In case brought by CompTel, U.S. Appeals Court, D.C., Thurs. asked lot of questions in oral argument about FCC’s decision to place usage restrictions on enhanced extended links (EELs), but didn’t give any indication whether it would uphold agency’s Nov. 2000 ruling. CompTel attorney Robert Aamoth told court that FCC’s decision had virtually halted CLEC use of EELs by setting use rules that were impossible to follow, even though Telecom Act supported CLEC requests for combinations of unbundled network elements (UNEs) such as EELs. FCC attorney John Ingle said agency was within its authority to place restriction on using EELs until it could make final decision in its pending UNE review proceeding on its concerns about EELs.
Senate Governmental Affairs Committee Chmn. Lieberman (D-Conn.) introduced substitute bill Wed. to create Dept. of Homeland Security (DHS) that would have separate divisions for critical infrastructure protection (CIP) and intelligence analysis. Senate continued debate Wed. evening after Sen. Wellstone (D-Minn.) introduced an amendment that would make DHS-related procurement off-limits to U.S. companies that incorporated outside country to avoid paying taxes.
National Exchange Carrier Assn. (NECA) asked FCC to reconsider Wireline Bureau’s July 30 order rejecting NECA’s formula for distributing high-cost universal service support to “average schedule companies.” Bureau rejected NECA’s proposal to base support on “expense adjustment per loop” formula, opting instead for cost per loop (CPL) method. In July 29 petition for reconsideration, NECA said 16 companies would see reduced amounts of universal service funding as result. NECA urged agency, if it decided to retain CPL formula, to approve supplemental payment mechanism for companies that would experience reductions in 2002 high-cost support. NECA makes filings on behalf of small telcos.
Homeland security and appropriations are likely to be most pressing concerns for Congress once it returns this week, but telecom and Internet issues probably will be raised and appropriations seemed likely vehicle for some measures. No telecom-related bills are on agenda for Senate, spokeswoman for Senate Majority Leader Daschle (D-S.D.) said. Senate will consider nomination of Jonathan Adelstein, Daschle aide on telecom issues, for open Democratic seat on FCC, although vote hasn’t been scheduled. First priority for Senate will be proposal to create Homeland Security Dept., spokeswoman said. Several Hill sources said it was likely that congressional session would extend past Oct.4 scheduled recess, even including “lame duck” session where lawmakers defeated in Nov. could return. “That means that September will be more like a regular month and won’t have the focus on appropriations that it usually does,” Senate staffer told us. “They'll likely save that for November or December.”
Neb. PSC approved plan of Western Wireless for advertising its universal service offering, clearing away major hurdle for start of service. Plan accepted by PSC requires Western to inform universal service customers of local calling area and geographic scope of roaming before any wireless service activation. Western was designated as eligible carrier for universal service funding in Nov. 2000, action that was upheld by Neb. Supreme Court in July. While litigation was under way, Western sought approval of its advertising plan but met rejection in Dec. 2001 and again in Feb. Approval (Case C-1889)grew out of Western petition in July asking PSC to reconsider its adverse Feb. decision. Before it actually can offer service, Western must apply to PSC for interim universal service support and have that agency set level of federal subsidy it will receive.
Wireless experts and policymakers urged wireless ISPs (WISPs) Mon. to reach voluntary agreements in areas such as interference standards to stave off new regulations and vie for new spectrum. “The Federal Communications Commission isn’t really interested in setting protocol or etiquette standards,” said Alan Scrime, chief of FCC Office of Engineering & Technology’s Policy & Rules Div., at WISP.X conference in Washington. “It’s interested in providing the environmental enablers that will allow an industry like yours to set its own standards so that it can grow.” Participants at opening of 2-day conference were told by panelists to focus on industry protocols and standards to fend off need for additional spectrum regulations. But experts also focused on what could be additional regulatory obligations in offing, including potential expansion of pool of contributors to universal service fund.
New telecom laws were signed in Neb. and N.Y. Neb. Gov. Mike Johanns (R) signed bill (LB-37) that allows state Administrative Services Dir. to borrow from Neb. universal service telephone fund to meet general state expenses. State can borrow amounts up to point where fund’s reserves cover 60 days of financial obligations. Loans not repaid within 30 days will accrue interest at 5% annually. N.Y. Gov. George Pataki signed group of 16 bills that will allow specific counties to impose wireless E911 tax of up to 30 cents monthly per number. State measures merely authorize taxation. Each county must pass individual ordinance to actually impose taxes. Bills SB-7612 though 7656) cover counties of Cattaraugus, Cayuga, Cortland, Dutchess, Herkimer, Livingston, Montgomery, Ontario, Putnam, Renssalaer, Schuyler, Seneca, Tompkins, Ulster, Wayne, Yates.
Cal. PUC’s Telecom Div. told state lawmakers that broadband shouldn’t be added to group of basic services supported by universal service subsidies. Conclusion was contained in report submitted in response to directive from state legislature last year asking PUC whether state should expand its universal service programs to require that all local carriers offer high-speed Internet access within universal service entitlement. Report said cost of adding broadband would far outweigh benefits -- quadrupling cost of universal service entitlement and forcing substantial increases to state’s monthly universal service surcharge. Report said many segments of public found current surcharge levels burdensome and would fight any proposals for increases, and didn’t see need for PUC to intervene in developing broadband market now. It cited PUC findings that broadband wasn’t essential service, and said that while 73% of Cal. households had access to broadband services, only 15% actually subscribed. For broadband to be considered essential, 2/3 of households must subscribe, report said. It also said PUC was addressing “digital divide” concerns by considering expanding Cal. Teleconnect Fund, which subsidizes high-speed Internet access for schools, libraries and community-based organizations.
Kan. Corporation Commission opened biennial review of access charges of rural incumbent telcos. Agency is required by state law to reduce rural telcos’ access charges by March 1 of each odd-numbered year as long as amount can be recovered from Kan. Universal Service Fund. KCC said it was opening case (03-GIMT-126-GIT) now in order to allow changes to be included in annual USF support calculation process that begins in Nov. to give IXCs time to figure out how to flow through their access savings to their customers. Telcos must submit proposed access reductions by Sept. 6, with staff comments due Sept 20. Hearings will be Oct. 14 and final decision is due by mid-Nov.
Unicameral Neb. legislature’s Appropriations Committee advanced bill (LB-37) that would allow state treasurer to borrow from state universal service telephone fund if needed to cover general state expenses. Transfers would be allowed up to point where fund’s reserve equaled 60 days of financial obligations. Bill was advanced in special session convened to address state budget crisis. Transfers from state USF would have to be repaid within 30 days or would accrue 5% interest annually. State projects $232 million budget shortfall for 2002-2003 fiscal year, and needs to find minimum of $100 million to meet mandatory financial and legal obligations. Bill now goes to legislature’s floor. Bill is successor to defeated proposal that would have transferred $10 million from USF to state’s general fund.