Some claimed as inevitable a transition to broadband from public switched telephone networks, while others cautioned that IP-to-IP networks lack the economy and regulation that public switched telephone network (PSTN) has. The comments came at a Regulatory 2.0 Workshop hosted by Pillsbury Winthrop on Tuesday.

States have concerns about a revamp of the Universal Service Fund, Indiana Utility Regulatory Commission member Larry Landis said Tuesday. The Republican supported the FCC’s undertaking a USF overhaul that could reallocate some money to broadband service. Some states are worried about how companies that rely on the high-cost part of the fund will be affected by a revamp, Landis said at an American Cable Association conference. Some providers get a large chunk of their revenue from that part of USF, he noted. “The one concern that would be shared by many of my colleagues” is that whenever intercarrier compensation and USF overhauls are done, “you are bound to have some unexpected challenges that come up,” Landis said.

Chairman Julius Genachowski’s staff began circulating its annual report on broadband deployment Friday, FCC officials told us. The “706” report, named for section 706 of the Telecom Act, is the commission’s assessment of how “reasonably” and “timely” advanced telecommunications are being deployed around the nation. Last year, the commission found for the first time that high-speed broadband wasn’t reaching enough Americans. That report has since become a key element in the commission’s rules on net neutrality, data roaming and the proposed Universal Service Fund and intercarrier compensation regime reforms. Commissioners are reviewing the report, the officials said. It’s due to Congress by the end of the month.

Commissioner Michael Copps took aim at the FCC on media issues, adding to his previous calls for the agency to act on more issues in that area and to do so quickly. In a speech Saturday at the National Conference for Media Reform, and in an interview Monday with Communications Daily, he expressed disappointment the regulator hasn’t done more. Having acknowledged this will be his last year on the FCC (CD April 11 p6), Copps said his priority for the remainder of his tenure is for it to move ahead on “media reform."

Nearly 30 senators cautioned the FCC not to upset rural investments as the commission revamps the Universal Service Fund and intercarrier compensation. The late Tuesday letter to Chairman Julius Genachowski was signed by Sens. Mark Begich, D-Alaska, John Thune, R-S.D., and 27 other senators from both parties. “Reform proposals must strike a balance to protect the investments that have already occurred and the need to overhaul the programs."

The FCC has many tools at its disposal to tackle spectrum constraints, whether it’s improving spectrum efficiency or freeing up more spectrum, Wireless Bureau Chief Ruth Milkman said at the Wireless Communications Association conference. The commission is looking at spectrum sharing and harmonization opportunities, and is willing to work with industry to come up with a solution to better inform consumers on throughput, she said Wednesday. It takes time to bring spectrum to auction, so “we have to start now” to avoid a spectrum crunch that will result in poor quality of service for consumers, Milkman said.

USTelecom’s proposal on dealing with phantom traffic was backed by CenturyLink Vice President Melissa Newman and NTCA Vice President Michael Romano. “It’s a great starting point,” Newman said Wednesday at the FCC’s day-long workshop on intercarrier compensation overhaul. The plan would create per-minute benchmarks for calls to signal what some in the industry call phantom traffic. “It’s all about costs and volumes and the original premise of these tariffs in rural areas was based on low volumes,” Newman said: She hopes FCC officials realize that “there’s agreement on this panel."

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Dish Network’s proposed $320 million buy of bankrupt Blockbuster could mean more store closings as the satellite service focuses on the chain’s Internet business, analysts said. But Dish seems prepared to try to salvage some of Blockbuster’s 1,717 stores as a channel for sales of its service. A hearing on the proposed sale is scheduled for Thursday in Bankruptcy Court in New York City. Dish expects to close the deal in Q2.

Clarification: Talks among a broad range of parties to find an industry consensus on intercarrier compensation and Universal Service Fund overhaul have been ongoing for some time (CD April 5 p4). The USTelecom-led talks are aimed at giving carriers a change to recoup some losses from reductions in access charges and to aim universal-service support better at high-cost areas. Gary Epstein, retired from Latham & Watkins, now works at the Aspen Institute.