The GOP overcame Democratic opposition to FCC process reform proposals, approving two bills Wednesday in the House Communications Subcommittee. On a party line vote, the subcommittee voted 14-9 on HR-3309, which requires rulemaking shot clocks, cost-benefit analyses and a variety of other process changes. However, Democrats supported HR-3310, a bill that would consolidate many FCC reports and eliminate others. The subcommittee approved that bill by voice vote but said more work needs to be done before the next markup in the full committee.
The telecom world largely responded cautiously as the FCC on Thursday adopted its Universal Service Fund and intercarrier compensation regime changes. But telecom officials and observers predicted lawsuits would begin pouring in after the 400-plus page order is published and digested. Meanwhile, the order itself hadn’t been finished, an FCC official told us. Staff were continuing to incorporate edits agreed upon by the commissioners late in the process but before the vote, and the order won’t be ready for release until at least the end of next week, the official said. Less-substantive changes are also still being made.
The AT&T/T-Mobile deal, spectrum bills and controversy over possible GPS interference drove communications industry lobbying in Q3, said quarterly lobbying disclosure reports due Thursday. Most telecom, cable and Internet companies increased their spending from Q3 2011. Public safety continued its high level of spending as Congress moved closer to decide on providing money and possibly spectrum for a national network. Google continued to increase its Washington presence, spending more than T-Mobile and Sprint Nextel combined last quarter.
FCC Chairman Julius Genachowski’s proposed universal service order lacks a “clear vision or roadmap,” leaders of the largest rural telecom associations said in meetings with FCC staff last week. Leaders from OPASTCO, NTCA, the Western Telecom Alliance and the National Exchange Carrier Association, along with executives from rural telcos, said the proposed overhaul isn’t comprehensive enough. “Such ambiguity, together with the imposition of new near-term constraints and the overhang of additional constraints or reductions in support to be considered in a further notice of proposed rulemaking, would only chill investment by RLECs and deter lenders and outside investors by perpetuating regulatory uncertainty,” the rural leaders said, according to an ex parte notice posted on docket 10-90.
FCC Chairman Julius Genachowski’s proposed universal service order would raise speed standards to 6 Mbps down/1.5 Mbps up, prune the so-called “right of first refusal” for incumbents, cut down the $2.2 billion set-aside for price cap carriers and reduce the transition time for rate-of-return carriers from 10 years to five, telecom and FCC officials told us Wednesday.
FCC Chairman Julius Genachowski offered reassurance Thursday, in a speech at FCC headquarters as he prepared to circulate the FCC’s version of Universal Service Fund and intercarrier comp overhaul, most likely late Thursday evening. Genachowski’s speech was short on details on how his proposal differs from plans already before the commission, particularly the ABC plan. Instead, he reassured consumers they have nothing to fear and that the proposed reforms will, in the long run, drive down the size of their monthly phone bills.
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).