Of the dozens of comments filed this week in response to the FCC’s rulemaking on USF contribution reform, there was little agreement about whether to stick with a revenue-based system for assessing contribution fees, to move to a system that uses connections or numbers, or even whether to assess fees on broadband service. The only universal sentiment that might be teased out of the plethora of comments filed is that, as AT&T put it, the current system is “dysfunctional.” Carriers differed, but generally supported a modified revenue-based system, while VoIP providers preferred a connections-based system.
The FCC’s plans for special access reform became a prominent issue during a House Communications Subcommittee hearing Tuesday where members queried the commissioners on a broad spectrum of regulatory issues. Chairman Julius Genachowski conceded that the current framework for special access is “not working” but said the commission lacks the necessary data to determine how exactly it should be reformed.
Special access reform and FCC Chairman Julius Genachowski’s initial push for a vote on an order rejecting AT&T and Windstream pricing flexibility petitions are expected to be key areas for questions July 10 when commissioners are scheduled to appear before the House Communications Subcommittee for an oversight hearing. Other likely topics include USF/intercarrier compensation reform, progress on a voluntary incentive auction of broadcast spectrum and other spectrum issues, the Verizon Wireless/cable AWS deals and privacy regulations, said government and industry officials.
House appropriators voted to cut FCC FY13 funding 5 percent to $323 million, during an Appropriations Committee markup Wednesday. The bill, which now awaits consideration on the House floor, gives the FCC $24 million less funding than the agency’s FY13 request of $347 million. The committee removed a provision that would have prevented the FCC from implementing its requirement for broadcasters to post political file information online.
The FCC Wireline Bureau Thursday granted four petitions seeking temporary waivers of a June 1 deadline to implement new Lifeline eligibility rules (http://xrl.us/bm9yxb). The bureau gave USTelecom a six-month extension for 13 of the states indicated in its petition, as well as the eligible telecom carriers in those states that rely on the state to sign someone up for Lifeline. It also granted extensions for California to transition to a new third-party vendor and enable collection of partial Social Security information and dates of birth; and to Oregon and Colorado, which need to change their state laws to reflect new federal rules.
Two months after the FCC’s declaratory ruling to “remind” carriers about the longstanding prohibition on traffic restriction, call completion problems aren’t getting any better, several rural carriers and state public utility commissioners told us. Call completion will remain a problem until the FCC actively enforces rules already on the books, they said, stressing the inability of state commissions to deal with problems that cross state lines. According to a survey by network and infrastructure company Anpi Zone presented Thursday at the “IP Solutions” conference in Indianapolis, more than 60 percent of ILEC and CLEC respondents said call-quality problems have either not improved or gotten worse since the declaratory ruling.
A bipartisan group of 19 senators said the FCC should “immediately act” to remedy the group’s concerns over diminished rural communication network investment in the aftermath of October’s USF/intercarrier compensation (ICC) order, said a letter sent Tuesday to Chairman Julius Genachowski. Warning of “unintended consequences,” the senators requested a formal FCC clarification that the order “will not be implemented in a manner that perpetuates unintended outcomes."
Work at the FCC is intensifying on changing the Lifeline program that funds phone service for poor people, commissioners from both parties said Friday. A new draft of the Lifeline order circulated Tuesday night, prompting Commissioner Robert McDowell to return to Washington from a World Radiocommunications Conference in Geneva, he noted. Both McDowell and Commissioner Mignon Clyburn told a panel at the Minority Media and Telecom Council conference that the order tries to address waste and other inefficiencies in the subsidy program. Clyburn voiced support for the idea of broadband pilot tests, while McDowell said increases in one part of the Universal Service Fund mean all phone customers must pay more in USF fees unless there are other cuts.
Almost three months after the FCC approved a Universal Service Fund/intercarrier compensation reform plan, major industry players continue to seek significant changes. Comments were due last week on a further rulemaking notice approved as part of the order. How USF dollars ultimately will be divided as the fund is reconfigured to primarily pay for broadband is the key question addressed in most filings. They show that the FCC still has a huge job ahead as it continues to tackle changes to the USF. Numerous petitions for reconsideration have been filed in response to the Oct. 27 order. A second round of comments focusing on intercarrier compensation issues is due Feb. 24. Next week, the commission will begin to tackle Lifeline reform. Also looming are likely changes to the contribution side of USF.
The FCC can expect to be flooded with petitions to reconsider its Universal Service Fund reforms (CD Oct 28 p1), telecom officials said and the public record showed. Petitions were expected from nearly every sector of the telecom industry, from state regulators to rate-of-return carriers, several telecom officials said. The commission is drafting a sua sponte -- of its own accord -- reconsideration in an effort to head off one of the thorniest issues in the docket -- whether local rates on local traffic exchanged between wireless and wireline companies should be subject to bill-and-keep immediately, FCC and telecom officials told us.