A proposed White House FY 2008 budget would double FCC spending for oversight of the Universal Service Fund, add $2 billion in interoperability funds and spend $426.3 million on the digital converter box program, according to documents submitted Mon. to Congress. OMB Dir. Rob Portman called the President’s budget request “credible” in a briefing with reporters. Portman said he consulted with Congress before drafting the document so he could be responsive to concerns.

A special access provision included in the AT&T- BellSouth merger drew fire during the FCC’s visit to Capitol Hill Thurs. for the first hearing in the 110th Congress. Senate Commerce Committee Chmn. Inouye (D-Hawaii) asked Martin why he voted for the merger if he had qualms about the legality of the provision, referring to a statement Martin released after the merger. “If you felt so strongly, don’t you think you had an obligation to withhold your vote?”

Backers of the Missoula plan to reform FCC intercarrier compensation rules reached terms with 5 states guaranteeing “early adopter” states that already have cut intrastate access charges won’t be hurt by broader changes. Regulators from Ind., Me., Neb., Vt. and Wyo. sent the FCC a letter endorsing the agreement, filed as an amendment to the plan.

FCC officials have been working long hours in preparation for Thurs.’s Senate Commerce Committee hearing, at which all 5 Commissioners will testify. The hearing marks the beginning of the Democratic Congress’ commitment to stronger FCC oversight; senators are expected to lob some tough questions, Hill sources said. The House Commerce Committee plans a similar hearing with equally close scrutiny in mid-Feb., a committee spokeswoman said.

FCC officials have been working long hours in preparation for Thurs.’s Senate Commerce Committee hearing, at which all 5 Commissioners will testify. The hearing marks the beginning of the Democratic Congress’ commitment to stronger FCC oversight; senators are expected to lob some tough questions, Hill sources said. The House Commerce Committee plans a similar hearing with equally close scrutiny in mid-Feb., a committee spokeswoman said.

Numbers-based collection of federal Universal Service Fund (USF) contributions would be simpler to administer and easier for consumers to understand, said an industry study released Tues. The Numbers Coalition, made up of wireless, cable and telecom associations, said the per-number fee would be about $1.20 per month, about what residential wireline consumers now pay. Low-income Lifeline customers could be exempted, with adjustments to ensure against unreasonable assessment against low-volume and low-cost services, the study said. “The numbers-based USF fee does not discourage telephone usage and thus increases consumer welfare as a whole,” the study said: “Consumers would be able to make more long-distance calls for their collar than they do today.”

Separated ideologically, 2 influential D.C. think tanks are united in their disdain for govt. as shown in their 2007 agendas for Congress, the agencies and the states. The Progress & Freedom Foundation (PFF) and the Center for Democracy & Technology (CDT) generally emphasize a hands-off approach in the agendas, which are heavy on telecom and Internet issues. They differ in emphasis between industry freedom from regulation and consumer protection from intrusive business and govt. practices. The Electronic Communications Privacy Act needs revamping in light of advancing technology, especially “networked storage of e- mail,” and should get Hill hearings, CDT said. “Serious questions remain” about the Bush Administration’s domestic surveillance after its promise to submit to the Foreign Intelligence Surveillance Court, CDT said. It supports HR- 11, affirming Foreign Intelligence Surveillance Act (FISA) “exclusivity,” and opposes other moves to amend FISA before there’s a “full understanding” of its current interpretation. Extending the “design mandate” of the Communications Assistance for Law Enforcement Act by expanding its application to a “broad range of Internet services” would only mean more identity theft, the group said. Data retention requirements on telcos and ISPs “threaten to place unnecessary burdens” on industry and “jeopardize the privacy of innocent users,” and should be avoided. Net neutrality doesn’t have to be all-or-nothing, CDT said, calling for “specific and targeted legislation” that focused on the “portion of broadband networks dedicated to the Internet.” But simply banning the blocking of sites and services is “inadequate,” and Congress should investigate actions “short of outright blocking” that may discriminate, CDT said. “Closed, proprietary services” largely deserve a pass on regulation, and more competition or network capacity “jumps” should lead Congress to reevaluate neutrality mandates, the group said. On copyright, CDT advocated less intervention by Congress. Legislators should keep an eye on World Intellectual Property Organization broadcast treaty negotiations, which may require changes to U.S. law, the group said. Congress shouldn’t “rush through” broadcast flag legislation, and shouldn’t give the FCC new authority through the audio flag or design mandates. PFF will push for “more focus on antitrust enforcement instead of preemptive regulations” from agencies regarding communications and net neutrality. The Universal Service Fund and spectrum allocation should have a “more market-oriented approach,” the group said. It said competition in broadband markets and operators’ desire to “maximize network use” will “ensure consumers’ needs will be met.” Govt. should avoid “broadcast-era content controls” on Internet and mobile media platforms, PFF said. PFF wants “limited,” “targeted” telco and ISP data preservation for short times, rather than open- ended requirements to retain personal information, which it said would hurt the economy and endanger privacy.

Two influential D.C. think tanks released 2007 tech agendas for Congress, the agencies and the states that are heavy on Internet and telecom issues. The organizations, the Progress & Freedom Foundation (PFF) and the Center for Democracy & Technology (CDT), both generally emphasize a hands-off approach to the Internet. They differ in emphasis between industry freedom from regulation and consumer protection from intrusive business and govt. practices.

A N.Y. PSC staff report on broadband said the vast majority of state households had broadband service available and the 44% overall broadband penetration statewide is well above the national average, but thinly populated rural areas still pose a major challenge to universal broadband service. Gov. Eliot Spitzer (D) in his first state-of-the-state address said he wants N.Y. to have universal broadband access by 2010, when his term ends. The report suggested approaches for making broadband service universal, including financing broadband deployment from state revenue and pushing for universal service fund changes at the FCC to subsidize broadband service. Low-density areas likely won’t produce revenue to justify wireline broadband outlays, the report said, urging that wireless or satellite-based technologies be considered. It said another major problem in making broadband universal is identifying populations with no broadband access. It said available data is broken out by zip codes but population density can vary greatly within a code. The report recommended forming a multiagency broadband task force to pinpoint areas that lack broadband access and which are unlikely to ever see it without subsidy or use of alternative technology.

A N.Y. PSC staff report on broadband said the vast majority of state households had broadband service available and the 44% overall broadband penetration statewide is well above the national average, but thinly populated rural areas still pose a major challenge to universal broadband service. Gov. Eliot Spitzer (D) in his first state-of-the-state address said he wants N.Y. to have universal broadband access by 2010, when his term ends. The report suggested approaches for making broadband service universal, including financing broadband deployment from state revenue and pushing for universal service fund changes at the FCC to subsidize broadband service. Low-density areas likely won’t produce revenue to justify wireline broadband outlays, the report said, urging that wireless or satellite-based technologies be considered. It said another major problem in making broadband universal is identifying populations with no broadband access. It said available data is broken out by zip codes but population density can vary greatly within a code. The report recommended forming a multiagency broadband task force to pinpoint areas that lack broadband access and which are unlikely to ever see it without subsidy or use of alternative technology.