USTA proposed interim universal service contributions system that it said would ensure sufficient funding while giving FCC more time to develop permanent contributions mechanism. In ex parte sent to FCC Chmn. Powell and other commissioners, USTA Pres. Walter McCormick said “the most practical, lawful and risk-free course” would be use of interstate, end-user revenue as contribution base. FCC could implement “collect and remit” system in which Universal Service Administrative Co. (USAC) could set quarterly contribution percentage based on projected fund needs and projected collected revenue, McCormick said. “Carriers would then remit payments based on the application of the USAC percentage to the interstate retail revenues actually collected,” McCormick said. Other aspects of proposal: (1) Raising “safe harbor” contribution limit for wireless carriers to 20-28% range from current 15% “unless a wireless provider can determine its actual interstate retail revenue.” Safe harbor percentage should apply to wireless carriers on companywide basis, USTA said. (2) To determine interstate retail revenue, CLECs “should impute an amount equal to the subscriber line charge (SLC) assessed by the incumbent local exchange carrier in a CLEC’s service area.” Letter said CLECs should have option of “reporting the imputation based on the actual SLC amount assessed by the ILEC or an amount equal to the nationwide SLC cap.” (3) Capping recovery of administrative, billing and overhead costs that contributors to universal service support programs are allowed to include in the universal service charge collected on customers’ bills. USTA said carriers should be allowed to recover “just and reasonable costs” but it was concerned that some were “recovering excessive amounts.” Letter emphasized that plan was interim proposal and that USTA still was committed to connections-based contribution methodology.

LAS VEGAS -- FCC is moving forward on 3G spectrum allocation and should have it on meeting agenda by year-end, speakers said at CTIA Wireless IT & Internet 2002 conference here late Wed. Julius Knapp, deputy chief of Office of Engineering & Technology (OET), indicated Commission would have rulemaking lined up for agenda meeting by then on service rules for 90 MHz being made available for 3G and other advanced wireless services. Two items are expected to be lined up for Commission approval: (1) Allocation report and order. (2) Notice of proposed rulemaking covering service rules. Bush Administration had released report earlier this year that outlined way to clear total of 90 MHz for advanced wireless services, including 1710-1755 MHz used by military incumbents and 45 MHz of 2110-2170 MHz occupied by nongovt. users.

Colo. PUC overruled administrative law judge decision and said state’s universal service fund should pay support on all residential and business access lines in high-cost areas, not just first line to customer premises. Case (02R-278T) involved petition by Western Wireless and N.E. Colorado Cellular, which had contended policy of support for only primary (first) line worked to undermine spread of competition in state’s high-cost areas. ALJ had concluded that purpose of high-cost fund was universal access to network, and that purpose could best be accomplished by supporting single access line per premises. But PUC reversed that finding, ruling that lack of support for all lines virtually precluded competitive providers from challenging incumbent telcos in high-cost areas. Decision won’t become final until expiration of reconsideration period.

National Telecom Co-op Assn. (NTCA), OPASTCO and USTA opposed connection-based proposal presented by Coalition for Sustainable Universal Service (CoSus) in joint letter groups submitted Tues. to FCC Chmn. Powell. Groups said CoSus proposal submitted in FCC proceeding on contribution system for funding universal service support (USS) would exclude interexchange carriers from their obligations to contribute to funding of USS mechanisms on equitable and nondiscriminatory basis. “The CoSus proposal, which is nothing more than a blatant attempt by interexchange carriers to shrink their obligations under the 1996 Act, would endanger the long-term viability of the fund, as well as burden other telecommunications carriers in a discriminatory manner, in clear violation of Sec. 254(d),” letter said. Group said it would seek judicial review of any FCC order based on CoSus proposal because “the proposal blatantly violates both the spirit and language of Section 254.”

In 17 states, phone call to “211” can help troubled persons in need of social assistance find shortcut through bewildering maze of public- and private-sector health and human service agencies to reach ones that can offer assistance. Many other states are considering establishing 211 referral service. But valuable as that service has proved to be in places where it’s available, economic woes afflicting states, municipalities, businesses and charities may affect pace at which it spreads, observers said.

USTA told FCC officials it feared agency would adopt universal service contribution scheme that violated Sec. 254(d) of Telecom Act. In ex parte letter sent Mon. to Wireline Bureau Chief William Maher, USTA Vp Lawrence Sarjeant said Assn. was concerned bureau “may be preparing to recommend that the Commissioners adopt the connections-based proposal presented by the Coalition for Sustainable Universal Service (CoSUS) or one very similar.” Sarjeant said CoSUS proposal “is nothing less than a shameless attempt by interexchange carriers to absolve themselves of their obligation to contribute to the funding of universal service support mechanisms on an equitable and nondiscriminatory basis.” USTA said it supported alternative proposal by SBC and BellSouth “that provides for equitable and nondiscriminatory contributions by all telecommunications carriers that provide interstate telecommunications services.”

FCC will be ready to act in “late fall or early winter” on rulemaking to revise contribution methodology for Universal Service Fund (CD Oct 3 p5), new Wireline Bureau Chief William Maher told reporters Fri. in informal breakfast meeting. Maher said bureau was “moving well along” in putting together recommendations for Commission action on possible changes in current revenue-based contribution system. Bureau is looking at several proposals, 2 from industry groups suggesting move to connection-based approach, another from Federal-State Joint Board, Maher said. Bureau basically is “looking at differences between revenue-based and connection-based approaches,” he said. Maher said universal service was one of 2 first-priority proceedings under way at bureau, with other one being triennial review of unbundled network elements (UNEs). UNE review is topic of “intense ex parte sessions” with numerous groups and “we're looking to move very quickly” on issue, Maher said. Noting FCC Chmn. Powell’s recent comment that triennial review would be done in “few short months,” Maher said he couldn’t quantify timing any better than that. In response to reporter’s question, he said ILECs had raised issue of TELRIC pricing for UNE but “it would be very ambitious to do an overhaul of TELRIC pricing in this proceeding.” Maher said broadband access proceeding also remains “of highest importance” to agency although “public attention has not been as intense” lately. There are some common issues in broadband proceeding and triennial review and bureau is planning to bring both proceedings “to the Commission’s attention at about the same time frame,” Maher said. As bureau works on those issues, it’s also kept busy with pending Sec. 271 applications for 13 states, some of them combined into joint filings. Also considered important at bureau, although publicity has waned somewhat, are ILECs’ requests for tariff revisions to enable them to require security deposits, Maher said. He said “record is complete” on related Verizon request for rulemaking on “more generalized guidance on activities carriers can undertake to protect themselves against customer bankruptcies.” Pending proceeding on ILEC performance standards also is important, although agency is “trying to get the framework done first” through triennial review and broadband proceeding, he said. “Some good work has been provided by industry groups” on that issue, Maher said. Bureau chief told reporters his background in electrical engineering made him particularly interested in technology issues, especially those involving companies’ ability to innovate.

In decision delayed for more than year by broadcast economy and terrorist attacks, Maximum Service TV (MSTV) board is expected to vote Oct. 21 in favor of establishing broadcast technology center, we're told. MSTV Pres. David Donovan, who developed plan along with Victor Tawil, senior vp-engineering, has been busy selling idea to major TV groups and consumer electronic manufacturers. Reactions have been generally “supportive,” including those from at least 2 TV networks, Donovan said. We also have found wide support for lab from major TV groups, with some saying they probably would support project but hadn’t been asked yet. Only one major group executive expressed disapproval. None have been asked for, or pledged, money.

BOCA RATON, Fla. -- Proposal to use “bill-&-keep” system for intercarrier compensation could cause significant problems for rural carriers unless universal service was increased to cover shortfall in revenue, panelists said Wed., last day of USTA’s annual convention here. Idea of moving to bill & keep to replace access charges and other carrier compensation systems has been under study at FCC for at least 2 years. Commission has been looking at having one compensation system replace myriad of carrier-to-carrier payment plans, including access charges and reciprocal compensation. Carriers, especially Bells, support moving to bill & keep as that one payment system. As originally proposed in White Paper by FCC staffers, bill & keep would divide network into 2 parts, with caller’s phone company billing from caller to central point and call recipient’s network charging for completion of call. System is considered simpler than those used now.

BOCA RATON, Fla. -- FCC Comr. Martin told USTA members Tues. he wasn’t sure about suitability of “connection-based” proposal for collecting universal service contributions from carriers, comment that was duly noted by participants on universal service panel later in day. Speaking at USTA’s annual convention here, Martin said proposal by SBC and BellSouth could have “deterring effect on advanced services.”