Civil liberties and consumer groups lobbying the EU on Information Society issues are hampered by lack of money and access, observers said. On matters from privacy to digital rights to intellectual property (IP), these groups - part of “civil society” -- find it hard to compete with industry for lawmaker, govt. and Eurocrat attention, they said. Telecom sector lobbyists seem generally satisfied with the process’s transparency but rights advocates said the system has grave problems current reform efforts won’t fix.

Wireless carrier Dobson said it achieved eligible telecom carrier status in Alaska and Minn. Stanford Group said in a report the development is favorable for Dobson and could mean an extra $30 million in annual universal service fund subsidies. “There has previously been a lot of uncertainty surrounding the timing of Dobson potentially receiving ETC status in the 2 states, and we believe today’s announcement comes earlier than expected.”

The House telecom package still doesn’t “have wings” after a year of work, so lawmakers should pass video choice and other provisions that have support, Verizon Exec. Vp Tom Tauke told reporters Fri. Rather than let another year pass without a law, Tauke said, “we'd like to see the House consider some alternative approaches.” Video franchising could move quickly, while universal service, intercarrier compensation and similarly complex matters could drag on, Tauke said: “If you can’t get the whole loaf, let’s get a portion of it.”

The Ind. Senate passed 40-6 an amended version of a telecom deregulation bill (SB-245) that would end state regulation of retail phone rates by 2009, shift video franchising authority to the state, immediately deregulate broadband, provide tax incentives for broadband infrastructure investments and impose prerequisites for municipal telecom entry. Senate amendments would prohibit telecom carriers from abolishing unlimited flat-rate local service in favor of measured local service plans, retain Utility Regulatory Commission jurisdiction over intercarrier disputes but under an accelerated process, and establish a state universal service fund to supplement federal Lifeline subsidies. The Senate also modified the prerequisites for municipal telecom services. The bill goes to the House, which has until March 2 to pass it.

FCC Comr. Adelstein has “long supported a revenue approach” for raising money for the Universal Service Fund “because it’s easier to administer,” he told OPASTCO members Wed. at their winter meeting in Maui. That doesn’t mean he would reject proposals to move away from revenue, he told them. “I'm open to exploring all alternatives; I don’t reject any of these” proposals for reforming the USF contributions system, but none of them is “a panacea,” he said. The FCC is considering changing the way carriers contribute to the USF because of concern the current revenue-based approach no longer works due to changes in industry technology. Adelstein told the group universal service reform is one of the top 3 issues before the FCC this year. Others are intercarrier compensation and IP-based services -- and all 3 are interrelated. “I don’t know if we ever had such a big nut to crack” at the FCC, he said: “Each one of those 3 proceedings is a huge challenge and complicated on its own” and all have to be done in concert. During a Q-&-A session after Adelstein’s speech, rural telecom executives emphasized their concern about phantom traffic. Phantom traffic needs to be dealt with before the FCC takes on USF reform because “the basics need to be handled first,” said a telecom official from Minn. Adelstein said he agreed there was “a good argument for doing it first.” He told the group that “some people, I think, prefer to have this [issue] out there as a driver” to force consensus among supporters of various proposals. However, phantom traffic “may be harder” to fix if regulators wait, he said. In answer to another question, Adelstein said FCC rules require video content providers to offer nondiscriminatory access to their content at reasonable rates but the rules are limited. It’s “contrary to the intent” of the rules for companies to use their “vast hold on the market” to impede access to content, he said. One audience member asked if it made sense for rural carriers to keep “pouring” money into networks while intercarrier compensation and USF reform remained pending. Adelstein told him the FCC, and the Senate Commerce Committee, strongly support USF. “We can’t afford to let these networks go. They are critical to future economic competitiveness.”

Broadband wireless in the 2.5 GHz band would be held back by the FCC’s limiting to 15 years license terms for Broadband Radio Service and Educational Broadband Service, service providers indicated to a Wireless Communications Assn. conference in San Jose last week. The restriction would be bad news for Sprint Nextel, which plans “a sizable commitment” in the band and would face competitors like Verizon without similar constraints in their bands, said Paul McCarthy, Sprint’s licensee relations dir. Other matters that will affect how quickly the 2.5 GHz band is used effectively are creation of transition rules to remove impediments, auctioning whitespace, and “substantial service” requirements, he said. The pace of advance will be determined especially by how quickly “speculators” among license holders are removed from the spectrum, McCarthy said. But “you can deploy now, and we're going to do that,” he said: “Now is the time to compete with EVDO.” Other regulatory matters cited as affecting how quickly broadband wireless flourishes are whether Commercial Mobile Radio Service is classed as provision of pure information service; conditions of VoIP provision; CALEA, E-911 and universal service fund requirements; terms of access to the public switched phone network; and network neutrality. Clearwire supports net neutrality and believe it applies here, but “there’s a traffic management issue that allows you to guarantee your customers quality of service,” said Gerard Salemme, Clearwire exec. vp-strategy, policy & external affairs. It’s “not as simple as saying we're in favor of letting other people use our network,” he said. A Dec. agreement for Sprint to swap smaller-market 2.5 GHz licenses for large-market licenses from Clearwire foreshadow more such deals, executives of the companies said. “We both have a common interest in maximizing the value of that spectrum and its efficiency,” Salemme said. They also agreed mobility is central to the success of services in the band. Clearwire will start deploying the capability “in the very near term,” Salemme said. “The very, very near term.” -- LT

WCA Conference Notebook…

PASADENA, Cal. -- In her last news conference with TV writers, Pat Mitchell denied that -- despite the need to ask Congress for appropriations -- PBS is a political minefield. Mitchell said pointedly: “The political minefield that arose last year came about because somebody named Mr. Ken Tomlinson misinterpreted his responsibilities, in my opinion, because his role as chair of the CPB board was to protect PBS from being a political minefield, was to protect content from the source of government money or influence. He didn’t do that. He went public with criticisms rather than working constructively inside. And that’s regrettable. And you know, the good news is that CPB has new leadership, a new board, and I think has reaffirmed its belief in its own charter, which is it’s very important to have an institution, like CPB, whose role is to keep PBS and stations out of political minefields.”

The House will pass a telecom bill this year, although agreement has yet to be reached on sticky issues such as net neutrality, Commerce Committee aides told an FCBA lunch Fri. The legislation will be “market-based and market-driven,” said Howard Waltzman, the committee’s majority chief telecom counsel: “We're going to rely on the market to regulate these services and not have a heavy hand in govt. regulation. That’s what’s going to drive this legislation.”

The House will pass a telecom bill this year, although agreement has yet to be reached on sticky issues such as net neutrality, Commerce Committee aides told an FCBA lunch Fri. The legislation will be “market-based and market-driven,” said Howard Waltzman, the committee’s majority chief telecom counsel: “We're going to rely on the market to regulate these services and not have a heavy hand in govt. regulation. That’s what’s going to drive this legislation.”