FCC Chairman Julius Genachowski Thursday named senior advisor Zac Katz as his new chief of staff, to serve for what is expected to be the final year or so of his chairmanship. Katz, Genachowski’s aide on wireline issues, had been a key player in the commission’s approval last year of a Universal Service Fund/intercarrier compensation order. Katz was also a top Genachowski aide behind the FCC’s approval in December 2010 of its controversial net neutrality rules, having spent a year working on that issue when he first got to the agency.
The FCC understands that some companies may not be able to meet newly imposed deadlines for auditing their books under new Universal Service Fund rules, Wireline Bureau Deputy Chief Carol Mattey said Thursday. “We are well aware of the challenges of companies that have not been able to submit to a financial audit,” Mattey said in a webinar hosted by USTelecom. “I do very much appreciate the time-sensitivity of it and I think we will be able to give some guidance on the timing of that. We recognize that certain things may not be able to be implemented by the deadline of this year.”
The Food and Drug Administration has issued a one year progress report on its efforts to implement the Food Safety Modernization Act, which was signed into law by President Obama on January 4, 2011. FDA states that it has made significant progress in developing proposed rules to implement the sweeping food safety reform law, publishing mandated reports, and taking important steps toward increasing overall food safety capacity in the U.S.
T-Mobile USA might be ready to re-emerge as a competitor now that the deal with AT&T is over: The carrier is seeking low income-only eligible telecommunications carrier status in five states. Even as the deal with AT&T was moving forward, T-Mobile was quietly seeking certification as an ETC in four states. Meanwhile, it’s protesting the FCC’s 2011 Universal Service Fund order’s treatment of carriers designated as ETCs. Its petition for reconsideration or clarification (http://xrl.us/bmnmv4) of the FCC’s USF revamp order was the first major filing by T-Mobile since AT&T’s proposed buy of the company was officially terminated Dec. 19.
Petitions for reconsideration of the new Universal Service Fund rules came in from every corner of the telecom world. A review of docket 10-90 revealed no frontal challenges to the FCC’s October reforms (CD Oct 28 p1), but, as had occurred in the months-long runup to the reforms, each sector of industry gave a laundry lists of grievances to the FCC.
Telcos will need to collect at least $27 million extra in Universal Service Fund assessments to help pay for the newly launched Connect America Fund, the Universal Service Administrative Company told the FCC in a letter released Thursday on dockets 05-337 and 06-122. Given the budget set by the October Connect America order (CD Oct 28 p1), the high cost fund will need at least $1.2 billion per quarter, “which is $27.96 million higher” than the estimate given to the FCC by USAC in November, USAC said in Thursday’s letter (http://xrl.us/bmm826). Thursday’s letter doesn’t change earlier forecasts, but it does eliminate the $77 million that had been set aside for competitive eligible telecom carriers, USAC said. “The total High Cost Support Mechanism funding requirement, including funds reserved pursuant to the Connect America Fund Order ... is $1,125.00 million [billion], adjusted as follows: increased by a prior period adjustment of $98.67 million, increased by administrative costs of $4.60 million and reduced by projected interest income of $2.04 million, resulting in a total projected 1Q2012 High Cost Support Mechanism funding requirement of $1,226.22 million [billion],” USAC said.
Wireless carrier MetroPCS asked the FCC to clarify several items MetroPCS regards as ambiguities and make some limited changes to the Universal Service Fund/intercarrier compensation order adopted at the commission’s Oct. 27 meeting. Several states also asked the commission to reconsider or clarify several state-specific issues in the order.
The FCC agreed to raise the limit on the number of pages in petitions to reconsider its Universal Service Fund reform order, the Wireline and Wireless Bureaus said in an order dated Friday and circulated Tuesday. Parties now have up to 40 pages to make their cases against the October order (CD Oct 28 p1), the FCC said. The change was in response to a request from rural telco associations, as the telecom world prepares to file challenges to the FCC’s USF reforms. Replies will be limited to 15 pages, the FCC said. The previously announced limit was 15 pages for recon petitions, 10 for replies. “We agree with the Rural Representatives that interested parties should be given sufficient opportunity to provide meaningful comments and necessary information regarding the USF/ICC Transformation Order,” the commission said (http://xrl.us/bmm2kk).
Citizens Tel Cooperative asked to be forgiven for having missed a Universal Service Fund filing deadline for its line counts, the FCC’s Wireline Bureau said in a public notice released late Thursday (http://xrl.us/bmmqzr). In its petition, Citizens said that an employee forgot to send the information in. The employee has since been disciplined and a team of employees is now in charge of meeting deadlines, so there is redundancy, Citizens said. Comments are due Jan. 23, replies Feb. 7.
Midcontinent Communications asked the FCC to waive the deadline for filing Midcontinent’s line counts, the Wireline Bureau said in a public notice released late Thursday (http://xrl.us/bmmqzt). Section 54.307(c) sets deadlines for competitive eligible telecom carriers such as Midcontinent to file line counts with the Universal Service Administrative Company in order to receive high-cost Universal Service Fund support. Midcontinent, which operates in the Dakotas and Minnesota, told the FCC in its Dec. 19 petition that it had missed the July 31, 2011, deadline because of a clerical error (http://xrl.us/bmmq4b). Comments on Midcontinent’s petition are due Jan. 23, the Wireline Bureau said. Replies are due Feb. 7.