Several senators opposed to the Internet tax moratorium bill as written will introduce their own measure as early as today (Wed.). Sens. Alexander (R-Tenn.) and Carper (D-Del.) have led the fight against S-150 by Sen. Allen (R-Va.), charging it is an unfunded mandate that would endanger state collection of existing telecom taxes. A draft copy of legislation obtained by our affiliated Washington Internet Daily reveals that the bill largely mirrors a compromise proposed by Alexander and Carper late last year, an analysis confirmed by Hill sources.

Senate Communications Subcommittee Chmn. Burns (R-Mont.) said legislation affecting wireless privacy probably would be introduced this year and could pass. In a forum Mon. on telecom issues sponsored by The Hill newspaper, Burns said wireless privacy was an issue -- like the Do-Not-Call list -- that could get a quick response from Congress. He said he was working with Sen. Wyden (D-Ore.) and expected to introduce a bill this year, although he didn’t provide details on what aspects of wireless privacy it would address. Burns said there probably would be a hearing on the Universal Service Fund (USF) within the next 60 days. He said he had concerns about USF spending, including allegations of abuse in the E-rate program, but said legislators should focus first on how USF was funded, “then we'll worry about how the dollars are used.” Burns has floated draft legislation that would require intrastate telecom revenue be subject to USF. He said progress could be made soon on the impasse over the Internet tax moratorium. Burns said the issue was discussed at the recent Republican retreat in Philadelphia and “we may have made some headway.” The bill (S-151) by Sen. Allen (R- Va.) would establish a permanent moratorium on Internet access taxes. But Sens. Alexander (R-Tenn.), Voinovich (R- O.) and Carper (D-Del.) have expressed concerns that the bill also would strip states of their existing authority to levy telecom taxes. Burns said progress made at the retreat was stalled by the discovery of Ricin in the Dirksen Bldg., which “disrupted” negotiations. He said that the U.S. needed to do a better job of broadband deployment and that it was “time to set policy that will foster a broadband build-out.” VoIP will be an important issue, he said, specifically on the USF, but “all of the questions haven’t been answered” and lawmakers and regulators still needed to study the issue. Burns said communications could help improve the political climate in the Middle East. He said if the U.S. were successful in Iraq, it would lead to a “transportation and communication corridor” that could stretch from Tel Aviv to Kuwait City.

The Kan. Corporation Commission (KCC) called for comment by March 19 on whether it should establish a single statewide rate for customers on Lifeline service. That would mean all Lifeline subscribers would pay the same monthly rate regardless of local service provider. Parties should comment on whether there should be a statewide Lifeline rate at all, whether such a rate would be affected by calling scope and what factors should be considered in setting such a rate. The KCC said the docket (Case 04-GIMT-653-GIT) was part of a required periodic review of the state universal service fund.

Vonage CEO Jeffrey Citron warned Fri. that “premature regulations could kill the nascent VoIP industry.” Speaking at a policy lunch sponsored by the Progress & Freedom Foundation in Washington, Citron said regulations could slow broadband deployment, undermine the U.S. position as a technological leader and force service providers offshore. He urged legislators to “bring clarity to the VoIP regulatory framework to protect competition. New laws are needed to ensure Internet applications remain free from regulation.”

The Alliance for Public Technology (APT) told the FCC it was worried whether the telecom industry was genuinely excited by VoIP or simply was looking for a way to avoid paying access charges and other fees. The group said in a Feb. 4 letter to the Commission: “All voice service providers, regardless of the technology used, should meet important social obligations” such as universal service support, funding of telecom relay service used by individuals with disabilities, access charges and E911. “VoIP and other emerging technologies offer exciting new possibilities in expanding the way Americans communicate, but only if all Americans have affordable, quality access to them,” APT said.

Sprint Chmn. Gary Forsee called on the FCC to bring “much-needed clarity by promptly ruling that phone-to-phone VoIP should pay access charges.” Speaking at a Sprint investors meeting Wed. in N.Y., he said his company would take a high profile in addressing VoIP issues this year, pushing regulators to eliminate regulatory uncertainty: “Our perspective is to take prudent positions on initiatives such as UNE-P and VoIP to minimize the effect of regulatory mixed messages.” He expressed concern that “regulatory uncertainty” could interfere with the industry’s moving forward: “What this industry needs from regulation is clear, rational rules, especially surrounding VoIP and intercarrier compensation. Right now it’s a mess.”

Because of “the inherent” differences between IP networks and the traditional circuit-switched kind, regulation shouldn’t be applied to VoIP “without thorough justification that it is necessary as a matter of public policy,” TIA said in a policy statement sent Tues. to the FCC. The statement, which TIA said represented the views of telecom equipment manufacturers, cautioned the agency to remember regulation would “restrict the inherent advantages of the IP platform.” TIA said all technologies should meet public interest needs such as providing access to law enforcement agencies where “technically and operationally feasible” and supporting “emergency response needs of public safety authorities.” VoIP services shouldn’t engage in misleading marketing, such as slamming, but “we anticipate that market forces will be the strongest agent of consumer protection,” TIA said. The association also weighed in on the side of making VoIP subject to “a single federal policy which explicitly preempts inconsistent state actions.” Agreeing with views expressed by some VoIP carriers, TIA said VoIP might help reduce the cost of serving high-cost areas and thus the amount of universal service funding needed. However, universal service funding still must be supported, TIA said, urging actions to keep the funding system fair: (1) “Ensure that support is not greater than the minimum necessary to ensure… affordable and reasonably comparable rates.” (2) “Recognize that voice is one of many applications provided over IP networks and that segregating voice from other applications is infeasible and will harm innovation.” (3) Encourage the use of efficient technologies in rural areas. (4) Not impose “legacy regulatory mechanisms on VoIP in lieu of reforming those mechanisms.” Among such “legacy” regulations that don’t fit VoIP are requirements to obtain state certificates or licenses, TIA said. A VoIP provider should be required simply to register with a state, like some other businesses, the association said.

Although Rep. Barton (R-Tex.) is mainly an energy expert, he could help lead the next overhaul of telecom regulations if he takes over the House Commerce Committee Feb. 16. Committee Chmn. Tauzin (R-La.) resigned Tues., effective that day, and said he wouldn’t seek reelection. Barton is widely regarded as front-runner for chairman, and he acknowledged Wed. he was seeking the job. He has a limited track record on communications, but sources -- and his own comments -- indicate he would be likely to push for comprehensive telecom reform in 2005.

Delegate Bordallo (D-Guam) introduced a bill designed to improve telemedicine in the U.S. territories in the Pacific Rim. Her proposed Pacific Rim Insular Areas Rural Telemedicine Act would designate Honolulu as the “urban area” for Guam, American Samoa and the Commonwealth of the Northern Mariana Islands. The FCC has designated each territory’s capital city an “urban area,” though none has the 50,000 residents needed to earn that classification, Bordallo said. She said changing the designation would allow more universal service funds to be used for telecom in those territories.

Despite evoking scant interest in their commercial counterparts, public broadcasters are pressing ahead with their proposal for TV stations to embrace a hard date for analog switch-off. The Assn. of Public TV Stations (APTS) will submit a draft plan for stations to adopt a hard date for moving into digital-only operations to its board at public TV’s annual Capitol Hill Day in Washington Feb. 24-25, APTS Pres. John Lawson told us. The public broadcasters are planning to use the offer of an early return of analog spectrum to achieve a long-standing demand for a trust fund for public TV. PTV officials wouldn’t provide estimates of the size of the proposed trust fund, or the cost of set-top boxes.