Congress will weigh key technology issues this year. Some bills will stir fierce fights, while industry will get quick wins on others, Rep. Boucher (D-Va.) told the Computer & Communications Industry Assn. (CCIA) Wed. The Congressional Internet Caucus co-founder predicted easy decisions on sweeping patent reform, a hard deadline and subsidy model for DTV transition and Internet-specific Telecom Act updating. But the broadcast flag and digital content reproduction and fair use issues will be more contentious.

Congress will weigh key high-tech issues this year. Some bills will stir fierce fights, while industry will get quick wins on others, Rep. Boucher (D-Va.) told the Computer & Communications Industry Assn. (CCIA) Wed. The Congressional Internet Caucus co-founder predicted easy decisions on sweeping patent reform, a hard deadline and subsidy model for DTV transition and Internet-specific Telecom Act updating. But the broadcast flag and digital content reproduction and fair use issues will be more contentious.

An order to require VoIP providers to give customers access to E-911 service is on the agenda for the FCC’s open meeting Thurs., as expected, but it’s not clear if that order will be as strongly worded as proponents want. The order is expected to require VoIP providers to offer adequate access in 120 days, which probably would put the deadline in mid or late Sept. The order probably won’t set any requirements for ILECs to open network facilities VoIP providers say they need to offer full 911 service.

The Tex. PUC opened a universal service rulemaking to determine what, if any, changes are needed to its rules for qualifying telecom providers as eligible telecom carriers (ETC) in light of recent changes by the FCC to its ETC requirements. The PUC said it will see if changes are needed to “ensure that only fully qualified applications receive designation as ETCs, provide a more predictable application process, and to improve the long- term sustainability of the universal service fund.” The PUC has 3 wireless carriers seeking ETC status for their mobile wireless services. Those cases are pending before a hearing examiner.

Several telecom groups wrote the Senate Commerce Committee leadership Wed. to express support for S-241, legislation that would permanently exempt the Universal Service Fund (USF) from Anti-Deficiency Act (ADA) requirements. The Committee has held a hearing on the bill (CD April 12 p1), introduced by Sen. Snowe (R-Me.) and co-sponsored by Senate Commerce Committee Chmn. Stevens (R-Alaska), Committee ranking Democrat Inouye (Hawaii), and Sen. Rockefeller (D-W. Va.). No markup’s scheduled for the bill, and the groups urged quick action in the letter. “Given the potential disruption to all universal service programs, it is vital for the Commerce Committee to address this issue as soon as possible, so that the uncertainty that currently hangs over these programs can be permanently eliminated,” the letter said. Since the Office of Management & Budget (OMB) required the FCC to apply ADA rules to USF last year, the program has needed funds in hand to make disbursement commitment. Congress last year passed a temporary one-year exemption from ADA, since it would have resulted in missed payments from USF and the E-rate program. The letter said: “Without such an exemption, millions of people will undoubtedly experience service disruptions and significant increases in the universal service contribution factor.” Signers of the letter include Alcatel, Apple, Independent Telephone & Telecom Alliance, NARUC, NASUCA, National Education Assn., NTCA, OPASTCO, TIA, U.S. Conference of Mayors and Western Wireless.

Reviewing the past 10 or 20 years, telecom veterans at a conference Wed. said FCC regulatory focus has changed little despite the advent of new technology -- with scant chance of legislation in the next few years to change that. “We've been asking the same questions for a long time,” said Gary Epstein, Latham & Watkins partner and ex- FCC Common Carrier Bureau Chief, at a Pulver.com conference in Washington.

More than 100 rural telecom executives hit Capitol Hill Tues. to start 2 days of lobbying for universal service and broadband issues as part of an annual event sponsored by OPASTCO. In a morning briefing, OPASTCO staff told rural ILECs Antideficiency Act (ADA) legislation should top their agendas as they visited representatives and senators from their home states.

The Mo. PSC ordered a new phone bill surcharge to cover a newly implemented state universal service fund. The fee, set at 0.18% of combined charges for local and long distance service, is expected to generate about $2.7 million annually. The fee will support a fund that subsidizes qualifying low-income customers’ state local service subsidy up to $3.50 monthly on top of federal universal service subsidies. At least 40 other states have state universal service funds to supplement federal support.

House Commerce Committee Chmn. Barton (R-Tex.) will endorse Howard Waltzman, his top telecom counsel, for a seat on the FCC, the congressman told us. With one vacancy -- created by Chmn. Powell’s departure -- and another expected soon when Comr. Abernathy leaves, Waltzman could become one of 2 Republican nominees to the FCC. Senate Commerce Committee Chmn. Stevens (R-Alaska) is supporting Christine Kurth, his committee deputy staff dir., for one of the openings. Congressional endorsements are influential, but the White House decides FCC nominations.

Rep. Terry (R-Neb.) is working on universal service fund reform legislation designed to appeal to rural advocates and House Commerce Committee Chmn. Barton (R- Tex.), a House source told us. USF reform is a major goal of rural telecom interests this session and the issue is high on Senate Commerce Committee Chmn. Stevens’ (R- Alaska) agenda, sources said. But Barton has raised questions about the program and said Fri. an “academic argument” could be made for its elimination, though he admitted the political impossibility of ending the program. The House source said Terry’s bill would be a full restructuring of the USF program, but specific details weren’t available. But the source said Terry’s staff is considering a “hybrid model” for USF contribution that could include elements of a revenue-based system and a numbers-based system. A system of contribution based on telephone numbers probably would create more contributors to USF, since the existing system relies specifically on long-distance revenue. AT&T had backed a numbers-based approach, but it’s unclear whether the proposed merger with SBC has changed the company’s position. Also, FCC Chmn. Martin has spoken in favor of a number-based approach. The House source said the bill would aim to expand the contribution base of USF and try to expand USF’s jurisdiction to allow collection on intrastate calls. Now, only interstate calls can be used in assessing funds. It’s unclear how the bill would handle USF distributions, the source said. The source said the bill wouldn’t address E-rate funding, which Barton wants eliminated. And it’s unclear whether the bill will include a provision to modify the USF’s non-rural high- cost portion. Terry introduced a bill last year that would change how this fund is distributed to large ILECs. Under the existing system, Miss., Ala. and W. Va. ILECs get the most funding, since they serve the most rural consumers. But western states say the fund, which totals about $260 million yearly, should be distributed more evenly to their states since geography and distance raise the cost of deploying telecom service to these rural areas. Qwest would be a primary beneficiary of this change. Sen. Smith (R-Ore.) has introduced legislation (S-284) this session that would make that change.