Rep. Boucher (D-Va.) asked OPASTCO to promote his Universal Service Fund (USF) bill (HR-2054) on the Hill Wed. at the group’s legislative conference. The measure would revamp the USF program by widening the contribution base to include all those providing network connections, and expand services to pay for broadband. “We are in a hypercompetitive global market,” Boucher told OPASTCO members, stressing the importance of getting faster broadband deployment throughout the country, especially in rural areas. USF is under stress “today as never before,” Boucher said, adding that he and the bill’s chief co-sponsor, Rep. Terry (R-Neb.), have worked 3 years on “comprehensive” legislation to deal with problems in the system. Boucher’s bill has 11 co-sponsors, all but one Republicans. It has attracted support from AT&T, Qwest, Embarq and Alltel and NTCA, Boucher said, and the challenge is to encourage trade groups that like the bill to urge other lawmakers to sign up. “This bill will not be passed into law without your personal assistance,” Boucher told OPASTCO members. OPASTCO Pres. John Rose said the group applauds the bill but thinks it wise to pursue regulatory as well as legislative fixes.

The Ia. Utilities Board (IUB) urged the FCC to move “as quickly as possible” to ease a potential numbering crisis caused by the state’s free-call services. Action on several pending FCC proceedings could ease “continued strains on numbering resources in Iowa,” the state regulators said. “Recent activities by a voice over Internet service provider, partnering with rural ILECs, providing free voice mail boxes to customers nationwide via the Internet has had a dramatic impact on numbering resources in two of Iowa’s area codes,” the IUB said. If the trend continues, at least one Iowa area codes could be declared in “jeopardy” of filling up by the end of 2007 or early 2008, the regulators said. “Nearly 2 million numbers have been assigned in just 16 rate centers in Iowa,” the IUB said, though “the populations of these rate centers range from 145 to 2,023 people.” The board has voiced concern to Iowa providers about numbering impact but “unfortunately, our tools for controlling this problem are somewhat limited,” the IUB told the FCC. Among agency proceedings relevant to Iowa is Doc. 06-14, in which state commissions seek delegated authority to implement thousands- block number pooling (TBNP) in all exchanges, IUB said in a letter dated April 30 but posted Tues. on the FCC website. Another proceeding, Doc. 95-116, would let states implement local number portability (LNP), the letter said: “It is our understanding that the switch upgrades necessary for LNP also facilitate TBNP.” The board also urged action on a numbers or connections-based contribution methodology for the Universal Service Fund. “Companies like those in Iowa that are utilizing large amounts of numbers pay nothing for those numbers,” IUB said: “Implementing a numbers based contribution methodology could force companies to be more conservative in their requests for numbers, or otherwise remove opportunities for arbitrage.”

The Ia. Utilities Board (IUB) urged the FCC to move “as quickly as possible” to ease a potential numbering crisis caused by one of the state’s free-call businesses. Action on several pending FCC proceedings could ease “continued strains on numbering resources in Iowa,” the state regulators said. “Recent activities by a voice over Internet service provider, partnering with rural ILECs, providing free voice mail boxes to customers nationwide via the Internet has had a dramatic impact on numbering resources in two of Iowa’s area codes,” the IUB said. If the trend continues, at least one Iowa area code could be declared in “jeopardy” of filling up by the end of 2007 or early 2008, the regulators said. “Nearly 2 million numbers have been assigned in just 16 rate centers in Iowa,” the IUB said, though “the populations of these rate centers range from 145 to 2,023 people.” The board has voiced concern to Iowa providers about numbering impact but “unfortunately, our tools for controlling this problem are somewhat limited,” the IUB told the FCC. Among agency proceedings relevant to Iowa is Doc. 06-14, in which state commissions seek delegated authority to implement thousands- block number pooling (TBNP) in all exchanges, IUB said in a letter dated April 30 but posted Tues. on the FCC website. Another proceeding, Doc. 95-116, would let states implement local number portability (LNP), the letter said: “It is our understanding that the switch upgrades necessary for LNP also facilitate TBNP.” The board also urged action on a numbers or connections-based contribution methodology for the Universal Service Fund. “Companies like those in Iowa that are utilizing large amounts of numbers pay nothing for those numbers,” IUB said: “Implementing a numbers based contribution methodology could force companies to be more conservative in their requests for numbers, or otherwise remove opportunities for arbitrage.”

FCC Chmn. Kevin Martin plans to proceed as soon as the fall on a proposal to change how telecom providers contribute to the Universal Service Fund, he said Mon. after a speech. Martin told reporters he is waiting for a U.S. Appeals Court, D.C., decision on a related universal service issue before teeing up a proposal to replace the revenue-based contribution system with one relying on phone numbers.

FCC Chmn. Martin backs “exploring” inclusion of broadband in the high-cost Universal Service Fund (USF), he said in a letter to House Telecom Subcommittee Chmn. Markey (D-Mass.). Martin declined to answer Markey’s April 2 query (CD April 3 p7) as to whether Martin favors using USF subsidies for broadband -- a strategy explored in several legislative proposals on Capital Hill.

FCC Chmn. Martin backs “exploring” inclusion of broadband in the high-cost Universal Service Fund (USF), he said in a letter to House Telecom Subcommittee Chmn. Markey (D-Mass.). Martin declined to answer Markey’s April 2 query as to whether Martin favors using USF subsidies for broadband -- a strategy explored in several legislative proposals on Capital Hill.

Communications services pay twice as much in taxes and fees as makers of clothing, sporting goods and other products, Heartland Institute said. Taxes and fees on cable and phone service in 59 U.S. cities cost households about $20.51 a month on average, the study said. The Chicago-based group studied cable franchise and PEG access fees, the Universal Service Fund fee, state 911 taxes and the like, it said. The burden varied by state, ranging from $10.93 in Lansing, Mich., ,to $34.27 in Jacksonville, Fla., Heartland Institute said. Taxes and fees also vary by service type, the study said. A typical wireline call is taxed at 17.23%; a wireless call, billed at the same rate, is taxed at 11.78%. The group urged govt. at all levels to cut and harmonize fees and taxes. It supports statewide video franchising. The nonprofit research group is not affiliated with any “political party, business or foundation,” it said. An official there said companies and industry groups don’t contract for the Institute’s studies.

Chmn. Martin plans to ask for a vote on revamped E-911 location rules at the May 31 agenda meeting. Martin also will seek a vote on a Katrina report and order, which grows out of a June 2006 notice of proposed rulemaking. Also on the public safety front, sources said, notices of apparent liability against Sprint-Nextel, Alltel and U.S. Cellular for violating location capable handset rules are on circulation. Each notice proposes fines in excess of $1 million for violation of a mandate that 95% of their subscribers have location-capable handsets by Dec. 31, 2005 (CD Jan 8 p1).

Democrats are scrambling to fill broadband gaps in rural America, with House Telecom Subcommittee Chmn. Markey (D- Mass.) drafting a bill based partly on a successful state program that mapped high-speed service holes. Markey’s bill would have NTIA draw and maintain the map, to be posted on the Internet and searchable by users, according to a copy of the discussion draft. A hearing on the bill is set next Thurs.

The FCC sent 194 E-rate applications back to the Universal Service Administrative Co. (USAC) for reconsideration of decisions to deny them. The Commission released 4 orders granting the appeals by school districts, libraries and other applicants: (1) 56 applications had been denied because applicants were deemed unable to use the technology they sought or lacking funds to pay for their portion of the discounted service. (2) 59 of the returned applications had been denied for seeking funds for ineligible services. USAC is required to deny requests if 30% or more of the funds would be for ineligible services. The FCC said USAC should consider funding the remaining 70% or in some cases waive the 30% cutoff. (3) 62 returned applications had been denied for clerical errors on forms or entering agreements with contractors too soon. (4) 17 applications were returned after USAC found applicants either were ineligible for E-rate support or violated the 30% rule. The FCC said USAC should consider how state laws differ in interpreting eligibility. In a related order, the FCC partly granted an appeal filed by Macomb Intermediate School Dist. in Mich. The school district’s application was denied because it didn’t select the most cost-effective service. The FCC said USAC should revisit the decision because Macomb is still entitled to some funding.