Democrats are scrambling to fill broadband gaps in rural America, with House Telecom Subcommittee Chmn. Markey (D- Mass.) drafting a bill based partly on a successful state program that mapped high-speed service holes. Markey’s bill would have NTIA draw and maintain the map, to be posted on the Internet and searchable by users, according to a copy of the discussion draft. A hearing on the bill is set next Thurs.

The FCC sent 194 E-rate applications back to the Universal Service Administrative Co. (USAC) for reconsideration of decisions to deny them. The Commission released 4 orders granting the appeals by school districts, libraries and other applicants: (1) 56 applications had been denied because applicants were deemed unable to use the technology they sought or lacking funds to pay for their portion of the discounted service. (2) 59 of the returned applications had been denied for seeking funds for ineligible services. USAC is required to deny requests if 30% or more of the funds would be for ineligible services. The FCC said USAC should consider funding the remaining 70% or in some cases waive the 30% cutoff. (3) 62 returned applications had been denied for clerical errors on forms or entering agreements with contractors too soon. (4) 17 applications were returned after USAC found applicants either were ineligible for E-rate support or violated the 30% rule. The FCC said USAC should consider how state laws differ in interpreting eligibility. In a related order, the FCC partly granted an appeal filed by Macomb Intermediate School Dist. in Mich. The school district’s application was denied because it didn’t select the most cost-effective service. The FCC said USAC should revisit the decision because Macomb is still entitled to some funding.

Congress is weighing at least a half-dozen bills to hasten broadband deployment in rural areas -- and Verizon supports some of those concepts, said Verizon Exec. Vp Tom Tauke in a briefing with reporters Mon. Tauke is enthusiastic about a project known as “Connect Ky.” which linked up potential broadband users with service providers to increase deployment to an anticipated 99-100% by year’s end, Tauke said.

Congress is weighing at least a half-dozen bills to hasten broadband deployment in rural areas -- and Verizon supports some of those concepts, said Verizon Exec. Vp Tom Tauke in a briefing with reporters Mon. Tauke is enthusiastic about the concept of “mapping” -- which Ky. used to link up potential broadband users with service providers to increase deployment to an anticipated 99-100% by year’s end, Tauke said.

The FCC levied $1 million-plus in fines against 2 telecom resellers for not contributing to regulatory funds or to file related paperwork. Wireless reseller InPhonic was fined nearly $820,000 for not paying into the Universal Service and Telecom Relay funds, not submitting worksheets showing what it owed and not registering as a contributor until after it was providing service. The FCC proposed an additional $100,000 fine for failing to get authorization to provide international telecom service. InPhonic buys air time wholesale and resells it. Global Teldata, a reseller of local, long distance and international service, was fined $236,774 for not making USF contributions, registering or submitting worksheets.

Claims that a cap on wireless universal service recipients wouldn’t be competitively neutral “ring hollow” because wireline LECs have had caps in the past, USTelecom Pres. Walter McCormick told the FCC in a letter. “Universal service caps are not new,” he said in response to concerns voiced about a recommendation by the Federal-State Joint Board on Universal Service (CD May 3 p1). “Almost a decade ago, the Commission established an indexed limit on the high- cost fund for ETCs [eligible telecom carriers] and capped the amount of corporate operations expense that an ETC could recover” through USF payments, he said. As now, the action was taken to “prevent excessive growth in the size of the universal service fund,” McCormick said, and the cap was upheld by the 5th U.S. Appeals Court, New Orleans. “Unlike the high-cost fund for incumbent ETCs, the universal service support available to competitive ETCs has never been capped,” McCormick said.

FCC Chmn. Martin has been given another week to answer questions (CD April 3 p7) originally due today (Fri.) to House Telecom Subcommittee Chmn. Markey (D-Mass.) on the Universal Service Fund program, a committee staffer said. Martin asked for more time to prepare his answers and Markey agreed.

The Kan. Corporation Commission refused to reconsider an early-April decision that it has authority to regulate the billing practices of wireless carriers getting universal service subsidies. It denied reconsideration pleas by 5 wireless carriers, saying none made a convincing case that the original ruling was wrong. The carriers said federal laws denying states jurisdiction over wireless rates and entry preempt state laws on certifying eligible telecom carriers (ETC), particularly carriers getting only federal universal service funding. The KCC (Case 06-GIMT-187-GIT) called billing integral to providing the universal service entitlement, saying the state can’t be given authority to qualify carriers for subsidies while being denied authority over provision of services those subsidies fund. The KCC also said state universal service statutes apply to the services being provided, no matter what technology is used to supply them.

Along with a cap on universal service subsidies (CD May 2 p1), the recommendations from the Federal-State Joint Board on Universal Service late Tues. could hit wireless carriers with a 2nd reduction in their payments. The Joint Board urged the FCC to “consider abandoning or modifying the so- called identical support… rule.” The rule bases competitive carrier funding on the same per-line support given to the rural ILEC operating in the same area.

A group of federal and state regulators has urged capping subsidies to rural telecom providers to slow booming Universal Service Fund growth. At our deadline, the Federal- State Joint Board on Universal Service recommended that the FCC impose an interim “emergency” cap on high-cost support that “competitive eligible telecom carriers” can receive in each state, based on the average amount of CETC support distributed in each state in 2006. CETCs generally are wireless providers.