appeals for the D.C. Circuit’s Jan. 14 decision in Verizon v. FCC.
The Independent Telephone and Telecommunications Alliance proposed an alternative regulatory framework for rate-of-return companies, in a filing Thursday (http://bit.ly/1gHLzHh). The voluntary plan would address “some of the concerns associated with eventually moving to model-based support by providing stability, certainty, and an adequate transition period,” ITTA said. In Phase I of the two-phase plan, USF support would be frozen at current levels while participants continue to implement intercarrier compensation (ICC) rate reductions pursuant to the framework in the 2011 USF/ICC Order. They would then move to a price cap-like structure with respect to regulation of rates for special access service. In Phase II, which would begin after the Connect America Cost Model has been modified “to reflect the unique circumstances of [rate-of-return] companies,” participants would accept model-based support and assume service and public interest obligations, in the same way as price cap carriers under CAF Phase II, ITTA said. “We think it’s a noteworthy proposal that should move the industry forward,” ITTA President Genny Morelli told us. “We're hopeful that others will feel the same way.” The primary benefit of the plan is “knowledge of your revenues,” said Trey Judy, director-regulatory at the Hargray Communications Group. “We get stability of revenues, we know the revenues that we will be able to count on to build out broadband,” he said. The plan will also make it a more feasible and easier process to acquire funding, Judy said. Western Telecommunications Alliance Vice President-Government Affairs Derrick Owens said he’s sending ITTA’s proposed plan to his policy committee and plans to discuss it with the committee early next week. “I know I have some companies who are interested in model-based support” or are thinking about what would happen,” Owens told us. But “right now the model that’s out there -- the CAF Phase II model -- doesn’t work for rate of return carriers, and so we're going to take a close look at what ITTA proposed.” CAF Phase II doesn’t work because “the inputs just don’t line up with the actual costs for rate-of-return carriers,” he said. “Any type of model that doesn’t focus on actual costs is difficult for us to accept.” From what Owens has seen from the ITTA proposal, “it at least puts something out there that we can talk to our members about,” he said.
It’s not for lack of trying that Congress hasn’t overhauled the Communications Act since 1996. In December, House Commerce Committee Chairman Fred Upton, R-Mich., and Communications Subcommittee Chairman Greg Walden, R-Ore., outlined plans to update the landmark telecom law -- initial stakeholder comments posted online Wednesday (CD Feb 6 p8) (http://1.usa.gov/1dsVahV), hearings and white papers in 2014, a bill in 2015. They are hardly the first lawmakers to say they want to transform the act, which marked its 18th anniversary Saturday. Former staffers and congressional leaders involved in past attempts told us why recent high-profile efforts, such as in 2006 led by Republicans and in 2010 by Democrats, failed to succeed and what those experiences might portend for House Republicans now.
It’s not for lack of trying that Congress hasn’t overhauled the Communications Act since 1996. In December, House Commerce Committee Chairman Fred Upton, R-Mich., and Communications Subcommittee Chairman Greg Walden, R-Ore., outlined plans to update the landmark telecom law -- initial stakeholder comments posted online Wednesday (http://1.usa.gov/1dsVahV), hearings and white papers in 2014, a bill in 2015. They are hardly the first lawmakers to say they want to transform the act, which marked its 18th anniversary Saturday. Former staffers and congressional leaders involved in past attempts told us why recent high-profile efforts, such as in 2006 led by Republicans and in 2010 by Democrats, failed to succeed and what those experiences might portend for House Republicans now.