Intercarrier compensation reform as proposed by the FCC likely won’t...

compensation reform, as would any simplification to the administrative processes associated with intercarrier compensation that the FCC could bring about,” the company said. “We are unsure, however, whose wireless customers will derive sizeable benefits from ICC reform. SouthernLINC foresees only a modest savings resulting from dropping rates, and it does not believe that there is anything particularly unique about its customers’ calling patterns. The bulk of its traffic is already exchanged at very low per minute rates or is wireless-to-wireless traffic, either on its own network or exchanged with those of other wireless carriers and thus subject to bill-and-keep.” Worse, SouthenLINC said, “it appears likely that wireless consumers in general will continue to heavily subsidize wireline carriers.” The FCC should not approve any Universal Service Fund proposals that support only one service provider in any area, company representatives said in meetings with commission officials. “We urged the Commission to make support available in areas where it is necessary in a manner that, at a minimum, preserves the threat of competitive entry from any type of service provider using any type of technology,” the company said in a filing (http://xrl.us/bmfkbc). “Regulators simply cannot keep up with the pace of technological change, and subsidization programs that pick a single winner in a market necessarily will slow the deployment of new technology not only by potential new entrants but also by the ‘winner’ of the subsidy.” More troubling, it appears likely that wireless consumers in general will continue to heavily subsidize wireline carriers, SouthernLINC said. Genachowski’s remarks were vague, it said, but if wireless carriers are able to participate only in the Mobility Fund portion of the Connect America Fund, then wireless consumers will continue to heavily subsidize wireline networks through the CAF. Moreover, the FCC appears ready to experiment with a competitive bidding process only with wireless carriers, excluding wireline carriers from that risk as well, it said. While the goal of broadband for all is a laudable one, SouthernLINC said, financing the extension of broadband to rural America primarily through wires will distort the market, won’t necessarily fulfill the wants and needs of rural consumers, and will not promote “healthy competition."