FCC Chairman Julius Genachowski’s staff has concluded that the nation’s broadband gap may be widening, with up to 26 million Americans lacking access to high-speed Internet, FCC officials told us. But critics are already lining up to condemn the report’s methodology and implications. The report, which began circulating earlier this month, said broadband is still not reaching Americans “reasonably” or “timely” (CD April 26 p11). Like last year’s report, the so-called section 706 report relies on subscribership data from form 477 to set the lowest end of the broadband gap range. Unlike last year’s report, Genachowski’s staff uses data from NTIA’s broadband map to determine the high end of the range -- 26 million Americans, FCC officials told us. Last year, the commission used data from models in the National Broadband Plan to determine that up to 24 million Americans were without high-speed broadband.

Using reverse auctions to speed up broadband deployment is contrary to the 1996 Telecom Act and could “blow up” the FCC’s ambitious Universal Service Fund reforms, U.S. Cellular Senior Director Grant Spellmeyer said during an FCC workshop Wednesday. Section 214 of the act gives states the power to designate eligible telecommunication carriers and USF is otherwise under Title II, Spellmeyer said. Reverse auctions fail both tests by reducing ETCs to a single carrier and opening up universal service cash to non-Title II carriers. “We think the FCC needs to stop, go to the Joint Board, and get a recommendation for broadband support,” he said. “Sections 214 and 254 are very clear. You can’t ignore all that. This is going to blow up if we skip all that stuff."

The FCC’s desire to cap the Universal Service Fund may collide with “the rubric” of technological neutrality in considering broadband projects, Washington Utilities and Transportation Commissioner Phil Jones told FCC officials during a panel. “The world you're describing is not the world we're living in,” he said Wednesday. “The rubric of ’technology-neutral’ means ‘unlimited funding.'” Capping the fund will cause an array of trade-offs: Whether to focus on high speed or fuller coverage, or whether to focus on better service metrics or companies’ management capabilities, Jones said.

Colorado Republicans Sen. Mark Scheffel and Rep. Carole Murray proposed a measure to remove state regulators’ control over certain rates and eliminate the state high-cost fund by 2031. While companies like AT&T claim the bill is good for innovation and job creation, consumer advocates cautioned of rate increases and a weaker consumer protection mechanism.

The FCC is relying on the NTIA’s new broadband map to conclude that high-speed broadband services aren’t being deployed “reasonably” or “timely,” commission officials said. Chairman Julius Genachowski’s staff is circulating its annual report, called the “706” report because Section 706 of the Telecom Act requires the commission to make sure that advanced technology is reasonably and timely being deployed. The report is due to Congress by the end of the month. As expected, the report once again finds that broadband isn’t reaching Americans quickly or reasonably enough (CD April 12 p11). Last year, the commission relied on its own modeling to argue for its first-ever finding. NTIA’s broadband map is the crux of this year’s study. Last year’s 706 findings have since become important arguments for the commission’s rules on net neutrality, data roaming and the proposed Universal Service Fund and intercarrier compensation regime reforms.

The FCC is relying on the NTIA’s new broadband map to conclude that high-speed broadband services aren’t being deployed “reasonably” or “timely,” commission officials said. Chairman Julius Genachowski’s staff is circulating its annual report, called the “706” report because Section 706 of the Telecom Act requires the commission to make sure that advanced technology is reasonably and timely being deployed. The report is due to Congress by the end of the month. As expected, the report once again finds that broadband isn’t reaching Americans quickly or reasonably enough. Last year, the commission relied on its own modeling to argue for its first-ever finding. NTIA’s broadband map is the crux of this year’s study. Last year’s 706 findings have since become important arguments for the commission’s rules on net neutrality, data roaming and the proposed Universal Service Fund and intercarrier compensation regime reforms.

Wisconsin Republicans Rep. Mark Honadel and Sen. Rich Zipperer circulated a draft bill that would update the state telecom law. The bill is expected to be introduced soon after the Tuesday deadline for co-sponsorship. Two coalitions fought over the proposed mandate on payment of intrastate access charges on VoIP. The effort of updating the state telecom law has Gov. Scott Walker’s support, Honadel told us. The governor’s office couldn’t be reached immediately for comment, but Walker suggested during his campaign he’s open to new telecom legislation. The draft bill seeks to reduce the state telecom regulators’ authority over telecom utilities, imposes requirements on certain intrastate switched access rates, and eliminates mandatory tariffs except for intrastate switched access service. It also specifies the Public Service Commission’s authority over interconnected VoIP and seeks to change requirements for the use of another person’s transmission equipment and property by public utilities and telecom providers. The bill is about creating a level playing field between incumbent and competitive carriers, said Bill Esbeck, head of the Wisconsin State Telecom Association (WSTA). CenturyLink supports the proposed bill because it offers “the best opportunity to achieve meaningful regulatory reform in Wisconsin,” a spokesman said. The bill would mandate the payment of intrastate switched access charges on VoIP traffic, creating “a new and costly assessment,” said Glenn Richards, head of the VON Coalition. That would mean higher rates for VoIP users in the state, he said. Only the FCC can establish rules for intercarrier compensation for VoIP traffic and it’s doing just that right now with its intercarrier compensation and universal service fund proceeding, he said. He urged adopting a bill that would prohibit state regulation of IP-enabled services. Two federal courts confirmed tariffed access charges don’t apply to VoIP, he said. Honadel said he’s aware of the VON Coalition’s concerns and hopes the issue will be raised at the public hearings so legislators can hear from all parties what they believe will be the bill’s impact on VoIP. Another coalition, including AT&T, Wisconsin Cable Communications Association, WSTA and TDS Telecom, disagreed with the VON group, saying the proposed intrastate access provision would not result in any new assessment or new fees for current VoIP customers. The proposed bill, which provides for “significant deregulation of interconnected VoIP” in the state, “merely codifies the current practices” whereby all providers that currently offer interconnected VoIP both pay and charge intrastate access, the group said, noting AT&T, a VON Coalition member, already pays intrastate access in the state for its interconnected VoIP U-verse voice service. Additionally, recent state commission and court decisions have identified the appropriateness of applying intrastate access payments to interconnected VoIP, it said, citing the Iowa Utilities Board’s order that concluded Sprint must pay amounts owed to Iowa Telecom, in compliance with Iowa Telecom’s switched access tariff. The coalition agrees that federal action will likely preempt any state statutes regarding interconnected VoIP. But until the FCC makes a definitive statement on interconnected VoIP, Wisconsin should maintain the current practices of VoIP payment, the group said.

Wisconsin Republicans Rep. Mark Honadel and Sen. Rich Zipperer circulated a draft bill that would update the state telecom law. The bill is expected to be introduced soon after the Tuesday deadline for co-sponsorship. Two coalitions fought over the proposed mandate on payment of intrastate access charges on VoIP.

Most public officials, consumer advocates and industry executives opposed capping the Lifeline and Link-Up programs, in comments to the FCC. But Verizon backed the cap and suggested that the FCC create a voucher program and a central administrator to watch the fund, and the Mississippi Public Service Commission said the FCC should “seriously consider” a cap, “then a state-by-state cap for the low-income fund may offer some promise.” “In fact, an indexed national cap that considers the unique circumstances of each state, especially from the perspective of poverty rates, per capita personal income, levels and unemployment, is worthy of additional review,” the Mississippi regulators said. But the cap should be scrapped “if low-income persons will be deprived of needed support,” the Mississippi commission said.

The Food and Drug Administration has issued a frequently asked questions document on the Food Safety Modernization Act (FSMA) provisions dealing with imports, fees, inspection and compliance, preventive controls, produce standards, scope, etc. Among other things, FDA states that it is working on defining high-risk food needing certification under the FSMA; that it can charge fees for the voluntary qualified importer program, export certifications and third party accreditation; that third-party auditors of foreign facilities must notify FDA of any conditions that could pose serious risk, etc.