FCC Commissioner Mignon Clyburn touted a proposal to overhaul the Universal Service Fund and recommendations to create a Unified Community Anchor Network in a speech to the American Library Association on Saturday. She said the National Broadband Plan recommends adjusting for inflation the E-rate spending cap. Because of the annual spending limit of $2.25 billion, spending has actually fallen by $650 million in inflation-adjusted dollars, she said. She strongly supports the creation of Unified Community Anchor Networks, she said, which would be modeled after the research and education (R&E) broadband networks like Internet2 and National LambdaRail. The R&E networks provide high-speed service to 66,000 community anchor institutions, yet there are more than 210,000 such institutions, she said. “Expanding the R&E network model to other anchor institutions could offer tremendous benefits because many community institutions lack the resources to maximize their use of broadband,” she said. Clyburn also spoke of the need to encourage more people to make use of broadband once it’s available to them. She said the National Digital Literacy Program (NDLP) proposed in the National Broadband Plan has “great potential.” On the libraries’ side, the digital literacy challenges they face might evolve, but the need for services will continue, she said. A significant part of the NDLP is the recommendation that the Institute of Museum and Library Services develop guidelines for public access technology to help libraries assess their needs for public access workstations, portable devices and bandwidth. “After public access technology guidelines are developed, Congress should then consider providing additional public funds to expand organizational training and capacity,” she said.

Bills on spectrum reallocation are coming soon from Sens. John Kerry, D-Mass., and Olympia Snowe, R-Maine, and Rep. Ed Markey, D-Mass., they said after President Barack Obama committed to freeing up 500 MHz of spectrum over 10 years for wireless broadband. In a presidential memo Monday, Obama outlined a process to identify federal and commercial spectrum for reallocation, and use auction proceeds to support public safety. The effort will comprise administrative and legislative actions, and the White House plans to work with members of Congress, a senior administration official who refused to be named in stories told reporters on a conference call.

The agenda for the July 15 FCC meeting includes notices of proposed rulemaking to begin reforming the Universal Service Rural Health Care Fund, improving the electronic tariff filing process and a notice of inquiry and NPRM that moves the FCC further toward leasing 90 MHz of mobile satellite service (MSS) spectrum. The Spectrum Task Force prepared the rulemaking notice under guidance in the National Broadband Plan that called for the promotion of terrestrial mobile broadband deployment in MSS bands (CD June 21 p1). The items will seek comment on “ways to encourage investment in terrestrial broadband services within spectrum allocated to mobile satellite services,” the FCC said in a release. “Right now the MSS/Ancillary Terrestrial Component rules allow the available spectrum to be used for satellite,” an FCC official said. The NPRM and NOI would address whether or not some rules should be changed to allow terrestrial use.” The NOI also seeks suggestions “on how to use spectrum to develop the deployment of mobile broadband,” another official said. A rulemaking notice will initiate reforms to the Universal Service Rural Health Care Fund “to expand the reach and use of broadband connectivity by health care providers,” the FCC said. Another NPRM is aimed at streamlining the tariff filing and formatting process and seeks comment on transitioning from paper to electronic filing “to reduce industry burden and promote an open, transparent and efficient flow of information,” the commission said.

A FAQ posted Wednesday by South Dakota’s Public Utilities Commission reviews the consumer side of the AT&T/Alltel deal (CD June 24 p11). The sale, in which Verizon Wireless divested its Alltel assets in South Dakota and 17 other states, got FCC approval Tuesday. Alltel typically uses CDMA, while AT&T uses GSM/UMTS 3G technology, so AT&T will be installing its gear and migrating customers to it, the commission said. Alltel technologies may see use for as long as 12 months. According to the commission, AT&T has said its 3G network will provide similar, if not better, coverage -- though after 12 to 18 months customers probably will need new phones. “Former Alltel customers will be able to use their existing handsets for up to 12 months after the sale’s completion,” the commission said. “These customers may sign up for any AT&T special promotions in effect during that time. By the end of the 12-month period, former Alltel customers will need to change to a device that is compatible with the new AT&T network.” When Alltel subscribers in South Dakota are migrated to GSM, AT&T will provide free comparable wireless devices, and once AT&T’s 3G network is deployed customers will be able to get iPhones, the FAQ said. The company will advise customers as service availability evolves, the commission said, noting that Verizon customers will remain Verizon customers and won’t be affected. AT&T’s new customers won’t have to pick a new cellphone provider, and no one’s phone number will change, though prices could change, the FAQ said. “Former Alltel customers may continue wireless service under their existing Alltel contract terms for up to 12 months after the transaction closes,” the commission said. The shift may affect coverage, but not for at least a year, it added. “AT&T is purchasing not only the Alltel subscribers, but also the Alltel network in South Dakota,” the FAQ said. “The wireless towers that serve you today are likely to serve you when the transaction closes.” The agency plans to aid cellphone users through the transition with such efforts as the FAQ, it said. If AT&T continues to receive Universal Service funds, as Alltel did, the commission will have a say in how AT&T spends that money building out and maintaining its rural network in South Dakota, the agency said in the post at puc.sd.gov/Alltel-ATT/default.aspx.

Innovative wireless health technologies can overcome healthcare barriers for veterans in rural areas, speakers said Thursday during a House Health Subcommittee hearing. “For the three million veterans living in rural areas, access to health care remains a key barrier, as they simply live too far away from the nearest VA medical center,” said Chairman Michael Michaud, D-Maine. Given certain barriers, “it is no surprise that our rural veterans have worse health outcomes compared to the general population.” If wireless technology is utilized effectively, “it can be a tremendous benefit, especially for rural veterans,” said Rep. Gus Bilirakis, R-Fla.

The FCC plans to complete a USF overhaul next year, said Commissioner Meredith Baker at a Senate Commerce Committee hearing Thursday. Baker and her two FCC colleagues on the Federal-State Joint Board on Universal Service -- Commissioners Mignon Clyburn and Michael Copps -- agreed USF was broken. But they disagreed whether they could revamp USF without first reclassifying broadband transport under Title II of the Communications Act.

Innovative wireless health technologies can overcome healthcare barriers for veterans in rural areas, speakers said Thursday during a House Health Subcommittee hearing. “For the three million veterans living in rural areas, access to health care remains a key barrier, as they simply live too far away from the nearest VA medical center,” said Chairman Michael Michaud, D-Maine. Given certain barriers, “it is no surprise that our rural veterans have worse health outcomes compared to the general population.” If wireless technology is utilized effectively, “it can be a tremendous benefit, especially for rural veterans,” said Rep. Gus Bilirakis, R-Fla.

The FCC’s “precedents do not clearly establish whether MeetingOne’s IP-based conferencing service is subject to Universal Service Fund contributions,” MeetingOne said in reply comments to its petition regarding USF contributions. The company requested a review of a Universal Service Administrative Co. decision that subjects MeetingOne to contribution obligations for past and future revenue, the FCC said in a public notice. “In the face of uncertainty, MeetingOne has stepped forward of its own accord to ascertain the scope of its obligations.” It “should not have its business obliterated by the imposition of retroactive payment obligations,” the company said. The Voice on the Net Coalition is not taking any position on whether MeetingOne should contribute to USF, “but submits that any commission decision on the MeetingOne petition should specifically delineate the limits of USF application to collaboration and conferencing services,” the VON Coalition said in comments. There continues to be “uncertainty regarding the limits of those information services with respect to collaboration and conferencing. Therefore, the commission should use this opportunity to provide this much-needed clarity."

The “lack of spectrum probably constitutes the greatest threat to a healthy broadband ecosystem in our country 10 years hence,” Blair Levin, Aspen Institute fellow and former director of the FCC’s broadband initiative, said at the NextGenWeb Conference in Washington. There really is no unoccupied spectrum, or “marketing incentives for entities to allocate their spectrum,” he said. The National Broadband Plan’s recommendation for spectrum incentive auctions is aimed at “putting spectrum back in the marketplace,” he said. “If auction proceeds could be shared, the broadband ecosystem would have more spectrum, the entity could perform the same function better and taxpayers could benefit as well.” Levin also discussed the need for Universal Service Fund reform and said “today’s USF creates very significant problems.” He challenged those who have argued that the recommended speeds aren’t sufficient: “What’s not legitimate is to pretend that there are no costs to increasing the speed.” If anyone wants everyone in the country to support higher speeds for people in certain parts of the country, “they should be upfront … about the speeds they want, about their costs and about how they propose to pay for it,” he said. Although the FCC in September released a chart showing that about 70 percent of the country will some day have only one provider capable of delivering 50 Mbps downstream, it is no grounds for an unbundling regime, he said. The chart “is correct in terms of what we know today.” But “it may be wrong five years from now,” due to developments and upgrades from telcos, he said. “The argument for unbundling is premised on a projection that is subject to way too many variables and a policy with a potentially significant downside,” he said.

USTelecom President Walter McCormick sharply criticized the FCC Tuesday for proposing net neutrality rules that could potentially keep carriers from passing the cost of broadband to anyone but subscribers. McCormick, who keynoted at the NextGenWeb conference in Washington, also warned that driving down prices won’t be enough on its own to lead to universal adoption, and expressed deep concern about the broadband reclassification inquiry the commission launched last week.