Nebraska and Kansas regulators urged the FCC to reject a proposal by Vonage that would establish federal rules allowing nomadic VoIP providers to determine how to allocate revenue among states for state universal service programs. The Nebraska Public Service Commission and Kansas Corporation Commission said “having a system where the carrier chooses the contribution assessment method is subject to manipulation.” Providers may be tempted “to choose a method that disproportionally assigns revenue to states that do not have funds or do not assess nomadic VoIP,” it said. And the system “will not necessarily satisfy state law requirements” that the contribution method be equitable and nondiscriminatory, the state regulators said. In addition, the Vonage proposal likely will raise administrative costs for providers and state commissions, they said. “Most likely, the Nebraska Commission would be required to conduct a full audit of the carriers’ books and records to ensure that the methodology used was accurate. Audit costs are passed along to the providers.”

Nebraska and Kansas regulators urged the FCC to reject a proposal by Vonage that would establish federal rules allowing nomadic VoIP providers to determine how to allocate revenue among states for state universal service programs. The Nebraska Public Service Commission and Kansas Corporation Commission said “having a system where the carrier chooses the contribution assessment method is subject to manipulation.” Providers may be tempted “to choose a method that disproportionally assigns revenue to states that do not have funds or do not assess nomadic VoIP,” it said. And the system “will not necessarily satisfy state law requirements” that the contribution method be equitable and nondiscriminatory, the state regulators said. In addition, the Vonage proposal likely will raise administrative costs for providers and state commissions, they said. “Most likely, the Nebraska Commission would be required to conduct a full audit of the carriers’ books and records to ensure that the methodology used was accurate. Audit costs are passed along to the providers.”

Northrop Grumman supports a petition from Stratos Government Services asking for clarification on universal service fund (USF) contribution exemptions, Northrop said in comments Friday. The company said a clarification on whether government telecommunications subcontractors are subject to USF contributions is important as it expects to bid on commercial satellite communications services contracts as a systems integrator. Failure to clarify the rules will distort the federal marketplace for satellite communications services and lead to higher costs for taxpayers, the company said.

Verizon is asking the FCC to deny Stratos Government Services’ petition for clarification or declaratory ruling (WC 06-122). Stratos, a satellite technology firm, had asked the Commission to expand the “exclusive government services” exemption from contributions to the universal service fund. The exemption allows providers that sell services only to government to avoid direct contributions to the fund, Verizon claimed. If granted, Stratos’ request would heighten the competitive advantage that one class of competitors enjoys over another and would be impractical to implement, Verizon claimed.

There will be changes in the guidelines governing the broadband stimulus program, said NTIA Chief of Staff Thomas Power at an Federal Communications Bar Association seminar late Thursday. Other speakers urged more clarity and regulatory certainty.

Robust funding mechanisms like thorough reforms to the universal service fund and other FCC funding programs like the high-cost program are needed to achieve broadband deployment goals, the National Rural Electric Cooperative Association said. Flexibility is needed too because there’s no “one size fits all” for sustainable deployment models, it said. Various technology platform and business models, including public-private partnerships, will be necessary to reach consumers in unserved and underserved areas, it said. Affordability and reliability matter, it said, also urging demonstrations of broadband benefits at public-access computers in schools, libraries and other community anchor institutions. The comments (GN 09-51) were filed following the group’s earlier meeting with Commissioner Mignon Clyburn.

There will be changes in the guidelines governing the broadband stimulus program, said NTIA Chief of Staff Thomas Power at an Federal Communications Bar Association seminar late Thursday. Other speakers urged more clarity and regulatory certainty. Going forward, “we are very open to more targeted directions” but would first look at some key information including what jobs would be created and how the funded projects would help increase adoption, Power said. Everybody would like to see more money, he said. The agency is studying proposals advocating connecting anchor institutions to drive adoption. NTIA is also looking at a more comprehensive community approach, including public-private partnerships and commitments from communities, anchor institutions and last mile providers. The second notice of funds availability is targeted for the end of the year and early 2010, he said. Meanwhile, there’s tension between “doing it fast and doing it right,” Power said, noting the one-month delay in granting awards. But “we have an aggressive schedule” and the goal is to get the grants out soon. There could be changes to the broadband speed definition too as Power acknowledged that one size doesn’t fit all. Policy makers should consider actual speeds consumers get, specific applications and technology differences rather than setting a predefined goal, said Lauren Van Wazer, chief policy and technology counsel at Cox Enterprises. But it would be helpful to set the goal high, said Jeff Campbell, Cisco senior policy director. Additional clarity in rules and guidelines like open access and non-discrimination and more regulatory certainty are necessary for future rounds of stimulus application, said David Redl, director of regulatory affairs at CTIA. Additionally, clearer definition of “unserved” and “underserved” is definitely the key as definitions are still a little loose, said Jill Canfield, senior regulatory counsel at the National Telecommunications Cooperative Association, urging more efficiency. New guidelines should better reflect anchor institutions like hospitals and schools, said Microsoft Regulatory Counsel Paula Boyd. Panelists also agreed that more regulatory certainty governing net neutrality is critical. The long-term impact of potential net neutrality rules on competition and investment are unclear, Verizon Senior Vice President of Regulatory Affairs Kathleen Grillo said. Overly restrictive net neutrality rules would hurt competition and innovation, Campbell warned. How net neutrality principles would be coded into law is key, said Benjamin Lennett, a policy analyst with New America Foundation. Spectrum and the universal service fund (USF) would definitely be a key part of FCC’s National Broadband Plan, due to Congress in February, panelists said. In addition, Grillo said she hopes to see more focus on smart grid and health IT. Devices, applications and broadband content should also be part of the plan, said Cathy Messey, executive vice president at Clearwire. Broadband data collection hasn’t addressed price issues, said Scott Wallsten, economics director of the FCC’s Broadband Task Force. Without price data, demand can’t be tracked, he said. Confidentiality matters in data gathering, said Jonathan Banks, a senior vice president at USTelecom.

The FCC should clarify the government services exemption from Universal Service Fund contributions, Globecomm Systems told the commission Thursday. The company responded to a public notice on a petition seeking a ruling or clarification on the exemption. The company believes the exemption, which says entities providing interstate telecommunications to government don’t have to contribute to USF, should apply to subcontractors too. Including subcontractors will help minimize costs of high-quality service to the government, which is the goal of the exception, Globecomm said.

Qwest Q3 profit was down six percent year-over-year to $136 million due to economic headwinds and cost-cutting charges, it said. CEO Ed Mueller underlined his confidence, saying the company’s not so concerned about some regulatory debates like net neutrality. Mueller continued to be bullish on fiber-to-the-node (FTTN) instead of fiber-to-the-home (FTTH).

The Universal Service Administrative Co. (USAC) and the National Exchange Carriers’ Association (NECA) go beyond their authority in imposing fund contributions assessments on international-only carriers, Globecomm Systems said in a FCC filing Tuesday. The comments were in response to a petition from the Ad Hoc Coalition of International Telecommunications Companies asking for a ruling on the USAC’s authority. Because Globecomm provides mostly international services, its interstate revenue is “de minimis for purpose of USF contribution,” it said. Globecomm noted that some of its services go through the U.S. via satellite to interconnect with other telecom carriers. The company is also concerned about the prospect of new fees imposed by NECA, “a fund administrator operating with even less specific authority from the commission than USAC.”