Some industry groups are using an FCC notice of proposed rulemaking on USF contribution methodology to argue for moving to a number-based method of calculating payments -- a question the FCC never raised, NASUCA claimed. The VON Coalition, CTIA and other groups said tweaks to current methodology will fall far short of needed reform.

Emergency alert legislation could be enacted as part of the port security bill moving through the Senate, key House and Senate committee staffers said Fri. at an FCBA lunch. Sen. DeMint (R-S.C.) introduced the Warning, Alert & Response Network (WARN) Act as an amendment to the port bill (HR-4954) Thurs. The Senate Commerce Committee approved the Warn Act by unanimous consent Oct. 20. It establishes a network for transmitting alerts across communications including cellphones, BlackBerrys, Internet, TV, radio and satellite TV.

The jury’s still out on whether FCC Chmn. Martin’s more closed style of management (CD Sept 5 p1) will have a long- term impact on the agency, according to industry officials, many of them former FCC employees. Some Washington insiders see possible harm to the agency, others think changes under Martin reflect normal management adjustments common to new chief executives.

George Mason U. Prof. Thomas Hazlett deserves a D for poor research, said 2 rural telecom officials unhappy with his characterization of rural telecom companies as high- spending (CD July 20 p7). Michael Fox of RT Communications and Jeffry Smith of GVNW Consulting issued a “response” to Hazlett: (1) “Rural is different,” with facilities costs that can’t be compared to urban areas. (2) The Universal Service Fund is needed to build rural infrastructure. (3) The USF isn’t a tax. (4) Growth in the USF “has been fueled by competitive entrants” not incumbents. (5) “Erroneous assumptions… lead to bad conclusions.” The authors who said they produced the response on their own -- concluded: “If the professor were a student, he might receive an A or B for his carefully-crafted writing style. However, we mark his paper with a C for logical flow and a D for veracity of research.” In a July paper for the Seniors Coalition, Hazlett said USF subsidies to rural companies encourage inefficiency and block adoption of advanced technologies.

The FCC fined Local Phone Services (LPS) $529,000 for not contributing to the Universal Service Fund. The FCC said LPS began offering long distance service in Kan. in 2002. The company registered to pay into the USF but its 2002 and 2003 revenues were considered “de minimis” and exempt from contributing under the program rules. However, in 2004 the company “no longer qualified for that exemption… but failed to file worksheets and make contributions to the USF for that year as required,” the FCC said. The Commission said LPS didn’t file worksheets through the end of 2005 and made no universal service contributions until May 26, 2006.

Facing a possible FCC review, Verizon dropped Wed. a DSL surcharge it had imposed in late Aug., shortly after the FCC removed a similar-sized federal DSL fee. The FCC sent a letter to Verizon on Fri. asking why it hit customers with a new fee just as the FCC freed customers of the universal service fee on DSL service (CD Aug 28 p1). BellSouth killed a comparable fee Fri. as the FCC was preparing the letter that originally was intended for both Bell companies.

Facing a possible FCC slap, Verizon Wed. dropped a DSL surcharge it had imposed in late Aug., shortly after the FCC removed a similar-sized federal DSL fee. The FCC sent a letter to Verizon on Fri. asking why it hit customers with a new fee just as the FCC freed customers of the universal service fee on DSL service (WID Aug 28 p2). BellSouth killed a comparable fee Fri. as the FCC was preparing the letter that originally was intended for both Bell companies.

The FCC Fri. sent a letter to Verizon asking why it hit customers with a new DSL fee just as a federal fee of about the same amount lapsed. However, the agency decided not to question BellSouth, which said Fri. afternoon it was killing plans for such a fee. FCC Martin reportedly was upset by the companies plans for replacement fees. “We generally prefer regulation be done by the marketplace but we will act to insure consumers’ interests are protected,” an FCC official said.

Media advocacy groups chided PBS for its decision to resume online ads, with some calling for congressional intervention to stop the network from proceeding. PBS said it will start accepting ads in Oct. on PBS.org and its children’s site PBSkids.org and PBSkids Go! (CD Aug 24 p5). Instead of looking for commercial opportunities online, PBS should be raising money from viewers and foundations by pioneering new forms of noncommercial content, said Jeff Chester of the Center for Digital Democracy.

The FCC Fri. sent a letter to Verizon asking why it hit customers with a new DSL fee just as a federal fee of about the same amount lapsed. However, the agency decided not to question BellSouth, which said Fri. afternoon it was killing plans for such a fee. FCC Martin reportedly was upset by the companies plans for replacement fees. “We generally prefer regulation be done by the marketplace but we will act to insure consumers’ interests are protected,” an FCC official said.