A GOP wave claimed longtime telecom heavyweight Rep. Rick Boucher, D-Va., and other Democrats in rural states, as Republicans seized control of the House Tuesday. The Republicans also won seats in the Senate, but the Democrats maintained power there. The GOP gain is seen as bad news for net neutrality supporters, while the loss of House Communications Subcommittee Chairman Boucher is a setback for rural telcos who supported his efforts to overhaul the Universal Service Fund.

Small carriers need money to build out their networks and the Corr Wireless order was wrong to not redirect surrendered funds back to other competitive eligible telecommunications carriers (CD Sept 7 p1), the Rural Telecommunications Group said in a filing at the FCC. In the order and notice of proposed rulemaking, the FCC declined to redistribute reclaimed high-cost support to other CETCs and proposed amending its Interim Cap Rule so that a state’s interim cap would be adjusted if a CETC relinquishes funds, as Verizon Wireless and Sprint Nextel did through merger commitments. In September, the commission ruled that the Universal Service Administrative Co. can’t modify the interim cap by deducting Verizon’s and Sprint’s contributions, but ruled that other eligible telecommunications carriers aren’t entitled to divvy up the left-over cash. The commission has since opened up to comments on how to handle surrendered USF funds (CD Sept 7 p6). “Existing wireless CETCs will use additional support to deploy advanced networks, cover unserved areas, and make available mobile broadband, ensuring that consumers in all regions of the nation have access to affordable services,” RTG said. “The Commission has recently acknowledged that while some areas lacking 3G coverage have some level of mobile voice service, other areas have no mobile wireless service at all.”

GOP election gains would boost top phone, cable and broadcasting companies, Stifel Nicolaus said in an analyst note Monday. And it would disadvantage their telecom, media and tech rivals, including Sprint Nextel, Google and Dish Network, the analysts said. Spectrum, privacy and revamping the Universal Service Fund may be less partisan, but “the expected Republican House takeover and more closely divided Senate appear likely to reinforce gridlock on most bills, with aggressive GOP oversight slowing the FCC agenda.” A GOP House win would diminish the chances of a net neutrality deal by current House Commerce Committee Chairman Henry Waxman, D-Calif., the analysts said. “Our sense is the FCC could move forward with a net neutrality order, building off consensus already reached and without reclassifying,” they said. “Without Title II pressure or some other driver, broadband reform legislation seems unlikely next Congress.” A GOP takeover of the House would also be a setback for Universal Service Fund legislation by Rep. Rick Boucher, D-Va., since it would mean the end of his chairmanship on the House Communications Subcommittee, the analysts said. Republican gains would help broadcasters in battles over retransmission consent, spectrum reallocation and radio performance fees, the analysts said. And GOP gains would help big telcos resist rivals’ calls for special access regulation, they said. In addition, Republicans would likely support lowering corporate taxes and oppose new overseas earnings restrictions for companies, Stifel Nicolaus said. A comprehensive spectrum bill could go forward no matter what happens, since both parties support wireless broadband and recognize the need for more spectrum, they said.

GOP election gains would boost top phone, cable and broadcasting companies, Stifel Nicolaus said in an analyst note Monday. And it would disadvantage their telecom, media and tech rivals, including Sprint Nextel, Google and Dish Network, the analysts said. Spectrum, privacy and revamping the Universal Service Fund may be less partisan, but “the expected Republican House takeover and more closely divided Senate appear likely to reinforce gridlock on most bills, with aggressive GOP oversight slowing the FCC agenda.” A GOP House win would diminish the chances of a net neutrality deal by current House Commerce Committee Chairman Henry Waxman, D-Calif., the analysts said. “Our sense is the FCC could move forward with a net neutrality order, building off consensus already reached and without reclassifying,” they said. “Without Title II pressure or some other driver, broadband reform legislation seems unlikely next Congress.” A GOP takeover of the House would also be a setback for Universal Service Fund legislation by Rep. Rick Boucher, D-Va., since it would mean the end of his chairmanship on the House Communications Subcommittee, the analysts said. Republican gains would help broadcasters in battles over retransmission consent, spectrum reallocation and radio performance fees, the analysts said. And GOP gains would help big telcos resist rivals’ calls for special access regulation, they said. In addition, Republicans would likely support lowering corporate taxes and oppose new overseas earnings restrictions for companies, Stifel Nicolaus said. A comprehensive spectrum bill could go forward no matter what happens, since both parties support wireless broadband and recognize the need for more spectrum, they said.

The FCC needs to affirm its authority in several areas “critical to the civil rights community,” regardless of its ultimate decisions on net neutrality, a group of civil rights, privacy, and consumer organizations told the commissioners by letter Friday. “Regardless of how organizations view net neutrality, the Commission’s authority to achieve many objectives critical to the civil rights community must be affirmed,” the letter said. “These objectives include expansion of the Universal Service Fund to broadband, assurance of transparency and truth in billing, protection of consumers’ privacy online, and Internet accessibility for those with disabilities.” The letter warned that the importance of moving forward on the other objectives “has been lost in the context of the debate on net neutrality.” The signers were representatives of the NAACP, the American Association of People with Disabilities, the American Civil Liberties Union, the Asian American Justice Center, the Benton Foundation, the Communications Workers of America, Consumer Action, Consumer Watchdog, the Leadership Conference on Civil and Human Rights, the National Consumers League, the National Organization for Women, the National Urban League and the United Church of Christ’s Office of Communication. “FCC authority is integral to the ongoing civil rights effort to connect historically disadvantaged communities to high-speed Internet service,” said Media Access Project President Tyrone Brown.

U.S. households would face a $30 monthly Universal Service Fund fee if the FCC were to require 100 Mbps for everyone through USF, FCC Chairman Julius Genachowski said. In a letter Oct. 13 to Sen. Saxby Chambliss, R-Ga., released last week, Genachowski defended the National Broadband Plan recommendation of 4 Mbps nationwide through USF. The plan also set a goal of 100 Mbps for 100 million homes by 2020. Chambliss and other rural legislators have said that recommendation favors urban areas and relegates their rural constituents to second-class broadband. Genachowski said 4 Mbps “is very aggressive and represents one of the highest levels in the world today for universalization,” while 100 Mbps “is based on a long-range goal.” Users can e-mail, browse the Web, have two-way video calls and watch standard-definition video with 4 Mbps, he said. “The target speed also is ‘reasonably comparable’ to the broadband service currently provided in urban areas,” as defined by Section 254 of the Communications Act, he said.

The FCC needs to affirm its authority in several areas “critical to the civil rights community,” regardless of its ultimate decisions on net neutrality, a group of civil rights, privacy, and consumer organizations told the commissioners by letter Friday. “Regardless of how organizations view net neutrality, the Commission’s authority to achieve many objectives critical to the civil rights community must be affirmed,” the letter said. “These objectives include expansion of the Universal Service Fund to broadband, assurance of transparency and truth in billing, protection of consumers’ privacy online, and Internet accessibility for those with disabilities.” The letter warned that the importance of moving forward on the other objectives “has been lost in the context of the debate on net neutrality.” The signers were representatives of the NAACP, the American Association of People with Disabilities, the American Civil Liberties Union, the Asian American Justice Center, the Benton Foundation, the Communications Workers of America, Consumer Action, Consumer Watchdog, the Leadership Conference on Civil and Human Rights, the National Consumers League, the National Organization for Women, the National Urban League and the United Church of Christ’s Office of Communication. “FCC authority is integral to the ongoing civil rights effort to connect historically disadvantaged communities to high-speed Internet service,” said Media Access Project President Tyrone Brown.

Worried about the new shape of the Universal Service Fund, rural telcos have said they're going to come up with a USF formula of their own, said a joint ex parte filing by the Independent Telephone & Telecommunications Alliance, the National Telecommunications Cooperative Association, Organization for the Promotion and Advancement of Small Telecommunications Companies and the Western Telecommunications Alliance.

More than 40 percent of NTIA broadband stimulus money went directly to or was shared by areas represented by members of the House Commerce Committee, although committee members make up 14 percent of the House, an analysis of government records shows. Committee members’ districts won all or parts of nearly $1.9 billion in grants, NTIA records show. On the Senate side, more than 51 percent -- about $2 billion -- of the money given out by the NTIA went to states with senators on the Commerce Committee, NTIA records show. Twenty-five senators, one quarter of the Senate, sit on the committee. Legislators whose home districts got money said there’s no connection between their committee role and the grants.

More than 40 percent of NTIA broadband stimulus money went directly to or was shared by areas represented by members of the House Commerce Committee, although committee members make up 14 percent of the House, an analysis of government records shows. Committee members’ districts won all or parts of nearly $1.9 billion in grants, NTIA records show. On the Senate side, more than 51 percent -- about $2 billion -- of the money given out by the NTIA went to states with senators on the Commerce Committee, NTIA records show. Twenty-five senators, one quarter of the Senate, sit on the committee. Legislators whose home districts got money said there’s no connection between their committee role and the grants.