Colleges’ Universal Service Fund (USF) costs will rise “astronomically” if the FCC moves fund contributions from a revenue- to a numbers-based approach, universities and a higher education group told Communications Daily. Colleges could have to choose between removing dormitory phones and paying the drastically higher fees, they said. Either way, there will be “negative financial, technical and social impact,” said Jeri Semer, executive director of the Association for Communications Technology Professionals in Higher Education (ACUTA). FCC chairman Kevin Martin last May said he has “long favored” a numbers-based model and plans to propose to reform USF contribution this fall (CD May 15 p1).

Windstream and CenturyTel asked the Arkansas Public Service Commission to suspend Alltel’s petition for wireless eligible telecom carrier (ETC) status because of doubts about its merits and the petition’s potential to affect the swelling federal high-cost universal service fund. The incumbents (Case 07-028-U) said Alltel didn’t show it needs universal service subsidies to build out wireless service in the rural territories at issue, and that Alltel already serves rural markets without subsidy. The PSC should look at how more ETC designations such as Alltel seeks may exacerbate problems from explosive growth in the federal universal service fund, they said.

To encourage rural broadband deployment, the FCC should redistribute rural wireless Universal Service Fund (USF) subsidies, Qwest said Wednesday. The Bell filed a plan with the FCC to alter the USF to bring broadband to unserved areas without raising USF fees and surcharges shown on phone bills. The plan would divert money from wireless competitive eligible telecommunications carriers (CETCs) by distributing CETC subsidies per household instead of per connection. About $1 billion of the $4 billion “high-cost” portion of the USF goes to wireless CETCs, but half of wireless customers are on family plans, averaging three lines per household, said Steve Davis, Qwest public policy senior vice president. A per-household system would free funds for use in upping broadband deployment, he said.

To encourage rural broadband deployment, the FCC should redistribute rural wireless Universal Service Fund (USF) subsidies, Qwest said Wednesday. The Bell filed a plan with the FCC to alter the USF to bring broadband to unserved areas without raising USF fees and surcharges shown on phone bills. The plan would divert money from wireless competitive eligible telecommunications carriers (CETCs) by distributing CETC subsidies per household instead of per connection. About $1 billion of the $4 billion “high-cost” portion of the USF goes to wireless CETCs, but half of wireless customers are on family plans, averaging three lines per household, said Steve Davis, Qwest public policy senior vice president. A per-household system would free funds for use in upping broadband deployment, he said.

Five telecom groups back the Federal-State Joint Board’s proposal to cap universal support to competitive eligible telecom carriers (CETCs), they told Senate Commerce Committee leaders in a June 25 letter. A cap “is a necessary first step toward comprehensive reform of the Universal Service Fund (USF),” said the International Telephone & Telecommunications Alliance, Western Telecommunications Alliance, National Telecommunications and Cooperative Association, USTelecom and OPASTCO. During 2001-2006, CETC support ballooned $15 million yearly to nearly $1 billion, the groups said, while funding for incumbent carriers has remained flat since 2003. CETC funding burdens consumers, the groups argued, adding that the money “is being spent inefficiently” by underwriting multiple wireless carriers vying to serve the same geographic areas.

Nearing completion of digital conversion of transmitters and equipment, public TV stations are moving to make sure that hundreds of thousands of analog audio and video content files are not left useless. Led by the Association of Public TV Stations (APTS), public broadcasters are seeking Congressional funding to create an American Archive to digitize public TV and radio libraries and offer them to the public. Public TV also will be lobbying to reform the copyright law.

The House today (Wednesday) is set to debate an appropriations bill (HR-2829) that would give the FCC $2 million to design a program explaining the shift from analog to digital TV. The FCC originally sought $1.5 million, but the Financial Services Subcommittee upped the sum out of concern about “low” public awareness about the transition. The overall bill could face a veto, since it contains provisions dealing with pay raises for members of Congress.

Nearing completion of digital conversion of transmitters and equipment, public TV stations are moving to make sure that hundreds of thousands of analog audio and video content files are not left useless. Led by the Association of Public TV Stations (APTS), public broadcasters are seeking Congressional funding to create an American Archive to digitize public TV and radio libraries and offer them to the public. Public TV also will be lobbying to reform the copyright law.

New Jersey and Pennsylvania saw action on VoIP preemption bills. The New Jersey legislature passed a bill to prohibit the Board of Public Utilities or any other state agency from regulating VoIP or any other IP-enabled telephone service, except in 4 very limited areas. If enacted, HB-4339 would limit state VoIP jurisdiction to 911 fees, telecom relay service fees, universal service fund contributions and intercarrier compensation. The bill makes clear that VoIP preemption wouldn’t affect the state’s authority over cable TV franchises. A similar VoIP preemption bill was introduced in the Pennsylvania Senate. SB-1000 would prohibit the Public Utility Commission or any other state agency from regulating VoIP except with respect to 911 fees, telecom relay service fees, universal service fees and intercarrier compensation. Supporters said VoIP needs a free playing field to encourage investment and promote growth. The FCC preempted state regulation of VoIP-to-VoIP calls but hasn’t yet ruled on VoIP-to-wireline calls.

The Arkansas Public Service Commission staff proposed a July 17 public hearing on procedural and administrative rules for the state universal service high cost fund, created by a 2007 state law as a more targeted replacement for an old state universal service fund. Rural incumbent phone companies proposed draft rules based on the old fund’s administrative rules. The companies (Case 07-062-R) said they encountered no opposition but said some carriers might seek rule amendments or expansion on issues of particular concern to them, urging their proposal be seen as a starting point. Staff proposed that any telecom provider filing comments by a July 6 deadline be considered a participant in the case.