The first days under House Speaker Paul Ryan, R-Wis., should encourage telecom industry stakeholders, Washington veterans told us. The 45-year-old Ryan, a 2012 vice presidential candidate and most recently Ways and Means Committee chairman, kept a low profile on telecom issues since election to the House in 1998. But his focus on tax and regulation has often led to backing certain telecom measures over the years, with focuses ranging from E-rate to USF to the fairness doctrine. He assumed the speakership after the retirement of Rep. John Boehner, R-Ohio, at October’s end, following weeks of GOP leadership uncertainty, and a crucial hire in Ryan’s leadership office showcases strong ties to industry.

The first days under House Speaker Paul Ryan, R-Wis., should encourage telecom industry stakeholders, Washington veterans told us. The 45-year-old Ryan, a 2012 vice presidential candidate and most recently Ways and Means Committee chairman, kept a low profile on telecom issues since election to the House in 1998. But his focus on tax and regulation has often led to backing certain telecom measures over the years, with focuses ranging from E-rate to USF to the fairness doctrine. He assumed the speakership after the retirement of Rep. John Boehner, R-Ohio, at October’s end, following weeks of GOP leadership uncertainty, and a crucial hire in Ryan’s leadership office showcases strong ties to industry.

WTA members voiced doubts about a broadband cost model and some other aspects of a potential FCC overhaul of high-cost USF mechanisms for rural rate-of-return telcos. Arvig Enterprises, 3 Rivers Communications and the Range family of telecom companies said they have yet to determine the likely impact of possible future USF support on their operations “due to the number of significant details that remain unresolved” in two-track proposals to give rural telcos the option of receiving support based on a broadband cost model or based on updated USF mechanisms. The companies “expressed concerns regarding the general accuracy of the price cap-based model for rural companies, as well as their present inability to determine the amount of Model-based support they might receive and their associated build-out obligations,” said a WTA filing posted Monday in docket 10-90 on their meeting with an FCC staffer. They said their ability to serve remote, high-cost customers would be undercut if the FCC reduces a cap on model-based support per location. “They also noted that many state universal service funds are tied to the existing federal mechanisms, such that shifts to Model-based support could mean loss of state support by some rural carriers,” the filing said. “The companies also expressed concern that the proposed bifurcated rate-of-return path was being developed in a rapid and untested manner, and could well entail a number of unforeseen consequences. They pointed particularly to the increased recordkeeping and accounting complexities and costs and the difficulties of accurately and equitably allocating investments and associated operating expenses.” In addition, they suggested the FCC’s current 10/1 Mbps broadband USF definition won't be “reasonably comparable to urban broadband speeds and applications for very long” (such reasonable comparability is a statutory USF standard). Whatever high-cost support changes the FCC makes, the companies stressed the need for “stability, predictability and sufficiency." WTA made similar filings (here and here) on behalf of Range and Volcano Communications after meetings with other FCC staffers.

WTA members voiced doubts about a broadband cost model and some other aspects of a potential FCC overhaul of high-cost USF mechanisms for rural rate-of-return telcos. Arvig Enterprises, 3 Rivers Communications and the Range family of telecom companies said they have yet to determine the likely impact of possible future USF support on their operations “due to the number of significant details that remain unresolved” in two-track proposals to give rural telcos the option of receiving support based on a broadband cost model or based on updated USF mechanisms. The companies “expressed concerns regarding the general accuracy of the price cap-based model for rural companies, as well as their present inability to determine the amount of Model-based support they might receive and their associated build-out obligations,” said a WTA filing posted Monday in docket 10-90 on their meeting with an FCC staffer. They said their ability to serve remote, high-cost customers would be undercut if the FCC reduces a cap on model-based support per location. “They also noted that many state universal service funds are tied to the existing federal mechanisms, such that shifts to Model-based support could mean loss of state support by some rural carriers,” the filing said. “The companies also expressed concern that the proposed bifurcated rate-of-return path was being developed in a rapid and untested manner, and could well entail a number of unforeseen consequences. They pointed particularly to the increased recordkeeping and accounting complexities and costs and the difficulties of accurately and equitably allocating investments and associated operating expenses.” In addition, they suggested the FCC’s current 10/1 Mbps broadband USF definition won't be “reasonably comparable to urban broadband speeds and applications for very long” (such reasonable comparability is a statutory USF standard). Whatever high-cost support changes the FCC makes, the companies stressed the need for “stability, predictability and sufficiency." WTA made similar filings (here and here) on behalf of Range and Volcano Communications after meetings with other FCC staffers.

The FCC should get going on reforming its USF contribution system, ITTA and the Montana Telecommunications Association (MTA) said Friday. There is “growing pressure on the Universal Service Fund as the Commission considers expanding the scope of services supported by USF programs,” said midsize-telco group ITTA in a filing posted in docket 10-90 summarizing an Oct. 28 meeting with Gigi Sohn, counselor to FCC Chairman Tom Wheeler. “We urged the Commission to undertake USF contribution reform and broaden the base of contributors before taking any further steps to modify the Lifeline program to include support for broadband services.” MTA also urged the FCC to address contribution reform, “particularly given the increasing pressure on the high cost reform efforts caused by budgetary restraints and the shrinking contributions base,” the association said in a filing on its meetings with aides to Wheeler and Commissioners Mike O'Rielly and Jessica Rosenworcel. An FCC spokesman said the issue was before a federal-state joint board. Carriers currently contribute 16.7 percent of their interstate and international telecom revenue to USF, a rate that has trended up over the years as subsidies have increased and the industry revenue base has eroded. Carriers generally pass the fees along to consumers.

Few fireworks erupted during the Senate Commerce Committee reconfirmation hearing of FCC Commissioner Jessica Rosenworcel Wednesday. The White House nominated the former Democratic staffer for the committee for another five-year term this summer. Senators used the hearing to ask her about the agency’s progress on programs like Lifeline and E-rate, stand-alone broadband, spectrum policy and net neutrality.

Few fireworks erupted during the Senate Commerce Committee reconfirmation hearing of FCC Commissioner Jessica Rosenworcel Wednesday. The White House nominated the former Democratic staffer for the committee for another five-year term this summer. Senators used the hearing to ask her about the agency’s progress on programs like Lifeline and E-rate, stand-alone broadband, spectrum policy and net neutrality.

House Communications Subcommittee members peppered economists with questions about the FCC’s net neutrality order, but failed to get definitive proof of any market harm, despite three of the four witnesses criticizing the order and warning of possible uncertainty. Some members also criticized witnesses for ties to industry, whether telecom or tech. Economists argued the harms would manifest later and emphasized the market uncertainty, concerns that subcommittee Republicans embraced and echoed.

Incumbent telcos opposed the FCC's tech transition proposals for assessing the adequacy of IP-based services intended to replace legacy copper-based phone services being discontinued. They said the commission’s proposed standards could slow the IP transition and broadband deployment, with AT&T suggesting it would be unlawful. Rural carriers asked the agency to clarify that they were covered by a rural exemption. But competitors, consumer groups, public safety groups, state regulators, electric power groups and others voiced varying degrees of support for proposed criteria, and some suggested additional criteria, including on affordability.

House Communications Subcommittee members peppered economists with questions about the FCC’s net neutrality order, but failed to get definitive proof of any market harm, despite three of the four witnesses criticizing the order and warning of possible uncertainty. Some members also criticized witnesses for ties to industry, whether telecom or tech. Economists argued the harms would manifest later and emphasized the market uncertainty, concerns that subcommittee Republicans embraced and echoed.