FCC declined to specify what Internet security measures schools and libraries must use in order to continue to receive E- rate funding for Internet facilities through Universal Service Fund (USF). In decision released Thurs., Commission said local communities should select appropriate security measures, schools and libraries didn’t have to certify the effectiveness of measures and they wouldn’t be liable if measures failed.

Coalition charged with coming to consensus on future of universal service offered policymakers 7 options for funding program in coming years as new technology makes current system less practical. In report Thurs., Consumer Energy Council of America (CECA) deliberately didn’t pick one of 7 options, saying Congress, FCC and Federal-State Joint Board on Universal Service should have full range of thinking by group. Broad-based organization included representatives of state and federal govt., consumer groups and wide variety of industry including long distance companies, incumbent LECs, CLECs and wireless providers. About 60 people were listed in report, although not all of them attended every meeting. Report will be submitted to FCC as ex parte filing and will be sent to key members of Congress.

Rather than moving immediately to subsidize advanced services as part of universal service program, FCC ought to form task force to determine “how and when” such services should be added, group of telecom experts will recommend in report to be issued today (April 5). Some 50 people, assembled by Consumer Energy Council of America (CECA), spent 6 months studying ways to improve universal service. Group decided that program was “vital to the social wellbeing of all Americans” and should be continued, but it stopped short of recommending expansion without more study. Instead it said Technology Task Force (TTF) should be formed to advise FCC and Federal-State Joint Board on Universal Service. Task force would be composed of “broad balance of stakeholders” to offer variety of viewpoints and would monitor development of advanced services on more continuous basis than is done now, CECA group recommended. Group, which is chaired by former White House and FCC official Kathleen Wallman, also recommended: (1) “Model state programs” for distributing low income support. (2) Better ways of publicizing low income support programs. (3) Streamlined process for gaining certification as eligible telecom carrier (ETC). State and federal regulators could work together to improve ETC process, CECA group said, using input from states that already have made improvements. (4) Program, coordinated by Universal Service Fund, to encourage deployment of advanced services through efforts of federal, state and local govts.

FCC hopes to take action on CLEC access charges “in the very near future,” Common Carrier Bureau Chief Dorothy Attwood told rural telephone executives attending National Telephone Cooperative Assn.’s annual Legislative Conference Wed. Issue has been “incredibly hard” for FCC, she said. On one hand, CLECs depend on that revenue to finance expansion, she said, and on other hand, long distance companies can’t afford to pay high rates because competition is driving down their end-user rates. “The worst answer is not to resolve [it],” she told group, saying she was aware that some NTCA members had CLEC operations that could be affected by FCC decision.

Rep. Deal (R-Ga.) introduced legislation that would remove caps and limitations on universal service support by amending Sec. 254 of Communications Act. HR-1171,referred March 22 to House Commerce Committee, is companion to S-500 (CD March 12 p6), by Sen. Burns (R-Mont.) and several rural senators. Bills would eliminate restrictions on size of high-cost support, lift caps on how much universal funding individual service providers could receive, prevent FCC from enforcing or reimposing most caps or limitations. National Telephone Cooperative Assn., which supports measure, estimates that “small, independent telecommunications carriers will lose out on $198 million this year if the caps are not removed.”

LAS VEGAS -- Wireless industry pitches for more spectrum were almost as prevalent at NTIA convention here as wireless calls themselves. Customer demand for wireless spectrum will exceed supply by 2004 or 2005, Verizon Wireless Vp-Legal Mark Tuller said, and industry will need twice as much spectrum by 2010. He said increasing spectrum efficiency and technology couldn’t meet demand, and key sources were likely to be military spectrum (1755- 1850 MHz) and 2 GHz bands used by MMDS and ITFS wireless communications and educational TV services.

S.D. doesn’t have to actually provide all services included by FCC in universal service entitlement in order to receive universal service subsidies. State’s highest court said that if carrier was “capable” of offering those services, it could obtain eligible telecom carrier (ETC) status that qualified it to receive support from federal and state funds. Court was ruling on appeals of lower court decision to remand back to PUC decision denying Western Wireless ETC status for its fixed wireless local services so PUC could take another look at public interest implications. Supreme Court said it didn’t want to “hamstring” PUC, but said it was “vital” that there be minimal delay in allowing Western subsidiary GCC License Corp. to begin operations.

AT&T said it was “encouraged” that FCC shortened lag time between carrier’s accrual of revenues and assessment of its Universal Service Fund (USF) contribution (CD March 15 p5). However, that won’t solve problem entirely, carrier said. AT&T said it looked forward to participating in FCC’s upcoming proceeding to consider ways to simplify entire USF cost recovery process and eliminate lag entirely.

FCC modified methodology used to assess contributions carriers make to federal universal service support mechanisms by reducing interval between accrual of revenues and assessment of contributions based on those revenues. To base assessments on revenue data more reflective of current market conditions, interval was reduced to 6 months from one year. Agency said existing process “may place carriers with decreasing interstate revenues at a competitive disadvantage as compared to carriers with stable or increasing interstate revenues.” Some carriers had complained that basing contribution on year-ago revenue was unfair. They said if their revenue went down in current year they would end up paying greater percentage of their current revenue into universal service fund than other carriers. Agency said it still thought current methodology was “competitively neutral” and met Telecom Act but “we conclude that reducing this interval will be superior to the current methodology by basing assessments on revenue data that are more reflective of current market conditions.” FCC said it decided against alternative of basing contributions on current revenues as AT&T sought because it would increase reporting burdens on carriers.

Rural telcos warned FCC in reply comments filed Mon. that altering Multi-Assn. Group (MAG) plan to reform rural universal service and access charge programs would destroy it. Alliance of Incumbent Rural Independent Telephone Companies (AIRIT), coalition of 90 companies formed after initial comments were filed Feb. 26 on MAG plan, said it was based on finely crafted compromises. They said rural companies bought into plan only if all terms were retained to reflect those compromises: “In good faith, rural companies have generally endorsed the efforts of their various associations to work together to develop a ‘holistic’ plan for change in access charges, the universal service fund and subscriber line charges.” Companies expected FCC to either adopt or reject it, they said. However, many parties since have proposed changing it and rural telcos “must act to protect their rights,” AIRIT said. Comments “clearly demonstrate the intent of other… parties and interest groups to utilize the MAG and RTF [plans] as forums to advance their business agendas as opposed to the public interest,” they said. Telcos said they were even more concerned because alternative Rural Task Force (RTF) plan appeared to be inconsistent with Telecom Act. They said RTF would have to be changed to clarify its “disturbing aspects.” AIRIT said rural telcos were confused about RTF and didn’t realize it had problems: “The consensus reached by the rural industry as reflected in the MAG proposal did not contemplate the implementation of the troubling aspects of the RTF… plan.” Telcos said problem centered on RTF plan to convert universal service funding to per- line basis and make it portable.