Open Range Communications filed for bankruptcy Thursday despite receiving the largest loan commitment under the Agriculture Department’s Rural Development Broadband Loan and Loan Guarantee Program. The Rural Utilities Service approved a loan of $267 million for Open Range in March of 2008, under President George W. Bush appointee RUS Administrator Jim Andrew. Open Range owes RUS about $74 million in secured debt, said the company.
The FCC confirmed that Chairman Julius Genachowski will circulate a proposed order that he hopes will lead to reform the universal service and intercarrier compensation regimes. The FCC called a briefing with reporters where agency officials spoke on the condition they not be named and said Genachowski will deliver a speech Thursday laying out some of his proposals. FCC officials declined to discuss specifics in Tuesday’s briefing, set for Thursday at 10:30 a.m. at FCC headquarters, instead reiterating their talking points about why reform was necessary.
The FCC might not adopt any existing plan to revamp the Universal Service Fund in its entirety, state officials said at a webinar by the National Regulatory Research Institute Monday. Even if the commission is to adopt an order for the Oct. 27 meeting, it might not be a final order, said James Cawley, chair of the state member of the Federal/State USF Joint Board.
Rural telcos and state regulators worry the pending universal service and intercarrier compensation regime reforms will result in consolidation in their sector. Earlier this week, ex-FCC commissioner Harold Furchtgott-Roth accused the agency of pushing rural telcos toward consolidation in the Universal Service Fund rulemaking notice (CD Sept 26 p13).
Cable advocates have taken their fight against the right-of-first-refusal provisions in America’s Broadband Connectivity plan to Capitol Hill, hoping to keep Congress from supporting the incumbent-backed plan, NCTA Executive Vice President James Assey told us Wednesday. President Michael Powell and Comcast/NBC Universal Washington President Kyle McSlarrow have been pressing their cases on the Hill. The goal is to keep legislators from signing incumbent-circulated letters to the FCC supporting the ABC plan, he said.
A group of consumer advocates and public officials urged the FCC to reject the incumbent-backed America’s Broadband Connectivity plan and the rural “consensus framework” for universal service reform. In a joint letter posted as an ex parte notice to docket 10-90 and organized by the National Consumer Law Center and the Utility Reform Network, the advocates said industry’s reform proposals should be “flatly rejected” (http://xrl.us/bmdmo8).
An influx of freshmen in the 112th Congress forced the telecom industry to increase education efforts in 2011, industry lobbyists said in interviews. This year there are 13 freshman senators and 93 new House members. As a result, telecom lobbyists have had to spend more of their time teaching the nuts and bolts of major telecom issues like spectrum and Universal Service Fund reform, lobbyists said.
The Native Telecom Coalition for Broadband urged the FCC to adopt its earlier proposal for a Tribal/Native Broadband Fund as part of changes to the Universal Service Fund. “The proposed ‘Native American’ USF program holds the promise of finally delivering many of the commitments embedded or implied in treaties and acts of Congress that have been languishing for over a century,” the group said in a filing at the commission (http://xrl.us/bmbgs3). “A broadband communications platform will provide the 21st century foundation that is needed to work toward Native American participation in socio-economic advancement, while enhancing their ability to preserve and pass on to future generations longstanding cultural traditions and values."
The Native Telecom Coalition for Broadband urged the FCC to adopt its earlier proposal for a Tribal/Native Broadband Fund as part of changes to the Universal Service Fund. “The proposed ‘Native American’ USF program holds the promise of finally delivering many of the commitments embedded or implied in treaties and acts of Congress that have been languishing for over a century,” the group said in a filing at the commission (http://xrl.us/bmbgs3). “A broadband communications platform will provide the 21st century foundation that is needed to work toward Native American participation in socio-economic advancement, while enhancing their ability to preserve and pass on to future generations longstanding cultural traditions and values."
CTIA questioned whether the $300 million dedicated annually to support of mobile broadband services by the USTelecom-brokered agreement on Universal Service Fund and intercarrier compensation regime reforms is enough to meet the nation’s needs. CTIA filed comments late Wednesday on the plan and USF overhaul. (See related story in this issue.) “CTIA applauds the recognition of the need for on-going support for mobile services, however, this funding level appears insufficient to meet the needs of mobile broadband consumers in high-cost areas,” the group said (http://xrl.us/bmbduq). “This is particularly true given that CTIA submitted a cost study in 2008 demonstrating that it would require an investment of approximately $22 billion to bring ubiquitous 3G service to unserved areas.” As it decides the proper allocation to wireless, the FCC should “take account of the fundamental nature of mobile networks, which must be available wherever Americans live, work, and travel,” CTIA said.