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FCC Chairman Julius Genachowski is expected to circulate by Tuesday...

FCC Chairman Julius Genachowski is expected to circulate by Tuesday a proposed rulemaking notice that will focus on using universal service funds to support broadband deployment, an FCC official said. The notice has been expected. It’s expected to focus on…

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reform of the high-cost fund and intercarrier compensation but will not discuss the contribution factor, the official said. The notice is expected to focus on the short- to medium term, essentially turning USF into a “broadband for America” fund, but will ask questions on how to handle a long-term overhaul of the system, the official said. There is broad consensus that universal service is long overdue for a rethink, but Genachowski and his staff are walking a fine line because it will be difficult to make changes without asking some sectors to give up on millions of dollars in support.