Largely ignored in the debate running up to the FCC’s recent decision to relax media ownership rules, public broadcasters now are seeking to leverage what they call the growing “sentiment about local control” to give a boost to their policy agenda. Although both sides in the debate on media ownership rules spoke of preservation of local media and universal service, neither side gave consideration to public broadcasting, which is the “last true bedrock” of locally controlled free over-the-air media, said John Lawson, pres. of Assn. of Public TV Stations (APTS).

Schools and libraries will receive $2.2 billion in e- rate funding in the coming year under commitments completed Wed. by the quasi-governmental group that administers the program, the Schools & Libraries Div. (SLD) of the Universal Service Administrative Co. Completing what SLD calls funding year 2002, more than 64% of the money will go to needier schools where 50% or more of the children qualify for free lunches and libraries that serve those communities, it said.

The Vt. Public Service Board (PSB) directed wireless carriers to explain the local number portability and number pooling fees they have been billing to their customers. The PSC gave the carriers until July 7 to provide copies of customer bills listing the fees they charge. The PSB said it wanted carriers to explain why they were trying to recover their number portability costs before portability had been implemented. The PSB also wants to see whether the charge is being billed as a tax or as a govt.-mandated fee when it actually is being billed at the carrier’s option as a cost- recovery mechanism. The PSB also wanted carriers to explain why such a fee wouldn’t be a rate increase barred by their service contracts. In another matter, a PSB hearing examiner recommended approval of a Verizon proposal to increase the state universal service fee to 1.27% from 1.2%. Examiner Thomas Lyle said he wasn’t sure the increase really was needed because Verizon relied on very conservative projections, and the fund carried forward $1 million into fiscal 2003 -- 33% more than expected.

Not surprisingly, most ex-FCC commissioners end up at law firms after their tenure ends, often doing communications law. However, former chairmen have tended recently to end up as executives of corporations in the telecom, media or Internet industries. But neither trend is universal. Some of them have faded into obscurity and others have moved into new businesses entirely. For example, former Comr. Rachelle Chong (1994-1997) now heads a retail jewelry business in San Francisco.

State regulators around the country generally are relying on price caps to regulate the retail rates of their larger incumbent telcos, according to a Communications Daily survey of how the states regulate the retail rates of their local exchange providers. For smaller incumbents, the states are about evenly split between rate-of-return regulation and alternative price-based forms of retail rate regulation. CLECs in most states operate under minimal or no rate regulation. (Editor’s Note: The chart in this issue provides the state-by-state details of retail telecom rate regulation).

Low-volume, low-income consumers who depend on “lifeline” phone services will have to pay a “disproportionate” amount into the Universal Service Fund (USF) if the FCC adopts a connection-based contribution methodology, a new report by the New Millennium Research Council (NMRC) said. “A per-line charge would be harmful to the very population the fund seeks to help,” as low-volume long distance service callers, who represent 40% of consumers, would be “required to pay the bulk” of the universal service funding, said Jeffrey Kramer, senior legislative representative for AARP.

Telecom bills advanced in Okla., Fla., N.Y., Pa. Okla. Gov. Brad Henry (D) signed a bill (HB-1271) amending the state’s no-call list program to delete the requirement that a customer’s name and address appear on the list along with the telephone number being registered. Since the list is considered an official state document, the full listing had been required under the state open records laws, but this bill exempted the no-call list from open records requirements so the personal identifying info could be removed. The Fla. legislature passed a bill (SB-2178) to create a special state fund to facilitate deployment of advanced telecom services in areas where such services are lacking. The bill sent to Gov. Jeb Bush (R) doesn’t appropriate any money for the new Digital Divide Trust Fund within the Fla. State Technology Office. The bill says the fund can receive money from state appropriations, gifts, donations and matching contributions from private- and public-sector persons and entities. The program would terminate in 4 years unless extended by the legislature. The N.Y. Assembly passed and sent to the Senate a bill (AB-1652) that would expand Lifeline eligibility. The bill would make any person or family who qualifies for food stamps, subsidized school lunches, veterans disability pension, or any other federal or state assistance program for the poor or disabled eligible for Lifeline rates. Local service providers would use either customer-provided information or data from 3rd parties to verify eligibility. The bill also would require that any local service provider who received federal universal service support must offer Lifeline service to eligible subscribers. The Pa. House passed and sent to the Senate a telemarketing bill (HB-276) that would terminate the state’s no-call telemarketing list once a federal no-call list goes into effect, and all numbers on the state list would be placed on the federal list. It also would allow wireless phone numbers to be placed on the state list.

Internet service providers (ISPs) should be immune from Universal Service Fund (USF) contributions because they use, rather than “provide,” telecom services, the Information Technology Assn. of America (ITAA) said in an FCC ex parte filing. That means the FCC doesn’t have the authority to require ISPs to make USF contributions, it said, and “concerns about ’sufficiency’ or ‘competitive neutrality’ do not provide a basis to require” ISP contributions to USF. The ITAA also said the FCC should retain the ILECs’ Computer II unbundling obligations, while eliminating unnecessary regulations. Without Computer II, it said, ILECs could charge ISPs unfairly high prices, resulting in a duopoly of ILEC-affiliated ISPs and cable modems. ILECs remain dominant in provision of wholesale broadband services that ISPs use, ITAA said. The ex parte filing dealt with May 22 meetings with the FCC Wireline Bureau staff.

The Mass. Dept. of Telecom & Energy (DTE) set a June 20 deadline for public comment on whether it had legal authority to establish a state universal service fund. The DTE acted in response to a petition by Richmond Connections that sought creation of a state USF to advance access to affordable telecom services in a competitive marketplace. The DTE (Case 03-45) said it wasn’t sure whether its enabling statutes gave it such authority and asked carriers and the public to comment on whether it legally could implement a formal proposal for a state USF.

ATLANTA -- As the Supercomm convention here continues to indicate an industry at best in stasis, the leaders of co- sponsor USTA began to talk about a major push to totally deregulate the wireline industry as a way they said would boost investment, R&D and consumer interest. Others, citing the delay in getting a decision on even limited deregulation via the Triennial Review process, suggested the industry might have some difficulty getting political support for a quick change.