The FCC approved an order letting schools and libraries lease dark fiber for broadband use, community use of schools’ broadband networks after hours and tying the E-rate cap to inflation. Indexing E-rate to inflation, as had been expected (CD Sept 8 p1), may mean the $2.25 billion annual cap will be raised for the first time in its history. The inflation measure caused Republican Commissioners Meredith Baker and Robert McDowell to part ways with their Democratic colleagues. Baker concurred on inflation and McDowell dissented. Both said they thought the Universal Service Fund -- of which E-rate is a part -- requires comprehensive reform.
There’s no reason for the FCC to delay approval and release of an order that would allow states to require providers of nomadic VoIP service to contribute to state universal service funds, NARUC said in an FCC filing. Some providers seek a rulemaking to further delay their “obligations” to pay -- as their competitors pay -- to support state programs, NARUC said. They have raised as an issue -- “the unlikely scenario that one or more consumers -- in theory -- might actually pay into two state programs,” it noted. Currently, at least one state requires the in-state USF revenue identification to be based on billing addresses and at least one other State requires revenue identification to be based on primary service address. However, this “unlikely scenario” provides no basis for delay or a drawn out rulemaking, NARUC said, saying there’s no evidence in the record that this circumstance has actually occurred or “even likely to occur.” The group cited Sandy Reams, managing auditor for the Kansas Corporation Commission, saying Kansas is the only state currently assessing nomadic interconnected VoIP providers for state USF purposes. So no conflict between the revenue-identification methods currently exists. Reams also noted once the FCC issues an order and Nebraska and New Mexico implement the assessment on providers of nomadic interconnected VoIP service, it will be rare for a carrier to be assessed on the same revenue by two different states. The nomadic carriers have raised “an unsupported allegation as a fact” -- that a significant quantum of customers may be subject to overlapping state assessments -- as a defense to complying with what the FCC has found to be clear Congressional intent that Vonage contribute to state programs, NARUC said. Vonage (or other nomadic carriers) are the only parties to this proceeding in a position to demonstrate if the claim is true, it said. Vonage has provided no evidence a single customer in any state is in a position to be actually harmed based on the methods suggested by the Nebraska and Kansas commissions (or any other actual State commission rule or proposed rule), NARUC said. Additionally, if it actually does happen, the states will assure the affected customer “is made whole.” Two of the states involved have already specified, in the unlikely case that such a circumstance rises, they will work together to assure the consumer is not harmed. “In the unlikely event that a double assessment actually does occur,” the states can provide a credit to a carrier that is assessed twice on the same revenue,” it said. Meanwhile, states have successfully worked together on the issue for wireless providers, and that’s strong evidence that to the extent that any double billing issue arises, it will be readily resolved by the states’ collaboration, NARUC said.
There’s no reason for the FCC to delay approval and release of an order that would allow states to require providers of nomadic VoIP service to contribute to state universal service funds, NARUC said in an FCC filing. Some providers seek a rulemaking to further delay their “obligations” to pay -- as their competitors pay -- to support state programs, NARUC said. They have raised as an issue -- “the unlikely scenario that one or more consumers -- in theory -- might actually pay into two state programs,” it noted. Currently, at least one state requires the in-state USF revenue identification to be based on billing addresses and at least one other State requires revenue identification to be based on primary service address. However, this “unlikely scenario” provides no basis for delay or a drawn out rulemaking, NARUC said, saying there’s no evidence in the record that this circumstance has actually occurred or “even likely to occur.” The group cited Sandy Reams, managing auditor for the Kansas Corporation Commission, saying Kansas is the only state currently assessing nomadic interconnected VoIP providers for state USF purposes. So no conflict between the revenue-identification methods currently exists. Reams also noted once the FCC issues an order and Nebraska and New Mexico implement the assessment on providers of nomadic interconnected VoIP service, it will be rare for a carrier to be assessed on the same revenue by two different states. The nomadic carriers have raised “an unsupported allegation as a fact” -- that a significant quantum of customers may be subject to overlapping state assessments -- as a defense to complying with what the FCC has found to be clear Congressional intent that Vonage contribute to state programs, NARUC said. Vonage (or other nomadic carriers) are the only parties to this proceeding in a position to demonstrate if the claim is true, it said. Vonage has provided no evidence a single customer in any state is in a position to be actually harmed based on the methods suggested by the Nebraska and Kansas commissions (or any other actual State commission rule or proposed rule), NARUC said. Additionally, if it actually does happen, the states will assure the affected customer “is made whole.” Two of the states involved have already specified, in the unlikely case that such a circumstance rises, they will work together to assure the consumer is not harmed. “In the unlikely event that a double assessment actually does occur,” the states can provide a credit to a carrier that is assessed twice on the same revenue,” it said. Meanwhile, states have successfully worked together on the issue for wireless providers, and that’s strong evidence that to the extent that any double billing issue arises, it will be readily resolved by the states’ collaboration, NARUC said.
Sorenson was alone seeking one compensation rate for all video relay service providers under the interstate Telecom Relay Service fund, in comments at the FCC last week. Sorenson is the biggest VRS provider and is paid the least under the current system. Responding to a notice of inquiry about taking a “fresh look” at the VRS program and reducing fraud, Sorenson’s rivals and consumer groups representing the deaf urged the FCC to maintain the current tiered approach, with some minor changes.
Wireless has already faced deep cuts in universal support and the goal of the FCC now should be to encourage more deployment of mobile broadband, CTIA said in replies on an inquiry and rulemaking on changes to the high-cost universal service program. As a result of the 2008 cap on support for competitive eligible telecom carriers, wireless carriers and other CETCs have already lost $800 million in funding, the group said. The notices follow up on recommendations in the National Broadband Plan that the Universal Service Fund be restructured to pay for broadband.
Revamping the Universal Service Fund should be an FCC priority, said Senate Commerce Committee Chairman Jay Rockefeller, D-W.Va. In a letter Tuesday to the commissioners, he asked the agency to “proceed with urgency” to fix problems in rural communications infrastructure exposed by the recent mining disaster in his home state. Rockefeller didn’t mention comprehensive USF legislation introduced July 22 by House Communications Subcommittee Chairman Rick Boucher, D-Va., and Rep. Lee Terry, R-Neb. (CD July 26 p3).
AT&T explained in a blog post why it’s the leading recipient of Universal Service Fund money, even as it advocates an overhaul of the program. News coverage suggesting a contradiction misses the point, wrote AT&T Vice President Hank Hultquist. “AT&T’s wireline footprint covers about 30% of the country’s rural homes, yet AT&T receives about 4% of the total USF high cost support for it doing so,” he said. “A group of smaller companies, which collectively cover about 38% of the country’s rural homes, receive almost 60% of the total USF high cost support.” Most of the wireline support that AT&T receives is for work in two states, Mississippi and Alabama, Hultquist said. “I want to be clear that AT&T is not seeking to change the fund so that it would receive support similar to that received by these smaller companies,” he said. “What AT&T has advocated for is a system where support is determined for all providers based on geographic areas relevant to investment decisions."
Rural wireless carriers didn’t endorse but some may be open to Universal Service Fund overhaul legislation by House Communications Subcommittee Chairman Rick Boucher, D-Va., and Rep. Lee Terry, R-Neb. The bill (HR-5828) is backed by major wireline associations, the cable industry and AT&T and Verizon (CD July 23 p1). Some expected a competitive bidding rule to alienate rural wireless carriers that compete for USF dollars as competitive eligible telecommunications carriers. Wireless CETCs have concerns, but believe Boucher and Terry listened hard to all stakeholders and came up with a “solid compromise,” said Rural Telecommunication Group General Counsel Carri Bennet.
The FCC concludes in its sixth broadband deployment report that 14-24 million Americans still can’t get high-speed access, and the immediate prospect for deployment to the unserved Americans is “bleak.” As expected (CD July 19 p1), commission Republicans Robert McDowell and Meredith Baker issued vigorous dissents from the report and its finding that the FCC can’t conclude that broadband is being deployed to all Americans in a “reasonable and timely” manner.
The FCC concludes in its sixth broadband deployment report that 14-24 million Americans still can’t get high-speed access, and the immediate prospect for deployment to the unserved Americans is “bleak.” As expected, commission Republicans Robert McDowell and Meredith Baker issued vigorous dissents from the report and its finding that the FCC can’t conclude that broadband is being deployed to all Americans in a “reasonable and timely” manner.