AT&T will file an emergency petition at the FCC next week asking the agency to move to a “more sustainable” numbers-based system for collecting Universal Service Fund payments, the company said Wednesday. AT&T pointed to the record 12.9 percent USF contribution factor, which kicked in Wednesday, in citing the need for immediate action. “This is the highest contribution factor in history, and is equivalent to more than a half-a-billion dollar increase since the beginning of this year for those consumers and businesses that ultimately pay for this program,” Senior Vice President Robert Quinn said in a statement. “It is our customers who pay to support this program.” AT&T called for quick action by commissioners. “Because moving to a telephone numbers- based system will require 12-18 months to implement by both USAC and the industry, it is critical to begin this process now,” Quinn said.

Communications lawyers faced a recession-induced slump with fewer deals, less regulatory work and clients taking longer to pay bills in the first five months of 2009, a Communications Daily survey of 14 firms with media and telecom regulatory practices found. Corporate restructuring work largely took the place of traditional takeovers, as some firms left attorney vacancies unfilled and cut costs by other means, said firms we surveyed, which together employ almost 700 communications attorneys.

Pennsylvania’s Public Utility Commission now accepts some documents in online form without paper backup. The voluntary system allows utilities, lawyers and consumers to skip paper submissions and file certain documents online, to serve other parties with documents electronically if they agree to such service, and to get online service of documents from the commission. Along with answers to official complaints and applications for licenses and reply comments, telcos can e-file new and revised tariffs, ask to begin service and transmit universal service fund and interconnection agreement documents and more online, the commission said last week. E-filers must register their names and postal addresses, parties they represent and, for online document service from the regulator, e-mail addresses.

Verizon and AT&T expressed general support for the revised eligible services list proposed by the Universal Service Administrative Co. to the FCC for funding year 2010. But the carriers asked the commission for tweaks to guarantee that the E-rate plan covers wireless data plans. Sprint Nextel also sought changes clarifying that mobile solutions which have fundamentally changed how people communicate should also be eligible. “As proposed, expanding or clarifying E-rate eligibility for text messaging, interconnected VoIP services, and wireless local area network services is particularly useful as schools and libraries increasingly rely on these next-generation products and services,” Verizon and Verizon Wireless said in a filing. But “the Commission should also adopt other ESL changes to reflect more accurately the evolving communications needs of schools and libraries,” Verizon said. AT&T asked the FCC to revise the guidelines to guarantee that wireless data services, filed under the telecommunications category, will be considered eligible services for E-rate reimbursement. “Some cellular data plans involve data transfer only, but do not involve Internet access,” AT&T said. “It is unclear, based on the nature of the services involved in these plans and USAC’s treatment of these services to date, how the cellular data-only plans should be categorized when applicants file for E-Rate discounts.” Verizon and Verizon Wireless also asked that the rules be revised to clarify that wireless routers are included on the eligible services list. The rules should be updated to make clear that the “array of learning tools” that make virtual classrooms possible and allow students to do research and homework outside classrooms are covered, they said. “Virtual classrooms enhance a school’s ability to offer all students opportunities to access the curriculum,” the companies said. Sprint said wireless telecommunications and Internet access services, as well as EVDO connection cards and related equipment should be eligible for E-rate funding. “The notion of ‘eligible locations’ is a wireline-centric concept which is increasingly divorced from the way Americans work, study and live,” Sprint said. IBM asked that wireless local area network controllers and virtualization software be listed as eligible, because “if the service is eligible; i.e., email, then the underlying technology for the delivery of the service is eligible.” The State E-rate Coordinators’ Alliance asked the FCC to reject a recommendation that for the first time password protected and Intranet pages be eligible for funding. “In 2009, in response to inquiries, USAC issued guidance clarifying that only public website pages were eligible under webhosting,” the alliance said. “The FCC, after meetings with affected vendors, then directed USAC to overturn their guidance and declare that password-protected pages were eligible. … USAC is now paying for educational portals, nearly in their entirety. We doubt this was the Commission’s intention when it deemed password-protected pages to be eligible.” The VON Coalition asked the FCC to endorse USAC’s recommendation increasing the availability of VoIP services for schools and libraries participating in the federal E-rate program. “The expanded availability of VoIP services will provide substantial savings for schools and libraries,” the coalition said.

Verizon and AT&T expressed general support for the revised eligible services list proposed by the Universal Service Administrative Co. to the FCC for funding year 2010. But the carriers asked the commission for tweaks to guarantee that the E-rate plan covers wireless data plans. Sprint Nextel also sought changes clarifying that mobile solutions which have fundamentally changed how people communicate should also be eligible.

Several senators questioned FCC nominee Julius Genachowski about his views on net neutrality in written follow-up questions after last week’s confirmation hearing (CD June 17 p.1). Some asked whether Genachowski’s support for net neutrality could end up preventing Internet service providers from blocking pornography or bootleg copyrighted material. “Net neutrality is about protecting the right of consumers to access lawful content, services and applications of their choice,” Genachowski said. He said he doesn’t consider a purpose of neutrality to be “preventing network operators from taking reasonable steps to block unlawful content.”

Embarq sued the government over $31.6 million in federal taxes that the company paid 1990 to 1994. In a lawsuit at the U.S. District Court in Kansas City, Kan., Embarq is seeking that amount plus interest. Embarq, which was part of Sprint Nextel at the time, said it unnecessarily counted money received from the Universal Service Fund toward its taxable income. The company filed refund claims with the IRS in 2004, but they were denied in 2007. An Embarq spokesman declined to comment.

Government needs to play a much larger role in getting broadband to the most rural consumers if this country “is serious” about making the Internet ubiquitous, said Daniel Mitchell, vice president of legal affairs for the National Telecommunications Cooperative Association, a trade association that represents small rural providers. He spoke at the Pike & Fischer broadband conference Thursday.

The FCC aims to open soon a proceeding that will “closely examine” wireless handset exclusives, acting Chairman Michael Copps said Thursday. In a keynote speech at the Pike & Fischer Broadband Summit, he also called for an overhaul of the Universal Service Fund and reflected on the agency’s development of a national broadband plan.

Congress has had “substantial” discussions with the Obama administration on crafting appropriate rules for the broadband stimulus grant program, due out in two weeks, House Communications Subcommittee Chairman Rick Boucher, D-Va., said Thursday at a Pike & Fischer conference. It’s pivotal how the agencies define “unserved” and “underserved” for purposes of awarding grants, Boucher said. “It is important we have a common-sense definition,” he said, suggesting that the absence of competition, prices out of reach of consumers and low speeds should be taken into account in defining “underserved.” “Unserved” should apply to areas with no service, he said, but the definition should be flexible enough not to penalize counties where a few people can get broadband service -- a situation that he dealt with when a county in his district was trying to get RUS grants. Stimulus funding will help deploy more broadband, but federal policymakers also need to consider other steps, such as revamping the universal service program to include broadband. Boucher said he is close to finalizing bipartisan USF legislation that has the support of many carriers and stakeholders. He said he also plans to co-sponsor a bill introduced by Rep. Anna Eshoo, D-Calif., that would require new federal highway projects to include conduit for broadband, a measure that may get included in federal highway reauthorization legislation. The Senate has a bill like Eshoo’s that was introduced this week by Democratic Sens. Amy Klobuchar of Minnesota and Mark Warner of Virginia.