State Dept. clarified rules for U.S. universities exporting communications satellite data, responding to concerns by academic community that govt. satellite export control regime restricted disclosure of space research information in classrooms. Interim final rule amends Munitions List regulations for commercial communications satellites and components, saying transfer of satellite export oversight to State Dept. from Commerce Dept. in 1999 doesn’t prevent academic institutions from exchanging, without a license. State Dept. developed rule after consulting with Office of Science & Technology Policy, Dept. of Defense, NASA, NOAA. Amendment addresses exports related to: (1) Accredited institutions of higher learning. (2) Govt. research centers. (3) Established govt.-funded research centers. Those facilities must be located in: (1) NATO member nations. (2) Non-NATO ally nations. (3) Member countries of European Space Agency or European Union. Other guidelines apply, including requirement that resultant research information be “published and shared broadly within the scientific community and is not restricted for proprietary reasons.” Academic exemption from Munitions List controls doesn’t give eligible institutions authority to provide services or data “for the integration of the satellite or the spacecraft to the launch vehicle.” Defense services or technical data under Missile Technology Control Regime are ineligible for exemption -- (202-663-2700).

ITU’s World Telecom Development Conference, 10-day meeting that ended late Wed. in Istanbul, led to agreement on action plan that included regulatory reform initiatives and R&D for network planning in areas such as interconnection and spectrum planning. Plan also called for study on “workable and enforceable” universal access funding mechanism. Plan approved at conference, which focused on digital divide issues, also cited need to encourage manufacturers to develop low-cost, scalable technology for broadband applications that would promote access in rural and other underserved areas. “If we all commit ourselves to the conclusions of this conference, the low teledensities in least and developing countries can be tripled or even quadrupled before our next World Telecommunication Development Conference, Internet penetration will reach at least 25% of the population and every school will be wired or unwired, making information accessible to every child in the world,” said Hamadoun Toure, dir.-ITU Telecom Development Bureau. Istanbul Action Plan includes 6 programs, including one on regulatory reform that will assist regulators in developing policies, legislation, rules. Point of program, ITU said, is to provide solutions for “effective regulation, particularly in response to convergence trends whereby similar services can be delivered over different types of networks.” Separate program will focus on technologies and telecom network development, including traffic and demand forecasting, interconnection, interoperability, quality of service standards for wireline and wireless networks, terrestrial mobile communications, broadcasting. “Priority will be given to spectrum management and radio monitoring, broadcasting, network planning, mobile terrestrial communications and innovative networks,” ITU said. In area of finance, another program is examining how to assist developing countries in creation of policies such as “cost-orientation pricing, with a view to fostering equitable and affordable access to innovative and sustainable services.” Program will center on “new financing schemes” for developing telecom and information networks, including broadcasting, universal access programs and “determining cost of retail services and cost-based interconnection rates.” Action plan created program for least-developed countries that proposed new funding mechanism. For next 4 years, biennial approach will be used to provide assistance to 12 countries for 2 years instead of 6 countries each year. Program will develop rural telecom services and center on “restructuring to bring about liberalization and competition and possibly privatization as applicable with the objective of inducing faster network growth and better management.” Action plan also lays out new studies ITU will undertake in next 4 years in areas such as domestic enforcement of telecom laws and regulations by national regulatory authorities and satellite regulation. Study areas include spectrum valuation that would let developing countries “elaborate a national frequency fee calculation model for the various changes and fees levied on spectrum users.”

Mo. PSC established $4.8 million state universal service fund to subsidize Lifeline service for low-income and disabled residential customers. Fund (Case TO-98-329) will contribute up to $3.50 monthly toward an eligible customer’s monthly local service bill. PSC estimated telecom carriers’ contributions would amount to 0.27% of intrastate revenues, which they can pass on to their customers through phone bill surcharges. PUC later this spring will set exact surcharge amount and date when contributions must begin.

State regulators nationwide have swung overwhelmingly to price-based regulation for retail services of their largest incumbents, with only 7 states having their dominant incumbents under rate-of-return regulation. For smaller incumbents, states are about evenly split on whether these companies operate under rate-of-return or an alternate price- based form of regulation. For CLECs, all states require some form of certification or registration and all but 4 require filing of CLEC tariffs or price lists, but states are fairly evenly split on whether to monitor CLEC rate changes. These were principal findings of 50-state survey by Communications Daily on how states regulate retail rates of their local exchange providers. (Editor’s Note: Print subscribers who didn’t receive detailed White Paper can receive e-mail copy by contacting Betty Alvine at 800-771-9202 ext. 201, or balvine@warren-news.com).

ITU is set to release reports at World Telecom Development Conference (WTDC) in Istanbul this week showing that while gap in telephony access between developed and developing world is narrowing, divide for high-speed Internet access is widening. WTDC, which starts today (Mon.) and runs through March 27, is poised to take up international digital divide issues, including role that regulators play. Group of Asian-Pacific countries has resurrected for consideration controversial recommendation for cost-sharing arrangements involving international Internet connections. Other proposals emphasize impact of economic downturn on efforts to extend broadband access in developing countries, while still others focus on role of women and need for human resource development in information and communications technology (ICT).

Ill. Commerce Commission (ICC) ruled CLECs could receive high-cost support from state universal service fund but must cap their residential rate at $20.39 benchmark for affordable rates. Agency said CLECs with fewer than 35,000 lines could receive fund support with no rate restrictions. Ill. is 2nd state to make adherence to benchmark rate condition for CLECs to receive universal service subsidies. Other is Neb. ICC also ruled that all state-authorized local exchange and interexchange providers must contribute to fund but could pass their contributions to ratepayers via surcharges. ICC also reaffirmed Jan. decision setting initial fund size at $10.5 million with schedule of reductions to reduce it to $8.7 million by 2005.

Neb. bill that would give PSC authority to regulate wireless billing and customer service practices if wireless carrier opted to receive state universal service funds has cleared unicameral legislature’s committee process and awaits floor action. Measure (LB-1286) would require wireless carriers to register their billing and service operations with PSC if they sought support from state universal service fund for services or facility upgrades. Wireless carriers accepting support would have to provide company contact information and file periodic reports on complaints customers have made against carrier in any venue. With just 3 weeks left in this year’s session, legislative floor leaders will have to give this bill high priority if it’s to have chance at passage.

Reacting to Utah Supreme Court decision last week (CD March 8 p7), Western Wireless Vp-Regulatory Affairs Gene DeJordy said Utah was only state to conclude that company’s designation as additional eligible telecom carrier (ETC) wasn’t in public interest. Utah’s high court backed earlier decision by Utah PSC, which had designated Western Wireless as ETC in nonrural areas served by U S West, with eligibility to receive state universal service support contingent on carrier not charging more than affordable basic rates. Court held it wouldn’t be in public interest to designate Western Wireless as additional ETC in rural areas served by incumbent carriers, saying designation would increase demands on state universal service fund without offsetting public interest benefits. DeJordy said 10 states had designated Western Wireless as ETC in rural areas: Colo., Ia., Kan., Minn., Neb., Nev., N.D., Okla., S.D. and Tex., as well as by FCC on Pine Ridge Reservation in Wyo. Western Wireless submitted “extensive” testimony in Utah PSC public hearing on public interest benefits realized in other states where multiple ETCs had been designated, DeJordy said: “The unfortunate thing about this case is that the consumer is the loser. We have clearly established in the states where we are providing universal service that there are extensive public interest benefits to competition, better prices, better service quality, new services.” DeJordy said it was “unfortunate that the Utah commission has chosen to ignore that and instead chose to protect the incumbent telephone company from competition.” One potential next step for Western Wireless would be to seek rehearing of case before Utah Supreme Court. More likely scenario would be to seek to clarify issues raised in case from FCC, although company hadn’t decided what it would do next, DeJordy said. Western Wireless could raise specific set of issues in Utah case or more generally ask FCC what relevant criteria should be for state commissions to consider in reviewing public interest in such cases, he said.

FCC said it would seek comment on BT N. America request for clarification of obligations of video distribution service providers to contribute to universal service fund. BT said “similarly situated entities transmitting video programming on a non-common carrier basis, that do not compete with common carriers, should be exempted from contributing.” FCC said in March 8 notice that comments would be due 21 days after notice was published in Federal Register.

Utah Supreme Court upheld 2000 PSC decision to deny wireless carrier WWC Holdings status as eligible telecom carrier (ETC) qualified to receive universal service subsidies in rural areas. WWC has ETC status in areas served by Qwest, but PSC denied it ETC status in rural areas served by independent incumbent telcos on ground that that would increase demands on state universal service fund without any offsetting public benefits. Court said PSC’s denial of ETC status to WWC was legal because it wasn’t based on effects on state fund but rather on “substantial record” showing lack of public benefits from subsidized WWC rural wireless services. Court also upheld PSC requirement that WWC price its wireless universal service offering at or below specific “affordable” base rate in order to receive fund subsidies. Court said condition didn’t constitute forbidden state wireless ratemaking. Court (Case 20000835) said purpose of rate cap was to ensure fund supported affordable rates in high-cost areas without providing windfall to ETC. Decision said cap wasn’t wireless ratemaking because it applied only to WWC under “discrete and voluntary” circumstance of accepting universal service subsidies. If WWC chose to forgo subsidies, it would remain free to charge market rates for its services, court said.