The adoption of the America’s Broadband Connectivity Plan (ABC Plan) for Universal Service Fund and intercarrier compensation revamp would “send us to the nearest federal court of appeals,” James Cawley, state chairman of the USF Federal/State Joint Board, told us. Most of the state commissions that filed with the FCC on the agreement oppose preemption of state role in determining USF eligibility. But Wisconsin regulators support some limited preemption of state authority and unified access charge rates.

CTIA questioned whether the $300 million dedicated annually to support of mobile broadband services by the USTelecom-brokered agreement on Universal Service Fund and intercarrier compensation regime reforms is enough to meet the nation’s needs. CTIA filed comments late Wednesday on the plan and USF overhaul. (See related story in this issue.) “CTIA applauds the recognition of the need for on-going support for mobile services, however, this funding level appears insufficient to meet the needs of mobile broadband consumers in high-cost areas,” the group said (http://xrl.us/bmbduq). “This is particularly true given that CTIA submitted a cost study in 2008 demonstrating that it would require an investment of approximately $22 billion to bring ubiquitous 3G service to unserved areas.” As it decides the proper allocation to wireless, the FCC should “take account of the fundamental nature of mobile networks, which must be available wherever Americans live, work, and travel,” CTIA said.

For the second time in three years, the FCC could be on the cusp of making major changes to the Universal Service Fund and intercarrier compensation regimes. In late 2008, those efforts fell flat when then-Chairman Kevin Martin appeared to have support lined up for a reform order, but pulled an item prior to a vote. All signs this time around are that Chairman Julius Genachowski would like to succeed where the former commission fell short.

NCTA and the American Cable Association jointly raised concerns about a USTelecom-brokered compromise proposal on Universal Service Fund and intercarrier compensation reform, in a letter to FCC Chairman Julius Genachowski sent Tuesday. Cable operators, as key competitors to telecom carriers for voice and data, are expected to be key players as the commission looks at changing its rules for USF and intercarrier comp. Comments are due Wednesday at the FCC on the so called “consensus” agreement.

The Indiana Exchange Carrier Association asked the FCC not to make major chances to the plan for Universal Service Fund and intercarrier compensation revisions that carriers submitted to the FCC July 29. The FCC should “refrain from modifying elements of the Consensus Framework, including, but not limited to, reductions in the amount of support; the imposition of any hard cap on high-cost support; or adjustments that would affect adversely [rural local exchange carriers'] ability to obtain compensatory resources from an intercarrier compensation restructuring mechanism,” the association said in a filing (http://xrl.us/bma35e). “The carefully crafted compromises made by the Rural Associations were tuned to meet specific objectives that enable adequate cost and revenue recovery and encourage regulatory certainty. Adjustments ... that affect those interests adversely could undermine the overall effectiveness of the Consensus Framework.” The National Telecommunications Cooperative Association made similar points in a filing at the commission. “Adjustments to any element, including the restructuring mechanism or further constrictions on cost recovery, would undermine the strength of the agreement and the ability of rural rate-of-return carriers to deploy and maintain networks, as well as their ability to meet debt obligations,” the filing said (http://xrl.us/bma35x).

The FCC should take “swift and decisive” action to “promote universal broadband connectivity and advanced Internet protocol (IP) networks” as it moves forward on Universal Service Fund and intercarrier compensation reform, Google, Skype, Vonage, the Ad Hoc Telecommunications Users Committee and Sprint Nextel said in a filing to the commission (http://xrl.us/bmasxm). The filing proposes its own principles for reform, starting with an argument that the legacy USF should eventually be eliminated, in favor of a new fund that pays for broadband.

The FCC should take “swift and decisive” action to “promote universal broadband connectivity and advanced Internet protocol (IP) networks” as it moves forward on Universal Service Fund and Intercarrier compensation reform, Google, Skype, Vonage, the Ad Hoc Telecommunications Users Committee and Sprint Nextel said in a filing to the commission (http://xrl.us/bmasxm). The filing proposes its own principles for reform, starting with an argument that the legacy USF should eventually be eliminated, in favor of a new fund that pays for broadband.

Building a national wireless broadband network for public safety is the top telecom priority this fall for the Senate Commerce Committee, committee aides said. House Democratic and Republican staff, meanwhile, have continued discussions on spectrum legislation through the August recess, House officials said. Senate Commerce Committee Chairman Jay Rockefeller, D-W.Va., also is closely watching the FCC as it attempts to overhaul the Universal Service Fund and the committee may have a hearing on the AT&T/T-Mobile deal, his spokeswoman said. Senate Republicans, meanwhile, are poised to move their Congressional Review Act rebuke of the FCC’s net neutrality order.

The Rural Cellular Association seconded an op-ed by ex-Sen. Byron Dorgan, D-N.D., on the FCC’s proposed overhaul for the Universal Service Fund. Dorgan, now senior policy adviser at Arent Fox, said earlier this week that the current USF proposal could undermine phone and broadband service in rural areas (CD Aug 18 p8). “Sen. Dorgan’s concern for rural America is well-documented and well-founded,” RCA President Steve Berry said Thursday. “Many of the reforms currently under consideration would rob these Americans of any real choice in their broadband selection by largely cutting wireless companies out of the picture, and undermining the ability of those wireless companies to maintain and extend rural coverage. These kinds of reforms are wholly irrational considering the obvious consumer preference for mobility."

Americans who use the Internet are more likely to pursue active job searches and not drop out of the labor force, said a Phoenix Center study released Thursday (http://xrl.us/bmahxb). “Broadband Internet use was found to reduce the probability of becoming ‘discouraged’ by about 50 percent on average,” the study said. “Dial-up Internet use also had a large effect, reducing the probability of becoming discouraged by about one-third. Significantly, our results also demonstrated that the promotion of shared connections, such as at schools and libraries, in unserved and underserved areas may, in fact, produce substantial societal benefits.” Use of mobile broadband also keeps job searchers from becoming discouraged, though “there are meaningful shortfalls in coverage, particularly in rural markets,” the center said. “Facilitating private investment in expanded mobile broadband coverage could improve the efficiency of labor markets, particularly for persons living in lower-income households or rural markets.” To that end, the study said AT&T’s proposed buy of T-Mobile could prove beneficial since AT&T has promised to roll out LTE in 97 percent of the U.S. Rural Cellular Association President Steve Berry said the report is consistent with his group’s arguments. “Wireless is the ‘people’s choice’ and especially for minorities, low-income users and the younger generation -- mobile is the mode of access to the Internet,” Berry said. “Mobile high speed broadband must be a choice and an option in the FCC [Universal Service Fund] reform effort."