AT&T will promise universal broadband availability throughout Chicago and its suburbs within 4 years, in return for retail rate deregulation, in an agreement with the Ill. Citizens’ Utility Board. The proposal, which requires approval from the Ill. Commerce Commission, would freeze rates on residential basic services for 4 years for roughly 2.5 million customers, while other service rates are priced to market. In return, AT&T would have to make DSL available on 99% of Chicago-area access lines by 2010, and set up a $2.5 million consumer education fund. AT&T last fall asked the Commerce Commission to deregulate all retail rates in metro Chicago; this proposal would settle that case. But the Ill. Attorney Gen. Office says the proposal would lock in basic service rates at a time when costs are declining, and said basic service rates should be cut, not frozen. Other parties still must weigh in on the proposal, including the commission’s staff, City of Chicago and Cook County. The CUB, however, said the Chicago proposal will be better for consumers than the broad rate deregulation granted to AT&T in neighboring states that offered little rate protection for basic service customers.

AT&T and the Ill. Citizens’ Utility Board reached agreement on a retail rate deregulation proposal for the Chicago metro area that would trade rate deregulation for universal broadband availability throughout the city and its suburbs within 4 years. The proposal, which requires approval from the Ill. Commerce Commission, would freeze rates on residential basic services for 4 years for roughly 2.5 million customers, while other service rates are priced to market. In return, AT&T would have to make DSL available on 99% of Chicago-area access lines by 2010, and set up a $2.5 million consumer education fund. AT&T last fall asked the Commerce Commission to deregulate all retail rates in metro Chicago; this proposal would settle that case. But the Ill. Attorney General’s Office says the proposal would lock in basic service rates at a time when costs are declining, and said basic service rates should be cut, not frozen. Other parties -- including the commission’s staff, City of Chicago and Cook County -- still must weigh in on the proposal. The CUB, however, said the Chicago proposal will be better for consumers than the broad rate deregulation granted AT&T in neighboring states, which offered little rate protection for basic service customers.

Comr. Tate promised rural carriers she will push for light-handed regulation of wireless with an eye on encouraging build out of wireless broadband networks. “Wireless providers will be critical to getting broadband out to that last, most difficult mile,” Tate told the Rural Cellular Assn.: “To that end, I believe that the FCC must use a light regulatory touch that gives you the freedom to try new ideas and deploy new technology.” Tate also urged the rural carriers to work with the FCC on USF reform: “We must keep in mind that the Universal Service Fund is not yours, or ours, but is money that has been entrusted to us to use wisely in furthering a public interest Congress has identified.”

The fight over net neutrality language in the telecom bill introduced by House Commerce Committee Chmn. Barton (R-Tex.) threatens to sink any remaining hope for telecom legislation this Congress, Verizon Exec. Vp Tom Tauke said Tues. Tauke said he still sees some hope for legislation that includes only video franchise plus USF reform provisions needed to please Sen. Stevens (R-Alaska), chmn. of the Senate Commerce Committee.

The Senate likely will learn the “hard way” to pare a 10-title telecom bill to get it passed, Rep. Pickering (R- Tenn.) said Tues. at a Pike & Fischer lunch. Pickering called the Senate’s broader approach to telecom legislation a “generous hodgepodge of issues” that need to be addressed.

WHITE SULFUR SPRINGS, W.Va. -- If FCC staff could change communications law, they'd get the agency Sunshine Act relief, many said when asked at an FCBA seminar here for their “wish lists” for Congressional action. Another top wish: Expanding Universal Service Fund contributions by including intrastate and interstate revenue, now barred by statute. Both changes are pending in a bill introduced by Senate Commerce Committee Chmn. Stevens (R-Alaska).

The satellite industry hailed language deep in a telecom bill by Sen. Stevens (R-Alaska) that would strengthen the satellite industry’s hand in 2 arenas where it claims unique utility: disaster communication and rural broadband deployment. If the bill’s satellite provisions survive conference, “it’s a big win for the satellite industry,” Satellite Industry Assn. (SIA) Exec. Dir. David Cavossa.

The satellite industry hailed language deep in a telecom bill by Sen. Stevens (R-Alaska) that would strengthen the satellite industry’s hand in rural broadband deployment. If the bill’s satellite provisions survive conference, “it’s a big win for the satellite industry,” Satellite Industry Assn. (SIA) Exec. Dir. David Cavossa. Broadband is wrapped into Universal Service Fund (USF) reform efforts. The bill would set up a broadband account in USF to support deployment in areas the FCC deems unserved. A satellite-specific sub- section would make satellite broadband providers like WildBlue and Hughes Network Systems eligible for support from the broadband account. What’s more, the bill would make customer premise equipment -- satellite broadband dishes and modems -- eligible for USF support. Satellite broadband is touted as an ideal broadband mode for rural communities beyond terrestrial broadband’s reach. But while the hardware can be installed in the middle of nowhere, it’s costly -- sometimes too costly for subscribers -- and gaps in Dept. of Agriculture funding for rural broadband deployment leave out consumer premise equipment. The language in Stevens’ bill would bridge that gap, allowing satellite broadband providers to qualify for federal USF funds. But the Commission still could rule a community unserved by broadband, and eligible for more USF broadband money, if satellite broadband subscriptions in the area are “de minimis.”

Govt. should take a hands off approach to video and broadband services, said cable and telco officials and state regulators. Whether the subject was net neutrality, state telecom regulation or the universal service fund, most speakers at a Federalist Society conference said deregulation is the best course. NCTA Pres. Kyle McSlarrow and USTA Pres. Walter McCormick said net neutrality rules could delay the enhancement of broadband services. Their groups and other competing interests have joined to fight Internet rules (CD May 3 p6).

Rural telcos want a wider contribution base for the universal service fund, plus support for broadband deployment, according to Wed testimony before the House Subcommittee on Rural Enterprises. Groups lauded the approach in a bill (HR-5072) by Reps. Terry (R-Neb.) and Boucher (D-Va.) that would require all 2-way voice services to contribute, create a fund for broadband deployment in unserved areas and put a limit on the fund’s growth.