HILL, FCC STAFFERS PREDICT BUSY SUMMER FOR TELECOM ISSUES

Responding to OPASTCO’s top issues (CD May 19 p4), Stien said Congress is working on estate tax repeal, considering a VoIP bill and “teeing up” universal service reform with hearings planned this summer. He told the rural telephone executives that members of the Commerce Committee are interested in “high-tech topics” such as VoIP and powerline communications because several are “gadget freaks.” He said members of Congress are aware “that you've done amazing work bringing broadband to rural areas.”

Meanwhile, the FCC plans to act soon on some intercarrier compensation (ICC) issues that require immediate attention, said Jane Jackson, assoc. chief of the FCC Wireline Bureau. Expanding on comments Tues. by Wireline Bureau Chief Bill Maher (CD May 19 p12), she told OPASTCO members the FCC envisions a 2-part move on ICC, acting soon on pending issues under the current access charge regime and waiting to act on the bigger issue of reforming the compensation systems. The agency has been waiting for a recommendation from an industry group trying to reach agreement on ICC, but their meetings reportedly have become highly contentious (see story elsewhere in this issue).

Jackson said the FCC is faced with a “3-year-old NPRM” on intercarrier compensation plus petitions from entities trying to “sort out all of the problems that arise under the current rules.” Jackson said some pending issues must be acted on soon, such as “the 2nd remand of the 2nd try at doing something on ISP reciprocal compensation” and a forbearance petition with an upcoming deadline for action. “We also have a whole lot of issues, a lot between you [rural carriers] and wireless carriers, about how do you interconnect and pay or not,” she said. “We consider a lot of those issues are ripe for action now.” She said “we are dearly hoping something wonderful will come from the industry that’s useful to the process [of intercarrier compensation].” However, “if nothing comes to us from the Intercarrier Compensation Forum we're going forward anyway,” she said. Asked to further explain the agency’s 2-part strategy on ICC, Jackson said there would first be an order focusing on the ISP-reciprocal compensation remand and other pressing issues. Then perhaps comments would be sought on the bigger issue of reform, she said.

Jackson said any ICC action would include transitions and there would be “different transitional slopes for rural and urban” companies because “there is a lot more to solve” for rural companies. For example, she said, “transiting is a big deal.” Asked if bill & keep (B&K) can work in rural areas, Jackson said it would be “harder to devise a good bill & keep-based plan that meets all the needs” of rural America but she’s “not ready to say it can’t work.” However, she also emphasized that the FCC hasn’t officially made a decision to move to B&K: “Bill and keep is not the only way to get uniform rates,” she said.

FCC Comr. Adelstein told the group that rural carriers “are at a crossroads” as competition and technology place strains on their operations. “We share your vision about the need for rural America to thrive and grow,” he told them. He said he was glad OPASTCO members were talking to members on Capitol Hill about universal service changes, because the Telecom Act “says universal service must be sustainable so it can’t grow out of control.” He said he agreed with OPASTCO opposition to limiting funding to primary lines and hopes that proposal “is dead on arrival at the FCC.” He said the FCC ought to look at 3 key issues -- the ETC designation process, the level of support that goes to competitive ETCs and whether there should be areas of the country where funding of competitive ETCs is limited.