CHICAGO -- Long-promised innovations like ultra-speedy fiber networks and smart cellphones that replace wallets are here, executives of top communications companies said Wed. at the NXTcomm show. In his speech, Verizon CEO Ivan Seidenberg said his company, now trialing 100 Mbps speed in its FIOS Internet service, this fall will begin using “GPON” technology that boosts speeds four times downstream and eight times upstream.

CHICAGO -- Everything’s becoming reliant on broadband but the Universal Service Fund (USF) still is used to “facilitate voice competition in areas where it’s not economic to support even one provider,” FCC Chairman Kevin Martin said at NXTcomm Tuesday. The USF sorely needs to be “updated to facilitate broadband,” he said. Martin addressed the group remotely; his second child is due any day and he wanted to stay close to his wife in Washington, FCC staff members said.

CHICAGO -- Everything’s becoming reliant on broadband but the Universal Service Fund (USF) still is used to “facilitate voice competition in areas where it’s not economic to support even one provider,” FCC Chairman Kevin Martin said at NXTcomm Tuesday. The USF sorely needs to be “updated to facilitate broadband,” he said. Martin addressed the group remotely; his second child is due any day and he wanted to stay close to his wife in Washington, FCC staff members said.

A New Jersey Senate committee advanced a bill (SB-2777) that would bar state control of VoIP services except in very limited areas. The bill would deny state agencies regulatory jurisdiction over VoIP service except for 911 fees, telecom relay service fees, universal service fund assessments and intercarrier compensation.

A New Jersey Senate committee advanced a bill (SB-2777) that would bar state control of VoIP services except in very limited areas. The bill would deny state agencies regulatory jurisdiction over VoIP service except for 911 fees, telecom relay service fees, universal service fund assessments and intercarrier compensation.

Oregon Gov. Ted Kulongoski (D) signed a bill (SB-894) authorizing the Public Utility Commission (PUC) to alter rules on the state universal service fund to conform them to changes in federal law and policy. The law says the PUC can conform state rules to federal principles to the extent appropriate and consistent with keeping a competitively neutral and nondiscriminatory state universal service program. In another move, the legislature referred to a conference committee a bill (HB-2872) barring use of handheld cellphones and other handheld wireless communications devices while driving. The bill went to conference after the House rejected a Senate amendment reducing the maximum fine for cellphone violations to $90 from the House’s $360.

Delivery Agent will provide its first music e-commerce store for the Pussycat Dolls and likely other groups signed to Universal Music Group’s Interscope Geffen A&M Records, the companies said. Delivery Agent provides “shopping-enabled programming” online for TV programs, films, sports and publishing. The online store is available at the band’s website, www.pcdmusic.com, and at Delivery Agent’s SeenON branded site for the group, www.seenonpcd.com. Visitors can buy items featured in the band’s music videos, concert footage and other media. Financial growth in TV and film product placement led Interscope to use the service for music, said Erin Yasgar, vice president of new media. Delivery Agent has raised $35 million in venture capital funding, including a third round of $18.5 million in May.

The best use of roughly $17 million Qwest gets annually from Mont. in universal service subsidies would be to provide many of its 300,000 customers there with monthly bill credits of $2-$5 in urban/suburban areas and up to $11 in rural areas, a consultant hired by the Mont. PSC to review Qwest’s use of the subsidies suggested. The PSC in 2005 opened a docket to review how Qwest universal service funds benefit customers. Consultant Larry Blank said the bill credits would be the most effective way to equalize rates between rural and urban areas, in line with universal service goals. He said the credit should be recalculated each year if Qwest’s draw from the universal service fund changes. Qwest didn’t comment directly on Blank’s report but said its first priority is serving customers. It said it treats the federal universal service subsidies as part of its overall revenue. Qwest is to file its initial briefs in the case July 19.

“Dramatic shifts in the way universal service support is funded” reflect changes in the telecom industry, the FCC said in its 2005 “Telecommunications Industry Revenues” report, the latest in its annual series. The USF is funded via industry long distance, or “toll” revenue, which has seen continual drops, most recently from $71 billion in 2004 to $69 billion in 2005, the report said. Counting international toll revenue, the total USF base in 2005 was $75.3 billion, data show. One big change, said the FCC: Traditional long distance providers who in 1997 accounted for more than 80% of USF contributions now contribute less than 40%. Other items: (1) Overall wireless industry revenue grew 9% in 2005 to $107 billion. ILEC revenue fell about 2% to $104 billion. CLEC revenue rose 6% to $22 billion in 2006, one of few categories with more recent data.

Senate Commerce Committee members said Tues. it’s not realistic to revamp the Universal Service Fund in 6 months at the start of the 2008 campaign cycle. Act now, members told FCC Comr. Tate, who serves as Joint Board chair. Tate endured tense, sometimes hostile questioning by members from both sides of the aisle over a recent Board recommendation to cap funding for competitive eligible telecom carriers (CETC), which are mostly wireless. To better understand how its decisions on rural service affect Americans, the FCC should move to the Me. backwoods, an official from that state said.