CHICAGO -- The FCC’s overhaul of the Universal Service Fund and intercarrier compensation system may take a little longer than had previously been anticipated, an aide to Chairman Julius Genachowski said at the Cable Show in Chicago. Finishing an order on the subjects may take until the fall, said Sherrese Smith, who advises Genachowski on media issues. “I'm only talking about a month or two delay,” not a longer period of time, she told us during a Q-and-A Wednesday. She also said an item on program carriage will be out soon.
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The House Commerce Committee is content to let the FCC take a first run at the Universal Service Fund overhaul, a committee spokeswoman told us Friday. “We are waiting to see what the FCC decides to do before we make a decision on whether legislation is necessary,” the spokeswoman said. Congress’ tacit approval of the FCC’s reform schedule had been expected (CD Feb 8 p1) but Friday’s statement comes amidst a blitz by rural telcos trying to get the Hill to intervene in the USF proceedings (CD May 25 p8). On the Senate side, Commerce Committee Chairman Jay Rockefeller, D-W.Va. has said D-block legislation is his “highest priority” (CD Feb 17 p4).
Industry remains divided on how best to fix the Universal Service Fund and intercarrier compensation regimes, with a few months left before an FCC-promised deadline. Despite broad agreement that USF and intercarrier comp need fixing, reply comments show deep divisions over such questions as how quickly to transform to an all-IP network, how to treat VoIP service and the role of satellite and wireless technologies. “There is no doubt that the current universal service fund … and intercarrier compensation regimes are not sustainable in light of market and technological changes,” the Independent Telephone & Telecommunications Alliance said. “The comments show that there is no industry consensus in favor of the reforms outlined in the Notice or any other plan to promote broadband deployment to unserved areas.” The replies were posted in docket 10-90.
DALLAS -- The prospect of wireless security regulation is “changing the basic incentives of many management structures,” said Sam Curry, RSA chief technology officer. RSA is the security division of storage hardware and data recovery firm EMC. But officials at the TIA convention said that may not be happening quickly enough as malware for Android operating systems, for example, proliferates with a compounded growth rate of 400 percent monthly. “Security is a dirty word at many companies,” Curry said. “The language of risk at the C-level and elsewhere is not always fully developed.” Chief financial officers see security as just a cost to be managed, said Phil Attfield, CEO of Sequitur Labs. He said they need to start seeing security as a “profit center."
Staff in the office of FCC Commissioner Meredith Baker was lobbied on more than a dozen occasions by Comcast, the NCTA, cable company rivals, nonprofit groups and others as she considered a job offer at Comcast, agency records show. Since April 18, when Baker privately recused herself from voting on anything at the FCC (CD May 16 p7), the lawyers who advise her also were visited by executives of AT&T, the CTIA, News Corp., Verizon and other companies and public interest groups. Baker’s not the first FCC member to directly leave for a large company regulated by the agency, though it’s been decades since that’s believed to have last occurred, said several who have long watched the commission.
Staff in the office of FCC Commissioner Meredith Baker was lobbied on more than a dozen occasions by Comcast, the NCTA, cable company rivals, nonprofit groups and others as she considered a job offer at Comcast, agency records show. Since April 18, when Baker privately recused herself from voting on anything at the FCC (WID May 16 p9), the lawyers who advise her also were visited by executives of AT&T, the CTIA, News Corp., Verizon and other companies and public interest groups. Baker’s not the first FCC member to directly leave for a large company regulated by the agency, though it’s been decades since that’s believed to have last occurred, said several who have long watched the commission.
Broadband reclassification is once again haunting the FCC’s proceedings, this time as rural telcos seize on broadband’s Title I status to lobby on Universal Service Fund reforms. The commission elected to take a Title I approach in its net neutrality order (CD Dec 2 p1), but in recent weeks, executives of rural telcos have begun to argue that proposals to roll universal service cash into a Connect America Fund for broadband will raise “a host of legal and practical complications” under Title II (CD May 9 p13).
Small carriers, wireline and wireless, opposed to reverse auctions as part of Universal Service Fund overhaul could be fighting a losing battle in an effort to reverse a move in that direction by the commission. FCC Chairman Julius Genachowski appears to have at least three votes in favor of a controversial reverse auction plan, FCC and industry officials said.
Lobbyists from rural telcos pressed their case for reform of the Universal Service Fund and the intercarrier compensation regime at the FCC last week, the groups said in an ex parte notice posted to dockets 10-90 on Friday. Representatives from OPASTCO, the Western Telecommunications Alliance, National Exchange Carrier Association, NTCA and from Fred Williamson Associates met with Zac Katz, adviser to FCC Chairman Julius Genachowski, Wireline Bureau Chief Sharon Gillett and other staff from the Wireline Bureau. They pushed the reforms in comments in the USF and intercarrier comp dockets (CD April 19 p3), which they said would meet the commission’s objectives of fiscal responsibility, accountability and modernization, “while at the same time preserving the core tenets of a rate-of-return framework that has proven strikingly effective and efficient in enabling substantial rural broadband penetration (and upgrades to existing plant) in recent years at a minimal (3 percent) annualized growth rate in support.” The rurals said their proposal would also avoid “legal and practical complications” around Title II. “Given that the Commission has previously concluded that broadband Internet access services are non-regulated and thus not subject to Title II requirements, a host of legal and practical complications would arise in attempting to identify and address non-regulated costs and revenues without any structure to define the proper accounting of them or to ensure the just and reasonable nature of them -- which, by definition, means they will need to be in some form ‘regulated,'” the lobbyists said in their ex parte notice. It’s “unclear which non-regulated services might be included” in USF reform, but the rural plan “would establish a support mechanism for broadband-capable networks that works within and is entirely consistent with the plain language of Section 254, the Title II regulation of transmission networks, and the Commission’s prior determination to classify broadband Internet access service as a non-regulated service."