A hearing on the Universal Service Fund is set March 1 before the Senate Commerce Committee, Chmn. Inouye (D-Hawaii) announced late Mon.
Verizon isn’t seeking “sweeping” telecom legislation this Congress, Exec. Vp Public Affairs Tom Tauke told reporters Mon. The 2007 focus is getting broadband to consumers who lack it, but that doesn’t demand major legislation, he said. Congress simply may need to refocus existing grant and loan programs, Tauke said.
Phased-in competitive bidding could slow the growth of the Universal Service Fund (USF) while easing concerns of incumbent rural telcos about shortfalls, Verizon and Verizon Wireless told the Federal-State Joint Board on Universal Service in a proposal filed late Fri. The Joint Board is expected to consider Verizon’s proposal at a Feb. 20 meeting during the NARUC winter meeting in D.C. The Joint Board plans to look at competitive bidding and other ideas for easing demands on the USF during that en banc meeting. The board includes FCC Chmn. Martin, Comrs. Tate and Copps and several state commissioners.
Conflicts in the communications industry keep it from achieving legislative goals as well as industries like farming and transportation, said panelists at an Alliance for Public Technology (APT) panel on achieving universal broadband Fri. Carriers, content providers and tech companies squabble, and none has a trusting relationship with regulators or legislators -- preventing the kind of public- private partnerships needed to gain full adoption, they said. They criticized govt. agencies but called govt. participation important, if only to set a national agenda. Some decried the incompleteness of the FCC’s data collection, saying it could become a big political issue this Congress.
A federal appeals court indicated it may ask the FCC to reconsider parts of an order requiring VoIP providers to contribute to the Universal Service Fund. A 3-judge panel of the U.S. Appeals Court, D.C. questioned possible disparities in the FCC’s treatment of VoIP carriers in relation to other telecom carriers and asked the agency for legal justification for several sections of the order approved last summer (CD June 22 p1), during oral argument Fri.
A federal appeals court indicated it may ask the FCC to reconsider parts of an order requiring VoIP providers to contribute to the Universal Service Fund. A 3-judge panel of the U.S. Appeals Court, D.C. questioned possible disparities in the FCC’s treatment of VoIP carriers in relation to other telecom carriers and asked the agency for legal justification for several sections of the order approved last summer (WID June 22 p8), during oral argument Fri.
Conflicts in the communications industry keep it from achieving legislative goals as well as industries like farming and transportation, said panelists at an Alliance for Public Technology (APT) panel on achieving universal broadband Fri. Carriers, content providers and tech companies squabble, and none has a trusting relationship with regulators or legislators -- preventing the kind of public- private partnerships needed to gain full adoption, they said. They criticized govt. agencies but called govt. participation important, if only to set a national agenda. Some decried the incompleteness of the FCC’s data collection, saying it could become a big political issue this Congress.
The Universal Service Fund is too bloated to help expand broadband deployment, FCC Comr. McDowell told an NTCA conference in Orlando. “The Fund simply cannot afford to subsidize broadband connectivity under its current structure,” McDowell said: “The bitter truth is that we can’t keep asking more and more folks to prop up a failing system. Fundamental reform is necessary.” The FCC last summer voted to expand the pool of USF contributors, but “the contribution factor that was supposed to have declined as a result of the FCC’s action is back on the rise again,” he said: “Like a fever that initially responds to treatment only to rage again the next day, the factor initially declined from about 11 percent to 9 percent once we broadened the base. But for the first quarter of 2007 it has risen again to 9.7 percent -- and early indications are that the second quarter figure could spike to over 11 percent. If bold action is not taken soon, this fever will threaten the patient’s life.” The contribution factor is the percentage of eligible revenue that telecom companies must contribute to the USF, and its rise usually reflects a rise in USF disbursements. Wireless spectrum is one hope for broadband deployment in rural areas served by NTCA members, said McDowell: “I hope that you'll be active participants in the 700 MHz auction. The Commission is doing its part to help you move away from reliance on the Universal Service Fund by opening new windows of opportunity for the construction of new delivery platforms with new technologies and robust competition.”
The Universal Service Fund is too bloated to help expand broadband deployment, FCC Comr. McDowell told an NTCA conference in Orlando. “The Fund simply cannot afford to subsidize broadband connectivity under its current structure,” McDowell said: “The bitter truth is that we can’t keep asking more and more folks to prop up a failing system. Fundamental reform is necessary.” The FCC last summer voted to expand the pool of USF contributors, but “the contribution factor that was supposed to have declined as a result of the FCC’s action is back on the rise again,” he said: “Like a fever that initially responds to treatment only to rage again the next day, the factor initially declined from about 11 percent to 9 percent once we broadened the base. But for the first quarter of 2007 it has risen again to 9.7 percent -- and early indications are that the second quarter figure could spike to over 11 percent. If bold action is not taken soon, this fever will threaten the patient’s life.” The contribution factor is the percentage of eligible revenue that telecom companies must contribute to the USF, and its rise usually reflects a rise in USF disbursements. Wireless spectrum is one hope for broadband deployment in rural areas served by NTCA members, said McDowell: “I hope that you'll be active participants in the 700 MHz auction. The Commission is doing its part to help you move away from reliance on the Universal Service Fund by opening new windows of opportunity for the construction of new delivery platforms with new technologies and robust competition.”
Prepaid calling card providers must start making reports to the FCC and transport service providers now that OMB approved the reporting requirements contained in a June 30 order. The order, which required prepaid services to pay regulatory fees (CD July 5 p9), also required them to report their interstate usage and call volumes to carriers from which they purchase transport service. They also have to file quarterly certifications with the FCC that include: (1) Percent of intrastate, interstate and international calling card minutes. (2) Amount of revenue for interstate and international service, which are the areas subject to federal universal service fees. (3) A statement attesting they've made Universal Service Fund contributions. (4) Statement that they have made required reports to transport services.