While telecom and universal service fund (USF) reform have dominated communications industry speculation about the congressional agenda, House Commerce Committee leaders made clear their first priority: DTV transition by 2006. House Commerce Committee Chmn. Barton (R-Tex.) and Telecom Subcommittee Chmn. Upton (R-Mich.) told reporters Wed. they would push legislation that would enforce a 2006 transition date for conversion of analog TV signals to digital, and it would be up to broadcasters to convince them a longer transition was needed. Barton has proposed a subsidy to help buy DTV converters for the poor and elderly. Upton said DTV conversion hearings would be held soon, and he hoped a bill would be introduced by late May.

FCC changes: Jeremy Miller moves to deputy chief, Wireline Bureau’s Competition Policy Div.; Mark Stephens becomes advisor-Universal Service Fund oversight in Wireline Bureau’s Telecom Access Policy Div… Arbitron promotes Carol Hanley to senior vp-sales, U.S. Media Services… NBC Universal TV promotions: Craig Kurland to vp-business affairs, and Philip Matthys to dir.- business affairs… Promotions at AT&T Govt. Systems: Xavier Williams to vp-federal sales; Don Herring to vp-operations… Wendy Mann, ex-Intelligent Transportation Society of America, named NCTA dir.- communications… Neil Cox, ex-SAIC, joins Knowlagent advisory board… Jaci Hale, ex-DST Innovis, becomes ICTV dir.-international mktg… Ken Hyers, ex-InStat, moves to ABI Research as principal wireless analyst.

The U.S. telecom industry turned the corner in 2004, as spending grew 7.9% to $784.5 billion, according to TIA’s 2005 Telecom Market Review & Forecast. It said that was “a significant improvement” from gains of 3.6% in 2003 and 1.9% in 2002. The growth was driven by an increase in equipment and software revenue and double-digit increases in wireless services, service in support of equipment and specialized services that offset decreases in wireline services revenue. “2004 was a turnaround for the telecommunications industry,” TIA Pres. Matthew Flanigan told reporters Tues. He said the U.S. telecom industry was expected to continue to grow at a projected 9.5% compound annual growth rate (CAGR) the next 3 years, reaching $1.1 trillion by 2008.

The Kan. Corp. Commission ordered a slight reduction in the state universal service fund assessment on providers, to 4.32% from 4.87%. The commission also capped the monthly per- line assessment at $1.31 for SBC, and $1.36 for Sprint. The cap for other incumbent carriers ranged from $1.66 down to 79 cents. Several rural incumbents attempted to use this assessment review as an opportunity to again air their complaints about distribution of state universal support on a per-line basis but the commission declined to discuss it, saying the dispute is pending before the Kan. Court of Appeals, where hearings are to open Feb. 8.

Divisions appear to growing rather than narrowing between the various sides, including small and large ILECs, wireless carriers and the states, as the FCC readies a proposed rulemaking on intercarrier compensation (ICC) reform for its Feb. 10 meeting. Sources told us that as of Fri. the commissioners were just starting to consider the rulemaking and accompanying orders to address associated wireless issues.

The House Congressional Rural Caucus Task Force on Telecom will hold its 2nd forum on telecom issues Feb. 2. The forum’s theme is “The Future of Telecom and the Universal Service Fund in Rural America.” CTIA Pres. Steve Largent, USTA Chmn. Gene South, senior Verizon officials and members of the rural medical and educational communities are scheduled to attend. The Task Force is led by co-chmn. Reps. Gutknecht (R-Minn.) and Stupak (D- Mich.). It’s scheduled for Feb. 2, 2:30 p.m. in Rm. 1539 Longworth Bldg.

House Commerce Committee Vice-Chmn. Pickering (R- Miss.) speculated Wed. that the House could be done with comprehensive telecom legislation by the end of the year but that action on a Senate counterpart would take longer. Before it tackles telecom reform, Pickering said, the House Commerce Committee would try to move leftover bills that weren’t enacted last year, including those on broadcast decency, junk faxes and spyware.

House Commerce Committee Vice-Chmn. Pickering (R-Miss.) speculated Wed. that the House could be done with comprehensive telecom legislation by the end of the year but that action on a Senate counterpart would take longer. Before it tackles telecom reform, Pickering said, the House Commerce Committee would try to move leftover bills that weren’t enacted last year, including those on broadcast decency, junk faxes and spyware.

The FCC asked for comments on Connect2 Internet Network’s request for review of decisions by the Universal Service Administrative Co. (USAC) that would require Connect2 to return some of its E-rate funding. Several Connect2 employees were barred from participating in the E-rate program for 3 years after being convicted of conspiring to cheat the program (CD Dec 7 p8). According to the FCC, Connect2 argued that: “A previous criminal settlement with the Department of Justice precludes USAC and the Commission from recovering additional monies.” Connect2 also argued that it didn’t receive a copy of an audit report by the FCC’s Office of Inspector Gen. “and therefore never had an opportunity to respond to the allegations” in the report. The company said the amount of money sought by USAC isn’t consistent with the amount the audit report had said was erroneously disbursed. Comments are due Feb. 22, replies March 9.

Chmn. Powell announced Fri. he will leave the FCC in March. With key issues pending for all communications sectors, sources agreed the next chmn. is likely to maintain Powell’s policies in the broadest sense, including an emphasis on competition and on promoting new technologies.