As 2012 draws to a close, federal agencies were preparing to dramatically reduce their expenses, a spokesman for the National Treasury Employees Union (NTEU) said last week while lawmakers and the White House struggled to avoid a Wednesday funding sequester deadline. The Office of Management and Budget and Office of Personnel Management told federal union groups Friday that “while they are still hopeful that a deal can be reached ... they are taking prudent action so agencies can be prepared for this contingency,” said NTEU President Colleen Kelley in a statement. NTEU represents FCC and Commerce Department employees, among others. Spokespeople for OMB, FCC, FTC, NTIA, departments of Justice and Homeland Security, U.S. Patent and Trademark Office and RUS did not comment.
The FCC mass-media agenda may be light in 2013, compared with work on USF and spectrum issues that will take up much of the eighth floor’s and many bureaus’ and offices’ attention, commission and industry officials predicted in interviews last week. They said Media Bureau staff may find the new year sharpens their focus on spectrum, with Chairman Julius Genachowski hoping to finish an order for the voluntary incentive auction by the end of next year. He would need rules for how to change the channels of stations that don’t agree to sell all or some of their frequencies.
Oct. 29 FCBA Intellectual Property Committee brown bag lunch on Internet Radio Fairness Act, 12:15 p.m., Wilkinson Barker, 2300 N St. NW, Suite 7 -- http://xrl.us/bimfn6
LAS VEGAS -- Competitive Carriers Association officials warn that unless the FCC approves a mandate requiring that all devices built for lower 700 MHz spectrum work across the band, CCA members are unlikely to make much of a play in the upcoming incentive auction of broadcast spectrum. CCA officials cite what they say is a statistic that shows why an interoperability mandate is critical -- members of the group invested some $2 billion in the 700 MHz auction and most to date have been unable to roll out service.
The FCC’s budget for salaries and expenses would be cut 8.2 percent, equal to roughly $28 million, if a Congress doesn’t act to stop sequestration before Jan. 2, the White House said. The news came in the administration’s much anticipated sequestration report Friday, which detailed sharp across-the-board cuts to the budgets of most federal agencies. An industry group and a union representing FCC employees said the report shows the negative impact that sequestration will have on federal employees, private industry and the economy as a whole.
Higher education is ready to work with the commission on a connections-based contribution system, or an adjusted revenues-based system, the nonprofit association Educause told FCC officials (http://xrl.us/bnodj9). Under a numbers-based regime, higher education would pay up to 20 times more in USF fees than under the current revenues-based system, Educause said. Without end-users from whom to recover these additional fees, the added funds would ultimately have to come from staff salaries, and reduced student services, the group said.
The FCC faces no shortage of opinions on how best to move forward with its reform of the Rural Health Care Program, as telecom associations, healthcare providers and states offered suggestions in comments in docket 02-60 last week. Groups widely supported the program, and discussed the importance of exercising fiscal responsibility, but differed on whether the funds should be used for infrastructure buildout. Proposed reporting requirements also attracted disagreement.
FCC Commissioner Robert McDowell will continue to push for USF contribution reform, though he still has an “open mind” about steps to take next, he said in an interview. McDowell has long championed taking on the contribution side of USF (CD Jan 9 p1). The FCC approved an order in October addressing the distribution side of USF and an order on the USF’s Lifeline program in January. In May, the FCC released a 182-page further notice of proposed rulemaking on contribution reform.
Representatives of the National Telecommunications Cooperative Association discussed “ongoing concerns” on the “transparency, accuracy, and predictability of regression analysis-based caps on universal service fund support,” in a meeting with aides to Commissioners Robert McDowell, Ajit Pai and Jessica Rosenworcel. “NTCA raised the need to address these issues consistent with the Applications for Review filed by NTCA and many others,” the group said in an ex parte filing (http://xrl.us/bnmn8d). “NTCA further asserted that the Commission’s broadband policy objectives can only be achieved through clear and well-tested ‘business rules’ that provide sufficient support and enable company managers to predict with a reasonable degree of certainty what investments and operations will be recoverable (or unrecoverable) through USF support prospectively. NTCA explained that many of the necessary and appropriate changes can be achieved in short order without affecting USF ‘budgetary’ objectives or creating any technical or administrative concerns, and expressed commitment to working with the Commission to address these issues."
In the last two years, he has perhaps submitted more comments to the FCC than any other party. He has chimed in on dozens of dockets, from media ownership to USF. He has no law degree or experience in working in the telecom industry. So far this month, he has submitted more than 300 comments.