Schools and libraries applied for $3.65 billion in E- rate discounts for the funding year that starts July 1, the Universal Service Administrative Co. (USAC) reported to the FCC. The figure, based on 38,799 applications, represents demand for funding and not all of the requests may be filled. The program has a $2.25 billion annual cap. In the April 15 letter to the FCC, USAC said the figure is about 15% lower than the $4.28 billion sought in 2004. E-rate demand figures often are reduced as USAC processes the applications and discovers duplication and ineligible requests, the letter said.

No significant universal service fund reform in Congress is likely to be enacted until at least 2007, two members of Congress told a Center for the New West forum Fri. Sen. Craig (R-Ida.) and Rep. Cannon (R-Utah) said other legislative priorities, coupled with the issue’s complexity, make 2007 a likelier timeline for enactment. These members’ evaluation is noteworthy, since neither sits on his chamber’s Commerce Committee. They said their judgments are based on members’ knowledge and attitudes, not on the expert Committees.

Schools and libraries applied for $3.65 billion in E- rate discounts for the funding year that starts July 1, the Universal Service Administrative Co. (USAC) reported to the FCC. The figure, based on 38,799 applications, represents demand for funding and not all of the requests may be filled. The program has a $2.25 billion annual cap. In the April 15 letter to the FCC, USAC said the figure is about 15% lower than the $4.28 billion sought in 2004. E-rate demand figures often are reduced as USAC processes the applications and discovers duplication and ineligible requests, the letter said.

After multiple delays, Infinium Labs plans to launch its broadband Phantom Game Service and console in the 4th quarter this year, the company said in a 10-KSB SEC filing Wed. Infinium said it’s “currently in the development stage of operations and expects to be in that mode for at least the next 3 to 6 months.”

The House Commerce Committee plans to deal with telecom reform in separate bills, starting with IP issues, Brendon Weiss, aide to Rep. Fossella (R-N.Y.) said Tues. night at an FCBA seminar. Weiss said the panel wants to start circulating a draft IP bill by mid-May. The committee leadership hopes to have a bill on the floor this year or early next, he said.

Congress is seeking a law that would create a regulatory class for Internet Protocol platforms. It would likely cover services such as VoIP, video over IP and standard broadband, whether delivered by cable providers, phone or power companies. The House will likely seek to keep these services mostly free of regulation, especially by the states. But it will probably try to ensure that VoIP meets public service obligations such as 911 and the Communications Assistance to Law Enforcement Act (CALEA), which would allow police to wiretap Internet phone calls.

N.M. Gov. Bill Richardson (D) signed a bill to reform that state’s universal service fund. The new law (HB-776) requires the Public Regulation Commission to set affordability benchmark rates as the basis for subsidy by the state fund. Under the new law, the PRC periodically must review the benchmark rates through a rulemaking. The new law amends criteria for deciding when an application for eligible telecom carrier (ETC) status is in the public interest. The new criteria require the PRC to consider effects on the state fund of an additional ETC in a market and the additional ETC’s contribution to meaningful customer choice. The measure requires the PRC to act as necessary to ensure that intrastate access charges drop to interstate levels by May 2008.

While the FCC has many items on its agenda that could affect broadband delivery and service, it’s likely that nothing substantive will be resolved until the U.S. Supreme Court rules in the Brand X case. States could also play a factor in broadband delivery, though it seems their actions could have less potential impact, according to sources.

The U.S. Chamber of Commerce threw its weight into the debate on telecom reform Tues., announcing formation of a coalition that will seek deregulation. TeleConsensus -- which includes SBC, BellSouth, Verizon and NCTA -- will advocate ending policies that favor certain networks and ending price distortions, said Chamber Pres. Thomas Donohue. House Commerce Committee Chmn. Barton (R-Tex.) joined Donohue in unveiling the coalition and said the telecom reform sought by his committee will start from “a clean sheet of paper” and be an “enhancement, and in some cases a substitute, for the 1996 Telecom Act.” He said the Telecom Subcommittee will continue to hold hearings to examine telecom reform, which will help the Committee determine what regulatory changes are needed. The Chamber released a study it commissioned on telecom reform, titled “Sending the Right Signals: Promoting Competition Through Telecommunications Reform.” The study, which Donohue said was commissioned through general revenue funds, so it would not face credibility questions because of industry backing. The study laid out 6 recommendations: (1) Phase out mandatory network-sharing rules and, “more immediately,” end regulated wholes rates set at what it called “theoretical costs.” (2) Make 438 MHz of prime radio spectrum available for commercial wireless operators. (3) Exempt high-speed cable modem and DSL from common carrier regulations. (4) Exempt Internet service from state telephone service regulations. (5) Raise funds for universal service directly from general tax revenue, rather than from “hidden costs that penalize telecommunications competition and the growth of network services.” (6) Distribute universal service funds directly to targeted consumers. Other TeleConsensus members include the Electronic Industries Alliance, National Assn. of Manufacturers, National Black Chamber of Commerce, Time Warner, T-Mobile USA and 3M. Jason Oxman, CompTel/ALTS senior vp-legal affairs, said Bell companies were playing “bait and switch” and trying to eliminate competition before committing to rolling out broadband service. “If we let the Bells recapture their monopolies, as they are close to doing, we will once again see a return to the pre-1996 days of dial up Internet access and ISDN -- services with fat profits for the monopolies, but no benefit for consumers and small businesses,” Oxman said.

Senate Commerce Committee Chmn. Stevens (R-Alaska) said Mon. he fears federal funding for school internet services, rural telephone service and library computers could be threatened temporarily. Stevens said a tight calendar could keep Congress from fixing problems the Anti-Deficiency Act creates for the Universal Service Fund, in turn suspending USF payments.