Four Democratic members of Congress representing American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands urged the FCC to adopt an alternative universal service reform approach for the Insular Areas by exempting insular carriers from any phase-down of, or caps on, current levels of high-cost support, they said in a joint letter to the FCC. They also asked the FCC to exempt Insular Areas from its prior decision to cap support for competitive carriers at March 2008 levels. They urged the commission not to implement a reverse auction mechanism for broadband funding in the Insular Areas. Phasing down support from the already reduced cap levels could be devastating to consumers in the Insular Areas, they said. The members include Madeleine Bordallo (Guam), EniFaleomavaega (American Samos), Donna Christian-Christensen(Virgin Islands), and Gregorio Sablan (Northern Mariana Islands).

Incumbent local exchange carriers should be given the right of first refusal to accept or turn down baseline support, followed by a competitive bidding process, Debbie Goldman, Communications Workers of America’s telecommunications policy director, reported saying during a call with Zac Katz, aide to FCC Chairman Julius Genachowski, discussing Universal Service Fund reform. “Providing the incumbent LEC the right-of-first refusal makes the most efficient and expeditious use of limited capital to spur broadband build-out to unserved rural areas by allowing the existing carrier to leverage its current network plant and equipment, technical and market knowledge, skilled workforce, and customer relations to expand broadband to areas already served by its voice network,” CWA said in an ex parte filing (http://xrl.us/bmferj).

The FCC confirmed that Chairman Julius Genachowski will circulate a proposed order that he hopes will lead to reform the universal service and intercarrier compensation regimes. The FCC called a briefing with reporters where agency officials spoke on the condition they not be named and said Genachowski will deliver a speech Thursday laying out some of his proposals. FCC officials declined to discuss specifics in Tuesday’s briefing, set for Thursday at 10:30 a.m. at FCC headquarters, instead reiterating their talking points about why reform was necessary.

Assurance Wireless started selling service in Rhode Island, said the company which runs a Lifeline Assistance program supported by federal Universal Service Fund. The company will offer eligible residents a free cellphone and 250 free monthly voice minutes. Customers can pay for additional minutes, texting, international calling and more, Assurance said.

The FCC might not adopt any existing plan to revamp the Universal Service Fund in its entirety, state officials said at a webinar by the National Regulatory Research Institute Monday. Even if the commission is to adopt an order for the Oct. 27 meeting, it might not be a final order, said James Cawley, chair of the state member of the Federal/State USF Joint Board.

The FCC should shuck the cost-based model of the Universal Service Fund and adopt “a value-based approach” as it transitions USF to a national broadband fund, the Technology Policy Institute argued in a white paper released Friday. Senior Fellow Scott Wallsten said the current high-cost fund “does not incorporate how much consumers value the services” and doesn’t measure “the incremental, rather than average, effects of the program.” The new broadband fund, dubbed the Connect America Fund, “can overcome both problems and operate far more efficiently than the existing high-cost program ever could,” Wallsten argued. Moving to a value-based approach would require “regular studies” on what customers will pay for broadband services, he said. “This information would be used to help determine what types of service should be subsidized in unserved areas, which areas to fund, and the maximum amount that should be spent on subsidies."

The FCC should shuck the cost-based model of the Universal Service Fund and adopt “a value-based approach” as it transitions USF to a national broadband fund, the Technology Policy Institute argued in a white paper released Friday. Senior Fellow Scott Wallsten said the current high-cost fund “does not incorporate how much consumers value the services” and doesn’t measure “the incremental, rather than average, effects of the program.” The new broadband fund, dubbed the Connect America Fund, “can overcome both problems and operate far more efficiently than the existing high-cost program ever could,” Wallsten argued. Moving to a value-based approach would require “regular studies” on what customers will pay for broadband services, he said. “This information would be used to help determine what types of service should be subsidized in unserved areas, which areas to fund, and the maximum amount that should be spent on subsidies."

Universal service lobbying was intensifying at the FCC as the deadline for the October open meeting drew near, filings on docket 10-90 showed. Comcast, Cox Communications, Northeast Colorado Cellular, U.S. Cellular, USTelecom, NTCA, NECA, Free Press, Dish Network and CompTel posted ex parte notices Friday. If the commission is to adopt an order for the Oct. 27 meeting, drafts must circulate by Thursday. Most industry observers expect such an order, but weren’t certain how many changes staff would make from the incumbent-backed ABC and rural consensus plans. The most-contested provisions remained the right-of-first-refusal provision for wireline carriers and the size of the mobility fund, but Free Press also filed a lengthy denunciation of the plans.

Six senators urged the FCC to use the incumbent-backed ABC plan for universal service and intercarrier compensation regime reforms as “a framework” for reforms. The senators -- Amy Klobuchar, D-Minn., Orrin Hatch, R-Utah, Mary Landrieu, D-La., Jerry Moran, R-Kan., John Thune, R-S.D., John Hoeven, R-N.D., and Jon Tester, D-Mont. -- said the ABC plan and the rural consensus filing “appear to represent a framework that the Commission can use while crafting responsible Universal Service Fund high-cost support and intercarrier compensation reforms in a broadband environment.” Klobuchar and Thune are on the Communications Subcommittee; Hatch is on the Judiciary Committee.

Wireless carrier officials say they see some willingness on the FCC’s part to make changes to the final Universal Service Fund/intercarrier comp order to address wireless concerns. Numerous small and mid-sized carriers have been at the commission in recent days to make clear their concerns. One discussion point has been the size of the fund, industry officials said. A second has been putting in place rules that would guarantee a dedicated fund for wireless buildout.