Broadband should be part of the Universal Service Fund (USF) program, rural senators told a Thurs. Senate Commerce Committee hearing. The FCC can do that, but Comr. Copps doubts he can get the other 2 votes needed for a rulemaking clarify that broadband can be included in USF, he said. Panelists favoring USF-sponsored broadband said congressional action would be the quickest route.

Hundreds of students will get taken to school each month on copyright law and financial incentives, in a larger RIAA campaign to spur settlements before suing for illegal file- sharing. Details of the quick-settlement plan pitched to commercial ISPs was recently leaked and drew criticism as a legal end-run (WID Feb 15 p4), but details on university offers were missing. RIAA will make students pre-suit settlement offers on a different schedule -- 400 at various schools monthly -- than those recently offered to commercial ISP customers, which go out on a “rolling basis,” said RIAA Gen. Counsel Steve Marks in a press conference Wed.

Witnesses for a March 1 hearing on the Universal Service Fund in the Senate Commerce Committee include: FCC Comrs. Copps and Tate; Larry Landis, Ind. Comr.; John Burke, Vt. Public Service Board; Billy Jack Gregg, dir.-Consumer Advocate Div., W. Va. Public Service Commission; David Crothers, exec. Vp-N.D. Assn. of Telecom Cooperatives; Brian Staihr, policy dir.-Embarq; Richard Massey, exec. vp-Alltel; Tom Tauke, exec. vp-Verizon; and Tom Simmons, vp-Midcontinent Communications.

Cyren Call CEO Morgan O'Brien’s spectrum proposal largely could solve America’s broadband access problems and deliver a fully interoperable safety network, he said. On a Hill panel at the New America Foundation, O'Brien said Fri. he'd have more details of the proposal Mon. in a filing with the FCC. It will answer questions about how the company can succeed financially serving public and private needs, he said.

Cyren Call CEO Morgan O'Brien’s spectrum proposal largely could solve America’s broadband access problems and deliver a fully interoperable safety network, he said. On a Hill panel at the New America Foundation, O'Brien said Fri. he'd have more details of the proposal Mon. in a filing with the FCC. It will answer questions about how the company can succeed financially serving public and private needs, he said.

A Cingular request to be certified for universal service payments in Ga. drew strong opposition from the wireline industry, in comments filed Tues. at the FCC. Verizon said Cingular’s application for designation as an eligible telecom carrier (ETC) “is further evidence of the urgent need for reform of the High Cost Fund… Cingular’s own business strategy demonstrates that it does not need federal subsidies to offer service in Ga.” Frontier Communications said Cingular already provides service in Ga. without high cost support, “having been motivated to do so by the economic forces of profit and competition with other providers.” TDS Telecom said Cingular’s petition “makes little effort to demonstrate that it will use universal service support to serve the high-cost customers for which the Fund was intended.” Giving Cingular ETC status “will trigger an ‘arms race’ among other national wireless carriers to seek ETC designation,” Frontier said. The Independent Telephone & Telecom Alliance (ITTA), filing jointly with the Western Telecom Alliance, urged the FCC to judge Cingular’s petition “in the context of the larger proceeding on universal service reform.” Otherwise, the FCC “will continue to make within the context of ETC applications incremental decisions toward one direction, while at the same time considering universal service modifications that take a far different direction,” the groups said, referring to Cingular’s seeking ETC status in Va. OPASTCO said “the costs of [Cingular’s] designation would far outweigh any benefits to the public… As the largest wireless carrier in the United States, Cingular’s designation as an ETC in Ga. and other states could ultimately cause the High-Cost universal service program to reach an unsustainable level, thereby jeopardizing rural ILECs’ provision of affordable, high-quality, ubiquitous service to rural consumers.” CTIA said Cingular “meets the requirements for designation as an ETC” because it’s not subject to jurisdiction by state regulators. Sec. 214 of the Telecom Act gives the FCC authority to grant ETC status to carriers that aren’t governed by state commissions, Cingular said: “Since Cingular is a commercial mobile radio service (CMRS) provider not subject to the authority of the [Ga. PSC], the FCC has the authority to grant ETC status to Cingular.” CTIA said it supports the petition, noting the wireless carrier offers all 9 services required by the FCC for ETC status. “Cingular has committed to use available federal high-cost support for its intended purposes -- the construction, maintenance and upgrading of facilities serving the high-cost and rural areas,” CTIA said.

The greatest challenge for IPTV is the cost of set-top boxes, said several panelists at Satellite 2007. Until the prices of the set-top boxes come down, especially MPEG-4 HD boxes, it will be hard to persuade cable, telcos and DBS to go into the market full speed, and to persuade consumers to give the service they subscribe to, they said. Aggravating that cost are the requirements imposed by programmers that haven’t seen IPTV’s value, participants said. Brian Morrow, COO-IPTV solutions for Eagle Broadband, said each programmer has a different set of restrictions on how it content can be used. But that will change, said New Earth Pres. Arman Musey: When they see the value of IPTV, programmers will get together and make their requirements more uniform.

FCC Chmn. Martin said Tues. he sees reverse auctions as a solution for stemming the “unsustainable” growth of the Universal Service Fund caused by increased competitive providers. Martin told the Federal State Joint Board on Universal Service that he never supported giving USF subsidies to multiple recipients in an area, and just what he feared has happened -- a sharp rise in USF subsidies caused by the increase in competitive rural carriers.

Regulatory burdens plus normal market uncertainties may keep investors from providing capital needed to upgrade telecom networks for universal broadband service, Qwest CEO Richard Notebaert told a NARUC audience. “Our sector is full of opportunities created by convergence and new technologies, but it’s also an extremely dynamic environment that can change direction quickly,” he said. Telecom companies are investing to bring broadband into every home, Notebaert said: “It’s an enormous capital outlay, and investors are doubting whether we can ever achieve a reasonable return.” Two regulatory areas heighten investor doubt -- video franchising and network neutrality, he said: “Video competition requires an enormous capital investment, but the need to negotiate franchises with hundreds of municipalities has led the investor community to wonder if there will be a return,” especially with some of the onerous conditions cities have tried on new entrants. Chances of Internet regulation in the name of network neutrality also are affecting capital deployment, Notebaert said: “Network neutrality is a solution for a problem that doesn’t exist.” Should anticompetitive Internet bias arise, existing FCC rules and laws can address it, he said: “There are enough natural market risks to broadband investment, so why add an artificial layer of uncertainty?” It’s high time to revisit universal service policy in the broadband age, he said: “Universal voice service has been accomplished. We won. We don’t need voice subsidies anymore. Why subsidize voice overbuilds when so many rural areas lack broadband access? Universal broadband service is what the fund should be supporting now.”

FCC bureau chiefs at NARUC outlined their key telecom issues for 2007. Don Stockdale, FCC Wireline Bureau deputy chief, said his bureau will focus on 5 major issues for 2007 -- protecting customer proprietary network information (CPNI), reform of universal service fund distribution through reverse auctions or other means, reform of universal service fund contributions through number-based formulas or other means, VoIP number portability and intercarrier compensation reform. Wireless Bureau Chief Fred Campbell said his big issues for 2007 include an upcoming spectrum auction of 60 MHz in the 700 MHz band, addressing concerns of rural consumers and alarm companies in the transition from analog to digital cellular and determining whether to deem early termination fees rates, rendering them exempt from state regulation, or part of the “other terms and conditions” states can regulate. Catherine Seidel, chief of the Consumer & Intergovernmental Affairs Bureau, said her bureau’s top 2007 priorities are reform of relay service compensation to accommodate video, IP relay and other new technologies, ensuring E-911 access for IP and video relay, promoting Lifeline, addressing local consumer protection regulations over wireless services and managing consumer issues arising from the transition from analog TV to digital TV by Feb. 2009. In fiscal 2005, 40 million numbers were added to the national no-call telemarketing registry, which now includes 138 million phone numbers, she said. Kris Monteith, Enforcement Bureau chief, said a priority this year is stamping out “pretexting” and other frauds data brokers use to obtain customer call records, and ensuring telecom carriers adequately protect subscriber confidentiality. She said the FCC has subpoenaed online data brokers that fraudulently got phone records, and penalized brokers ignoring subpoenas. She said the FCC has asked a number of carriers how they live up to their duty to protect sensitive customer data. Ken Moran, acting chief of the Public Safety & Homeland Security Bureau, said a major issue this year will be improving emergency communications between responders and with the public. He noted progress in the 800 MHz rebanding proceeding but noted that satisfying carrier and public safety agency requests to alter the reconfiguration process for the channels earmarked for the National Public Safety Planning Advisory Committee will extend the transition process past the original June 2008 target date. Other important issues for 2007, he said, will be developing a public emergency warning system for cellphones, working with states on keeping E-911 operational during disasters and becoming a central clearinghouse for communications information relevant to first responders, 911 centers and hospitals.