The Department of Agriculture awarded 126 broadband grants worth $1.2 billion Wednesday as a part of its second round of broadband funding through last year’s American Recovery and Reinvestment Act. Despite the ambitious nature of the initiative, Secretary Tom Vilsack said it wouldn’t ensure the full deployment of universal broadband in the U.S.. “It’s a down payment, but not a balloon payment approach … to make broadband available in all corners of the country,” he told a media briefing. “There is a lot of work to be done but this certainly puts people to work.”

Universal Service Fund revamp legislation recently introduced by House Communications Subcommittee Chairman Rick Boucher, D-Va., and Rep. Lee Terry, R-Neb. (CD July 23 p1) doesn’t offer much for satellite broadband providers, said industry executives. The legislation, which would create a fund to help extend Internet to the most rural regions, leaves out the technology that could expand broadband the furthest at the lowest cost, they contend.

Revamping the Universal Service Fund should be an FCC priority, said Senate Commerce Committee Chairman Jay Rockefeller, D-W.Va. In a letter Tuesday to the commissioners, he asked the agency to “proceed with urgency” to fix problems in rural communications infrastructure exposed by the recent mining disaster in his home state. Rockefeller didn’t mention comprehensive USF legislation introduced July 22 by House Communications Subcommittee Chairman Rick Boucher, D-Va., and Rep. Lee Terry, R-Neb. (CD July 26 p3).

National Broadband Plan authors defended the document’s broadband speed recommendations in a laid-back and mostly friendly conversation Friday afternoon with the National Telecommunications Cooperative Association. Reporters and NTCA officials huddled on opposite ends of a large conference table, while in the middle and sitting across from each other, new NTCA CEO Shirley Bloomfield and former FCC broadband team members Blair Levin and Erik Garr debated what many rural carriers and some members of Congress have called the broadband plan’s double standard: 100 Mbps proposed for 100 million homes, but Universal Service Fund support in rural areas for only 4 Mbps.

National Broadband Plan authors defended the document’s broadband speed recommendations in a laid-back and mostly friendly conversation Friday afternoon with the National Telecommunications Cooperative Association. Reporters and NTCA officials huddled on opposite ends of a large conference table, while in the middle and sitting across from each other, new NTCA CEO Shirley Bloomfield and former FCC broadband team members Blair Levin and Erik Garr debated what many rural carriers and some members of Congress have called the broadband plan’s double standard: 100 Mbps proposed for 100 million homes, but Universal Service Fund support in rural areas for only 4 Mbps.

AT&T explained in a blog post why it’s the leading recipient of Universal Service Fund money, even as it advocates an overhaul of the program. News coverage suggesting a contradiction misses the point, wrote AT&T Vice President Hank Hultquist. “AT&T’s wireline footprint covers about 30% of the country’s rural homes, yet AT&T receives about 4% of the total USF high cost support for it doing so,” he said. “A group of smaller companies, which collectively cover about 38% of the country’s rural homes, receive almost 60% of the total USF high cost support.” Most of the wireline support that AT&T receives is for work in two states, Mississippi and Alabama, Hultquist said. “I want to be clear that AT&T is not seeking to change the fund so that it would receive support similar to that received by these smaller companies,” he said. “What AT&T has advocated for is a system where support is determined for all providers based on geographic areas relevant to investment decisions."

The Universal Service Fund must be revamped to maximize the deployment of broadband and minimize the financial burden on consumers, FCC Chairman Julius Genachowski said Wednesday. “When up to 24 million Americans don’t have access to a communications technology that is essential to participation in our 21st Century economy and democracy, I think that is unacceptable.” Speaking in Seattle to a conference of the Organization for the Promotion and Advancement of Small Telecommunications Companies, Genachowski laid out five USF reform principles.

USTelecom deflected accusations broadband isn’t being deployed in a timely manner to all Americans. The finding of the National Broadband Plan “is at odds with the findings of this more recent report that says that broadband deployment is not reasonable,” USTelecom President Walter McCormick said on The Kojo Nnamdi Show Tuesday on WAMU(FM) Washington. McCormick referred to the FCC’s Section 706 report that estimated 14 to 24 million Americans, many of whom are living in rural areas, still lack access to broadband. “We think [the report] was intended to alarm” and “we are concerned that this report is going to be used as a predicate for increased regulation,” he said.

The FCC should deny an anonymous petition to create a Universal Service Fund safe harbor for providers of audio and conference bridging, Grasshopper Group said in comments filed Thursday. “Although the InterCall Order has undoubtedly sparked confusion in the industry, this confusion will not be resolved by the mere creation of a safe harbor,” it said. Grasshopper said it spent millions on a system to identify transactions as interstate, intrastate or international and can comply with the InterCall requirements. “Creating a safe harbor degrades the investments made by Grasshopper and others.” If the commission does establish a safe harbor, providers should be allowed to choose the way they report, Grasshopper said. Carriers may owe less based on their interstate and international end-user traffic than under the safe harbor. The commission must go through a rulemaking to create a safe harbor and it should seek actual data from providers, Grasshopper said.

Rural wireless carriers didn’t endorse but some may be open to Universal Service Fund overhaul legislation by House Communications Subcommittee Chairman Rick Boucher, D-Va., and Rep. Lee Terry, R-Neb. The bill (HR-5828) is backed by major wireline associations, the cable industry and AT&T and Verizon (CD July 23 p1). Some expected a competitive bidding rule to alienate rural wireless carriers that compete for USF dollars as competitive eligible telecommunications carriers. Wireless CETCs have concerns, but believe Boucher and Terry listened hard to all stakeholders and came up with a “solid compromise,” said Rural Telecommunication Group General Counsel Carri Bennet.