Kept in the Dark Amid Net Neutrality Debate, States Seek Better Relationship With FCC
ORLANDO -- State regulators’ relationship with the FCC “needs some work,” said NARUC Second Vice President Paul Kjellander in an interview at the association’s annual conference last week. Federal USF contribution modification could raise tension next year if the FCC continues to exclude states from the process, he said, while others identified net neutrality and VoIP classification as hot-button issues. The National Association of State Utility Consumer Advocates, holding its annual event concurrently, remains concerned about deregulation and consumers losing protection as telecom moves to IP, President Elin Swanson Katz told us.
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State-federal rapport has been wanting “for the past several administrations,” said Kjellander. States aren't well represented on the Broadband Deployment Advisory Committee, said Kjellander, an Idaho state public utilities commissioner. “We know we’re not going to get everything we want, but we at least want to be part of the dialogue.”
The FCC told states “absolutely nothing” about plans to revamp USF contribution, said Joint Board on Universal Service State Chair Chris Nelson in an interview. “We have not been consulted at all,” nor has the commission given any feedback on state members’ recommendations, Nelson said. “If you don’t like what we proposed, fine, tell us what you’d like to do so we can then have a meaningful discussion.”
FCC Chairman Ajit Pai "is committed to working closely" with Commissioner Mike O’Rielly, who chairs the USF joint board, and "with partners in state and local government," said an FCC spokesperson. He said Pai wants "to ensure that American consumers, no matter where they live, have access to robust, modern and affordable communications services.” O’Rielly didn't comment.
VoIP
Everyone’s waiting for the FCC to decide if interconnected VoIP is a telecom or information service, a long-festering question that spurred big debate at NARUC’s meeting, Nelson said.
If courts rule against Minnesota's case against Charter Communications at the 8th U.S. Circuit Court of Appeals, “consumers are going to be left without any protections,” the GOP commissioner said. VoIP is functionally the same as traditional telecom service, and all phone service is becoming IP, he said. South Dakota once had a bill to deregulate VoIP, but it was pulled by the sponsor after the PUC “strenuously opposed.”
“It’s time for Congress to step up to the plate” and write a new Telecom Act, which would include addressing internet classification issues, said Kjellander, a Republican. “I may not like [what] that certainty [is], but at least I’ll have it.” Regulators call balls and strikes, but they don’t set the strike zone, he said. Letting courts decide policy is costly and “a huge wild card” since they lack telecom expertise, he said.
This year’s Connect America Fund II auction appeared to be a success, said Nelson. South Dakota, where he's a public utilities commissioner, got winning bidders in several large broadband-unserved areas of the east, he said. “That’s going to be a huge help in closing the [digital] gap.” Another auction and a possible $600 million Rural Utilities Service pilot could be used to reach more rural western parts of the state, he said.
Net Neutrality
State consumer advocates had a “good year in the sense that we were active,” including on Lifeline, the IP transition and net neutrality, said Swanson Katz, re-elected NASUCA president. “There are a lot of really, really serious issues that are concerning to a lot of our members.”
Communications Act Title II net neutrality may be an “imperfect fit” for broadband, but it’s the best option if the only other choice is Title I, the NASUCA president said. “We really need a wholesale rethinking of the communications framework at the federal level.” Finding agreement on controversial issues like net neutrality is difficult, she acknowledged. “Unfortunately, I think it may take something really tragic happening before people understand the full magnitude of what the FCC’s doing with its full-scale deregulation.”
Swanson Katz supports a new national broadband plan (see 1811080026): “All plans need updating.” There’s reason to hope the next Congress will try to tackle rural broadband challenges because both sides of the aisle have constituents who want access, she said.