Changes to the universal service fund program need to be “fair and equitable for all consumers, no matter where they live,” the Independent Telephone and Telecommunication Alliance said in a letter to House Commerce Committee Chairman John Dingell, D-Mich. The group, which represents mid-size local exchange carriers working mainly in rural areas, praised Dingell’s comments calling the fund a “fundamental American value” at a House hearing (CD June 25 p1). Changes are needed in light of the advance of broadband, ITTA President Curt Stamp said in his letter. Congress is likely to get serious about USF reform soon, now that consumers are paying an 11.4 percent surcharge on their phone bills, said Free State Foundation President Randolph May, who testified at the hearing. Several members cited the 11.4 percent surcharge as an “impetus for getting on with the business of reform,” May said in a blog Friday. “Consumers have finally begun to pay attention,” he said.

Sen. John McCain, R-Ariz., has accomplished little on communications, ex-FCC chairman William Kennard said Wednesday in a debate hosted by the Media Access Project. Kennard spoke for Sen. Barack Obama, D-Ill., while former NTIA official John Kneuer backed McCain. Obama has a significantly more detailed technology policy, despite a shorter resume, Kennard said. McCain is opposed to Washington “micromanagement” of the industry, and has been dealing with communications issues for years, Kneuer said. The industry has a “stark, stark choice,” Kennard said.

Sen. John McCain has accomplished little on communications, ex-FCC chairman William Kennard said Wednesday in a debate hosted by the Media Access Project. Kennard spoke for Sen. Barack Obama, D-Ill., while former NTIA official John Kneuer backed McCain, R-Ariz. Obama has a significantly more detailed technology policy, despite a shorter resume, Kennard said. McCain is opposed to Washington “micromanagement” of the industry, and has been dealing with communications issues for years, Kneuer said. The industry has a “stark, stark choice,” Kennard said.

Sen. John McCain has accomplished little on communications, ex-FCC chairman William Kennard said Wednesday in a debate hosted by the Media Access Project. Kennard spoke for Sen. Barack Obama, D-Ill., while former NTIA official John Kneuer backed McCain, R-Ariz. Obama has a significantly more detailed technology policy, despite a shorter resume, Kennard said. McCain is opposed to Washington “micromanagement” of the industry, and has been dealing with communications issues for years, Kneuer said. The industry has a “stark, stark choice,” Kennard said.

The FCC would be banned from implementing its newspaper- broadcast cross-ownership rules, under an appropriations bill approved Wednesday in the House Appropriations Committee. The provision, promoted by Financial Services Subcommittee Chairman Jose Serrano, D-N.Y., drew only mild disapproval from subcommittee ranking member Ralph Regula of Ohio.

The FCC will add $600 million in unused Universal Service Fund money from funding years 2002-2004 to the subsidy pot available to schools and libraries for 2008, the agency said late Monday. In March, the Universal Service Administrative Co. estimated schools and libraries would need $4.3 billion this year (CD March 4 p7).

The universal service fund should be expanded to cover broadband services, members on both sides of the aisle said in a House Telecom Subcommittee hearing Tuesday. Differences emerged over how to revamp the program, with Democrats supporting extension of the fund for broadband deployment, an idea not wholly endorsed by Republicans. The hearing reflected a sense of increased urgency about the need for change and a growing consensus that support for broadband services should be part of reform discussions, said members, industry sources and Hill staffers. Passage of legislation is unlikely in the 110th Congress, but proposed legislation and further hearings are building a record for action in the next Congress, where an anticipated increase of Democrats likely will drive momentum for making broadband deployment a national priority, according to interviews with staff and industry. “Congress, not the FCC, is better suited to make the tough political choices on how best to reform the system,” said House Commerce Committee Chairman John Dingell of Michigan, indicating the lead role Congress is likely to play in coming months to revamp the program. Another hearing is likely next fall examining specific problems with the program, including focus on mismanagement that in the past has caused significant waste of taxpayer money, Hill sources said. The high error payment rate in the schools and libraries E-rate fund needs congressional attention, said Rep. Cliff Stearns, R-Fla., subcommittee ranking member. Stearns co-sponsored a USF reform bill with Rep. Joe Barton, R-Texas, that was introduced Tuesday and reflects concern over management of the fund. The bill includes provisions that would mandate economic analysis of decisions and how they comply with the Communications Act. The bill also would require a review of the financial interests of any newly appointed member of the joint board that oversees the fund with the goal of preventing any conflicts of interest. Universal service could be a tool for increasing broadband, Subcommittee Chairman Ed Markey of Massachusetts said. “Any overarching policy blueprint for universal broadband will, by necessity include universal service as a component.” “I think the universal service program needs to be blown up like the Death Star,” said Rep. Michael Doyle, D-Pa., in one of many references to witness and film maker George Lucas, who runs an education foundation and urged Congress to continue supporting subsidies for broadband for schools.

The universal service fund should be expanded to cover broadband services, members on both sides of the aisle said in a House Telecom Subcommittee hearing Tuesday. Members agreed the fund needs a substantial overhaul, a view backed by witnesses advocating help for low-income consumers in rural areas and urging further USF support for schools. Differences emerged over how to revamp the program, with Democrats supporting extension of the fund for broadband deployment, an idea not wholly endorsed by Republicans.

Democratic FCC commissioners said Monday that a study on broadband deployment in North Carolina illustrates the need for federal government involvement in a national broadband strategy. At a New America Foundation forum, Commissioners Michael Copps and Jonathan Adelstein said such a plan should be based on a partnership between the public and private sectors.

Democratic FCC commissioners said Monday that a study on broadband deployment in North Carolina illustrates the need for federal government involvement in a national broadband strategy. At a New America Foundation forum, Commissioners Michael Copps and Jonathan Adelstein said such a plan should be based on a partnership between the public and private sectors.