The Kan. Corporation Commission (KCC) concluded federal law hasn’t preempted its authority to impose billing standards on wireless carriers that receive universal service subsidies. The KCC said it has authority under both state and federal law to enforce state billing standards that are consistent with federal truth-in-billing rules, and it has authority under federal law to qualify wireless companies as eligible telecom carriers (ETC) for universal service funding. It said its proposed billing standards for wireless ETCs are clearly related to its obligation of ensuring that universal service subsidies are used for their intended purpose. The KCC came to this conclusion in a generic proceeding on billing standards for all local service providers (Case 06-GIMT-187-GIT). The KCC said that while one section of state law denies it any jurisdiction over wireless services, another section gives it authority to designate telecom providers as ETCs and to exercise the full authority available to states under federal law. Wireless carriers have objected to the proposed billing rules as being too wireline oriented and unworkable if applied to wireless service. They also have argued that applying the billing standards only to wireless ETCs and not to all wireless carriers would be discriminatory. The KCC said it needed to resolve the fundamental jurisdictional question before addressing any substantive issues relating to the proposed standards.

“Congress must act to restore our global leadership in broadband networks,” Sen. Smith (R-Ore.) said Tues. in prepared remarks to the Fiber to the Home Council annual meeting. Internet services, not voice, fuel innovation, he said, urging Congress to pass a bill (S-711) he co-sponsored with Sens. Dorgan (D-N.D.) and Pryor (D-Ark.) to allow annual use of $500 million from the Universal Service Fund (USF) to extend rural broadband. Smith introduced the bill Feb. 28. Smith also supports S-234 to bolster wireless broadband and municipal investment in Wi-Fi networks. Smith said he and Sen. Kerry (D-Mass.) will introduce a bill to push broadband by providing credits for research, depreciation for broadband equipment and credits for deploying broadband services to charitable and local emergency response entities. The bill would require a Dept. of Treasury study of depreciability of fiber equipment used in telecom services, Smith said: “All of these tax incentives will be temporary in order to spur broadband deployment over the next few years.”

“Congress must act to restore our global leadership in broadband networks,” Sen. Smith (R-Ore.) said Tues. in prepared remarks to the Fiber to the Home Council annual meeting. Internet services, not voice, fuel innovation, he said, urging Congress to pass a bill (S-711) he co-sponsored with Sens. Dorgan (D-N.D.) and Pryor (D-Ark.) to allow annual use of $500 million from the Universal Service Fund (USF) to extend rural broadband. Smith introduced the bill Feb. 28. Smith also supports S-234 to bolster wireless broadband and municipal investment in Wi-Fi networks. Smith said he and Sen. Kerry (D-Mass.) will introduce a bill to push broadband by providing credits for research, depreciation for broadband equipment and credits for deploying broadband services to charitable and local emergency response entities. The bill would require a Dept. of Treasury study of depreciability of fiber equipment used in telecom services, Smith said: “All of these tax incentives will be temporary in order to spur broadband deployment over the next few years.”

The Satellite Industry Assn. has been meeting with FCC aides to lobby for reverse auctions to be instituted for distributing universal service subsidies, according to several filings. The satellite industry has been paying into the Universal Service Fund, SIA Exec. Dir. David Cavossa said, but won’t be eligible to receive subsidies until the FCC declares broadband services eligible. If satellite operators ask for subsidies only for the customer dish and modem, the service could be less expensive than running cable, fiber or telephone lines to rural, remote areas, said Cavossa. SIA is proposing a pilot USF program to test its hypothesis in the market, Cavossa said.

The Kan. House Energy & Utilities Committee plans a March 13 hearing on SB-49, which would require VoIP providers that interconnect with the public switched phone network to pay into the state universal service fund. Current law is silent on whether VoIP providers are obligated to support the state fund. The bill would allow VoIP providers to recover fund contributions from customers.

The Kan. House Energy & Utilities Committee plans a March 13 hearing on SB-49, which would require VoIP providers that interconnect with the public switched phone network to pay into the state universal service fund. Current law is silent on whether VoIP providers are obligated to support the state fund. The bill would allow VoIP providers to recover fund contributions from customers.

Witnesses were in general agreement on reforming but maintaining the Universal Service Fund (USF), at a House Small Business Committee hearing on “advancing the innovation agenda” via telecom and IT. The 2-panel hearing featured exclusively company executives or lobbyists, so there was little disagreement. Main issues were USF reform, the research & development tax credit, Sarbanes-Oxley reform and net neutrality; after the hearing, Committee Chmn. Velsquez said moving forward on tech issues is on the Democratic agenda, but other issues will take precedence in the short term.

Witnesses were in general agreement on reforming but maintaining the Universal Service Fund (USF), at a House Small Business Committee hearing on “advancing the innovation agenda” via telecom and IT. The 2-panel hearing featured exclusively company executives or lobbyists, so there was little disagreement. Main issues were USF reform, the research & development tax credit, Sarbanes-Oxley reform and net neutrality; after the hearing, Committee Chmn. Velsquez said moving forward on tech issues is on the Democratic agenda, but other issues will take precedence in the short term.

Auctions can be a workable, effective way to disburse universal service subsidies, panelists at a Progress & Freedom Foundation seminar said Thurs. “Our knowledge of how to run auctions in complex situations has grown,” said Stanford U. Economics Prof. Paul Milgrom, considered a national expert on the design of govt. auctions. “I'm astonished how far we've come in auction design since the 1970s,” added Vernon Smith, George Mason U. economics professor and auction expert.

Broadband should be part of the Universal Service Fund (USF) program, rural senators told a Thurs. Senate Commerce Committee hearing. The FCC can do that, but Comr. Copps doubts he can get the other 2 votes needed for a rulemaking clarify that broadband can be included in USF, he said. Panelists favoring USF-sponsored broadband said congressional action would be the quickest route.