Cyren Call CEO Morgan O'Brien’s spectrum proposal largely could solve America’s broadband access problems and deliver a fully interoperable safety network, he said. On a Hill panel at the New America Foundation, O'Brien said Fri. he'd have more details of the proposal Mon. in a filing with the FCC. It will answer questions about how the company can succeed financially serving public and private needs, he said.
Speakers at a NARUC panel on use of reverse auctions as a universal service reform tool said their effectiveness will depend heavily on how the auctions are designed. FCC Chmn. Kevin Martin in March supported the concept as a way to contain universal service fund growth. His idea would make the winning bidder the provider of last resort. For reverse auctions to have a chance to work, speakers said, the auction process must recognize the large cost differences that can exist between locations within the same high-cost area. Brian Stahr, Embarq regulatory economist, said costs can vary by over 400% across a market area, such as between a town or other population concentration and the outlying areas. He said the industry has depended on low-cost downtown lines implicitly subsidizing high-cost outlying areas, but competition is causing that subsidy source to disappear. He said explicit subsidies through the USF aren’t working either, because support is based on a statewide average. Support needs to be more “granular,” he said, such as by census block: “Competitive bids must truly reflect costs of the truly high-cost areas.” Dennis Weller, Verizon chief economist, supported the idea of targeting support to the areas where it’s really needed: “The current system isn’t rational nor sustainable.” He said auctions in areas with multiple ETCs could establish rate models for setting support levels in areas not auctions. He said universal service is “essentially a government procurement process, and bidding is how government procures most everything.” Scott Reiter, NTCA industry affairs dir., disputed the wisdom of reverse auctions, calling them “a big blind leap into the unknown.” He said adoption of auctions won’t address how the universal service fund came to be unbalanced in the first place: “Auctions may be worth a look, but they aren’t the fundamental reform that’s needed.”
Wireless companies that operate in rural areas have formed the Wireless Across America coalition to work for continued Universal Service Fund support for wireless companies. The group plans to “tell Congress to safeguard USF funding for rural wireless service [to assure] the security and economic prosperity of countless rural communities.” The members are the Rural Cellular Corp., Alltel, Dobson, SunComm, Corr Wireless, Rural Cellular Assn. and Bluegrass Cellular.
Rural carriers are raising red flags about what could happen to some of the smallest carriers if the FCC institutes reverse auctions to make USF distribution more efficient. Comments varied widely on this and other proposals to restructure the distribution side of USF.
E-rate and disability constituencies are solid in support of HR-5252, representatives of teachers, librarians and special needs consumers said Fri. on an Alliance for Public Technology (APT) panel. Speakers held out little hope the bill will pass before a lame duck session, but declared it would improve on current policy.
More interim changes to the Universal Service Fund (USF) contributions system simply will delay reform, VoIP providers and others told the FCC in comments filed Wed. The FCC in a June order making interim fixes (CD June 22 p1), asked if more temporary changes were due. Commenters told the FCC not to waste time on interim fixes but to replace the revenue- based system.
The Senate shut down for Aug. recess early Fri. without passing the telecom bill (HR-5252), despite Commerce Committee Chmn. Stevens’ (R-Alaska) week-long drive to round up the 60 votes needed to avoid a filibuster. On Tues. Steven was somewhat optimistic, he told reporters after the Republican policy lunch. “I think I've got them, but I'm not sure yet.”
The Senate shut down for Aug. recess early Fri. without passing the telecom bill (HR-5252), despite Commerce Committee Chmn. Stevens’ (R-Alaska) week-long drive to round up the 60 votes needed to avoid a filibuster. On Tues. Steven was somewhat optimistic, he told reporters after the Republican policy lunch. “I think I've got them, but I'm not sure yet.”
A collection system for the Universal Service Fund (USF) based on telephone numbers gained the support of a new telecom alliance called the USF by the Numbers Coalition. The coalition - made up of groups such as NCTA, CTIA and USTelecom and its members AT&T and BellSouth -- held a news conference call Tues. to “set the story straight” on misconceptions about the plan, it said.
Close votes on key amendments dealing with net neutrality and buildout requirements signal a tough fight ahead on the Senate floor for the Senate telecom bill (HR- 5252), lobbyists and industry sources said. Senate Commerce Committee Chmn. Stevens (R-Alaska) has acknowledged the difficulty he faces and said at the end of Wed.’s markup that he’s considering introducing a slimmed-down bill.