Nearly a year earlier than expected, Cambridge Display Technology filed for an IPO seeking to raise as much as $40.3 million to develop polymer-based organic light emitting diode (P- LED) technology.

SBC said in a July 30 letter to the FCC that AT&T’s exclusive contract with the Defense Dept. (DoD) should be examined. AT&T has petitioned the FCC to have its long distance calling card be classified as an information service rather than a telecom service, which would prevent the carrier from meeting universal service fund and access charges requirements (CD July 26 p1). SBC said AT&T was engaged in “unethical and illegal acts” because it wasn’t collecting the charges on the cards, which are used by military personnel, including in Iraq and Afghanistan. “DoD should hold AT&T to the terms of its procurement contract and/or launch an investigation into whether the representations AT&T made in bidding on that contract, or AT&T’s performance under the contract, violate federal laws and regulations.” SBC said DoD would set a “dangerous precedent” if it gave the contract to suppliers that offer lower prices by violating the law. SBC said AT&T’s threat to raise rates would mask dodging of USF payments. SBC said: “Providers that play by the rules likely will seek a refund of their USF payments or copy AT&T’s charade.” AT&T has said that since the service includes a prerecorded advertisement, it’s an informational service. SBC disagreed. The letter was signed by Paul Mancini, SBC senior vp-asst. gen. counsel.

Wireline and wireless carriers alike opposed reseller TracFone Wireless’s request for universal service funding in N.Y., saying it would add pressure on the Universal Service Fund (USF) without benefits. But public interest groups said the entry of TracFone, which offers prepaid service, would help low-income consumers. TracFone had asked the FCC to give it eligible telecommunications carrier (ETC) status, needed to receive USF support, and to forbear from rules that require a carrier to have facilities of its own to receive that USF support.

Regulation is a key element in the Bush administration’s push for greater broadband deployment, officials said Wed. At a briefing for reporters on the administration’s efforts to promote multiple broadband options for consumers, Office of Science & Technology Policy (OSTP) Dir. John Marburger said “regulation is necessary” to prevent interference and support standards: “It’s an essential function of government.”

States might have to begin thinking about replacing revenue from telecom services with another revenue stream, perhaps the streamlined sales tax, House Judiciary Commercial & Administrative Law Subcommittee Chmn. Cannon (R-Utah) suggested Fri. During Fri.’s hearing on VoIP regulation, Cannon asked many questions about state taxation of VoIP specifically and telecom and Internet taxation generally. In a broad discussion that also touched on the Internet tax moratorium and wireline access regulations, Cannon said VoIP will likely reduce state revenue, even if states get authority to tax it.

After being barraged by calls and letters from consumers, FCC Chmn. Powell on Fri. temporarily pulled back from a controversial proposal involving AT&T’s “enhanced” prepaid calling card service. An FCC source said Powell wanted to gain more information about the impact of his initial plan to deny AT&T’s request for a ruling that the card service was exempt from universal service contributions or access charges. The source emphasized that the action didn’t mean Powell planned to change his vote. The item is still being circulated among commissioners, but Powell has removed his vote to deny the AT&T petition. That means only one vote remains registered, reportedly that of Comr. Abernathy.

A spokesman for the Coalition for Equitable & Affordable Rural Service (CLEAR) said attempts would probably continue to move universal service fund (USF) reform legislation through Congress this year. CLEAR supports S-1380, legislation from Sen. Smith (R-Ore.) that would change funding for the so-called “high cost” fund, which supports larger telecom providers who provide service to rural areas. More than 40 states and territories don’t receive any of the funding, which is about $260 million yearly. There were efforts to introduce the bill Thurs. during the comprehensive committee markup, sources said. But some relevant legislation, including VoIP, passed without the amendment’s being offered by Smith. And other bills that might have taken the amendment, such as the junk fax bill, moved without amendment after Sen. Wyden (D-Ore.) forced a procedural end to the markup over objections to the nominee for FTC chmn. (CD July 23 p1). Industry sources said Sen. Lott (R-Miss.), whose state receives the largest piece of the funding, would agree to the amendment. The CLEAR coalition coordinator told us he expects an effort to move the measure in Sept., once Congress returns.

House Commerce Committee Chmn. Barton (R-Tex.) pledged legislation next year to improve the administration of the federal E-rate program, beset by scandal at the local level. Speaking at a subcommittee hearing Thurs. that delved into fraud in E-rate funding in San Francisco, Barton told the audience “we're going to make structural changes in this program statutorily, probably in the next Congress… to make sure this doesn’t happen again.” The hearing before the Subcommittee on Oversight & Investigations was run by Rep. Walden (R-Ore.) because Subcommittee Chmn. Greenwood (R-Pa.) announced his retirement Thurs.

The Senate Commerce Committee approved several pieces of legislation Thurs. -- including VoIP, satellite home viewer improvement act (SHVIA), low power FM radio, junk fax and reauthorization of the Corp. for Public Bcstg. (CPB) -- but fighting over an FTC nominee brought an abrupt end to the markup, which could have prevented some amendments from being introduced. Sen. Wyden (D-Ore.) infuriated Committee Chmn. McCain (R-Ariz.) by invoking the “2-hour rule” which prevents committee meetings from lasting more than 2 hours when the Senate is in session. Wyden was battling McCain on procedures concerning Deborah Majoras, the nominee for FTC Chmn. Wyden opposed the nomination over disagreements with FTC action on gasoline prices. Sources said potential amendments to junk fax and CPB legislation couldn’t be offered after Wyden’s procedural move. The Committee had approved the 2 bills under unanimous consent with the understanding they could be amended later in the markup.

SAN FRANCISCO -- VoIP could drain Cal.’s universal service coffers of $400 million in 2008 as it grabs 43% of the state’s voice business, predicted the staff of the state PUC. The so-called High Cost Funds A & B -- to promote service in high-cost areas through subsidies to SBC, Verizon and 17 small companies -- are expected to lose $114-$253 million, said Jack Leutza, the PUC’s Telecom Div. dir. The Universal Lifeline Fund, providing subsidies to low-income users, is seen losing $48-$107 million, the Deaf & Disabled Communications Fund $13-30 million and the Cal. Teleconnect Fund for school, library and rural medical and community- based organizations $8-$17 million, he said on a Tues. night VoIP panel here organized by Women in Telecom.