FairPoint Communications will no longer pay into USF for the wholesale broadband telecom service it plans to take private, said an official for another rural-oriented carrier that has similar plans. "This is really about USF," said Trey Judy, Hargray Communications director-regulatory affairs. "I think other companies are going to follow suit. ... It’s just correcting an inequity that’s been there for a while," he told us, citing cable competitors as not paying into the fund for their broadband offerings. "This puts [rural telcos] on a level playing field." Separately, Republican FCC commissioners recently voiced concern the agency could begin to assess industry broadband revenue in general to pay for USF.
Tariff classification rulings
OXON HILL, Maryland -- FCC Chairman Tom Wheeler called for making a “fresh start” in the business data service market (his new name for special access), starting on April 28 with a Further NPRM and tariff order and moving quickly to a conclusion (see 1604080055) later this year. “Now is the time for action. I assure you that I will treat this issue with the urgency it deserves,” he said at the Incompas Show Monday, drawing applause with the first of several applause lines (prepared remarks here). He said he is counting on Incompas members and others to have the same sense of urgency. Wheeler also defended the FCC's proposal for set-top box competition -- while expressing an openness to modifications -- and its net neutrality rules and oversight.
The FCC portrayed the reclassification of broadband in Chairman Tom Wheeler’s net neutrality proposal as a modernized Title II. But pledges from senior agency officials not to impose traditional Communications Act common-carriage regulations like rate regulation didn't ease the concerns of reclassification’s opponents.
The FCC ramped up pressure on ISPs Wednesday to make certain they are providing customers with accurate information about their services. The agency released an enforcement advisory along with accompanying statements from Chairman Tom Wheeler and acting Enforcement Bureau Chief Travis LeBlanc.
The Iowa Utilities Board did not make any significant changes in its staff report on telecommunications regulation, but it established a roadmap for the IUB going forward, Iowa Telecommunications Association President Dave Duncan told us Wednesday. The staff report (http://bit.ly/HfqPf0), attached to an order to end the IUB’s notice of inquiry, listed some statutory changes to clean up the legislation based on comments and a workshop in September (CD Sept 11 p16), said Duncan. “The IUB addressed some issues that were clearly outdated that needed to be cleaned up,” he said. The IUB played the next steps “close to the vest,” Bret Dublinske, Gonzalez Saggio attorney, told us. Dublinske acted on behalf of several interested parties including Sprint, tw telecom, Cox, Securus and CTIA. “It collectively raises the possibility for rulemakings and what will be teed up in the future, but a lot remains to be seen."
Three Wisconsin companies slammed Transcom Enhanced Service’s petition for rehearing and clarification of the state’s judgment of Halo Wireless Thursday in filings with the Wisconsin Public Service Commission. Transcom had partnered with Halo Wireless as part of a controversial interconnection agreement with AT&T throughout several states. AT&T and other telcos accused Halo of not paying necessary access charges, a view multiple state utility commissions upheld throughout 2012. Halo Wireless was, in proceedings emanating from the agreement, condemned in multiple state utility commissions (CD Aug 2 p8) and ultimately liquidated in July. But its affiliate, 13-year-old, Texas-based Transcom, remains active and continues to fight for reconsideration throughout different states.
Wisconsin Republicans Rep. Mark Honadel and Sen. Rich Zipperer circulated a draft bill that would update the state telecom law. The bill is expected to be introduced soon after the Tuesday deadline for co-sponsorship. Two coalitions fought over the proposed mandate on payment of intrastate access charges on VoIP.
GENEVA -- The U.S., Japan and Taiwan won in a World Trade Organization dispute over European duties as high as 14 percent on some information technology gear covered under the Information Technology Agreement for tariff-free treatment, officials said. About $44 billion in global exports of set-top boxes, LCD panels and multi-function printers is at stake in the agreement. Questions linger over the possible future tariffs on consumer goods that continue to evolve and incorporate communications and other functions.
Maryland’s Public Service Commission will meet Tuesday to discuss a settlement proposal by Verizon on alternative forms of regulation. Verizon said its plan would benefit Marylanders by ordering credits to make up for loss of service and missed appointments, linking price increases and service quality, ending company efforts to recover revenue lost since the commission’s Jan. 1 suspension of Verizon’s 2008 annual price cap filing, reducing the price of overseas calls, paying to promote Tel-Life low-cost phone service programs, and creating a way for disabled and older consumers without other options for 911 to pre-certify for priority repairs. Approval would save the state time, money and uncertainty, a filing for Verizon said. “In particular, the administrative and appellate burden and costs to litigate these matters, including possible future appeals, would be substantial. By avoiding the necessity of further administrative proceedings and litigation, including possible appeals, the resources of the parties and the Commission will be appropriately conserved.” The filing said Verizon can withdraw the proposal unless the commission accepts it unchanged. The offer is the latest step in negotiations over alternative regulation between the state and Verizon dating from 2006, when the telco sought to adjust its price cap plan. The state refused to allow competitive classification statewide. Verizon has appealed the ruling. In its proposal, the company said that if the commission approves its offer, it will within 120 days issue credits of up to $130,000 to eligible customers who experienced a missed appointment for a trouble report during each month in 2006- 2007 in which Verizon failed to meet state standards. The carrier proposes to credit up to $870,000 to eligible customers who between Aug. 1, 2007, and the date of approval have had no service for more than four days. Verizon also proposed to track and report quarterly, statewide and for each of four regions, the percentage of residential voice out-of-service network trouble reports cleared within 48 hours and the percentage of such reports cleared within 96 hours. Verizon would figure clearance times as the number of hours from receipt of a trouble report until the carrier identifies the trouble on its network and restores service. The company would exclude from measurement and reporting weekends and holidays, instances in which customers request or accept intervals longer than 48 hours and episodes in which Verizon can’t gain access to a customer’s premises. Starting the first full quarter after approval, Verizon would put at risk up to $6 million annually, representing approximately the revenue from potential increases to residential services under its 2008 annual price cap filing. The company would calculate a credit for each eligible customer based on figures from throughout 2008, by dividing $6 million by the number of Verizon customers experiencing a residential out-of-service network condition lasting more than 48 hours, plus 23.57 percent of total repair appointments during the test period. The proposal would have the company extend for three years from the date of approval availability of funds for promoting Tel-Life low-cost phone service. The company would spend at least $50,000 year, up to $100,000, over each of the three years. Verizon would work with commission aides to start, develop and implement outreach efforts. If the commission approves its plan, within 60 days Verizon will file tariff changes to reduce, on a revenue-neutral basis, the monthly rate for residential contiguous “foreign exchange” (FX) service, the company said. That rate, now $14 a month, would fall to $4 for customers also subscribing to a Verizon service that includes unlimited intraLATA toll. Customers wouldn’t need to sign up for Verizon long distance service to qualify for reduced-price FX service. Verizon would continue to provide directory assistance at no charge to people certifying that they have physical or visual disabilities preventing them from using a directory themselves.
An intercarrier compensation overhaul would prevent disputes regarding access fees charged for VoIP traffic, said AT&T and other wireline carriers in comments filed Wednesday at the FCC. AT&T urged the FCC to reject a petition by Texas competitive local exchange carrier UTex asking the FCC to arbitrate a dispute with AT&T over $7.5 million in access fees charged by AT&T for VoIP traffic terminating on the public switched telephone network (CD July 29 p8). The dispute isn’t the right context to make rules, but FCC guidance on the switched-IP access charge issue is needed, the carrier said.