CTIA said it supported Western Wireless request that FCC give it eligible telecom carrier (ETC) status so it could qualify for universal service funding for service at Pine Ridge Reservation in S.D. CTIA said determining whether FCC had jurisdiction was “balancing test” since primary jurisdiction usually was with state regulators. However, this is clear-cut, CTIA said. Because population of Pine Ridge is “overwhelmingly Native American,” Western Wireless’s service isn’t subject to state jurisdiction, “but is entirely within the scope of the FCC’s authority,” CTIA said. S.D. PUC denied Western Wireless’s request for statewide ETC status but CTIA said this petition was separate from that.

As expected, Senate Communications Subcommittee Chmn. Burns (R-Mont.) introduced bill that would remove caps and limitations on universal service support by amending Sec. 254 of Communications Act. S-500, which is co-sponsored by Senate Minority Leader Daschle (D-S.D.)and Democratic Sens. Baucus (Mont.), Dorgan (N.D.) and Lincoln (Ark.) would: (1) Eliminate restrictions on size of high-cost support (2) Lift caps on how much universal funding individual service providers could receive. (3) Prevent FCC from enforcing or reimposing “caps or limitations on support mechanisms for rural telephone companies or exchanges they acquire based on fund size or other considerations unrelated to the sufficiency of support.” Burns said bill “would provide rural telephone companies with the resources they need to provide their customers the same high-speed Internet services that families living in urban areas enjoy.” Staffer said fact that bill had 4 Democratic co-sponsors and no Republicans “should not be read into too deeply” and Burns said expected full bi-partisan support “A lot of folks [from Congress] in rural areas obviously are interested in high-speed broadband deployment,” staffer said. Gary Lytle, USTA interim pres., said bill would enable companies “to make critical network upgrades and provide a platform they can build on” to deliver advanced services. National Telephone Coop Assn. (NTCA) said lifting of caps was “long overdue.” NTCA Pres. Michael Brunner said “small independent telecommunications carriers lost out on $130 million last year in vital support due to these caps.” Bill was referred to Senate Commerce Committee.

Sen. Burns (R-Mont.) said Congress needed to address rules governing telco access to public lands to ease carrier deployment of communications infrastructure including fiber cable and wireless towers, he told USTA conference Thurs. USTA attendees asked him whether Congress planned to take up issue, which they said could facilitate broadband service deployment, particularly in western states such as Mont. Burns said roadblocks industry faced in getting swift approval for public rights-of-way weren’t limited to western states, pointing out that W.Va. Sen. Byrd (D) had expressed similar concern on difficulties faced by telcos in eastern states. “I think we're going to need legislation to address all public lands,” Burns said.

Ill. legislature formed special subcommittee in each chamber to consider telecom bills meant to extend, replace or supplement current Ill. Telecom Act that expires July 1. New telecom rewrite subcommittees of Senate Environment & Energy Committee and House Telecom Committee will hold separate hearings March 7 on various pieces of telecom legislation. Proposals on table range from Ameritech-backed bills (SB-134 and HB-492) that would deregulate almost all of company’s operations and services, to WorldCom- backed bills (SB-928 and HB-3243) that would require full structural separation of Ameritech’s retail and wholesale operations. Other bills being considered include SB-1055 to codify into state law federal Telecom Act’s competitive interconnection obligations on incumbents and extend rest of current Ill. Telecom Act until 2006, HB-1005 to simply extend current law 5 more years, HB-2156 to establish state universal service fund, SB-415 to largely deregulate depreciation and allow incumbent telcos to refer customers to their competitive affiliates, SB-595 to require open cable access for high-speed Internet services, SB-605 to remove competitive carriers from state service quality regulation and make it illegal under state law for incumbents to deny CLECs unbundled network elements. Legislature’s current session is scheduled to adjourn around end of May.

Wyo. legislature passed bill to offer universal service subsidies to encourage local service competition by wireless phone companies. It also voted measure to curb intrusive telemarketing. Both bills have been sent to Gov. Jim Geringer (R), with his signing expected. Wireless bill (HB-52) would allow wireless carriers to receive subsidies from state universal service fund if they offered flat-rate local calling throughout their coverage areas. Wireless local service also would have to offer 911, operator and long distance access plus toll restriction capability. PSC would determine wireless carrier eligibility and could cap amount available from $3 million fund for wireless support. Telemarketing measure would direct PSC to impose fine of up to $5,000 per call for calls to users who have put their name on national “no-call” telemarketing list maintained by Telephone Preference Service of Direct Marketing Assn., Farmingdale, N.Y. Contact would be banned effective 60 days after person put name on list. Exemptions include company calling its established customers and merchants making under 225 unsolicited calls annually. Fine also would apply to telemarketers who failed to immediately identify themselves and disclose nature of call. Measure would require telemarketers to register with state attorney gen. before soliciting Wyo. residents.

House Commerce Committee will introduce new bill “in next month or so” to replace last session’s HR-2420 that would give Bells more regulatory freedom for data transmission and expects easy passage in House but harder job in Senate, Ken Johnson, spokesman for Committee Chmn. Tauzin (R-La.), said Thurs. Johnson, who participated in panel discussion at Precursor Group conference in Washington, urged audience not to “mistake inaction with indecision” on part of Committee because it still was committed to basic HR-2420 concept. Bill probably will be same as last year’s version although it could change during legislative process, Johnson said. Tauzin looks at current version of bill as setting tone for discussion, he said.

Proposal by Multi-Assn. Group (MAG) to reform universal service and access charge regulation for rural telcos received mixed reviews by groups filing comments with FCC Mon. Organizations that developed MAG plan -- National Rural Telecom Assn., National Telephone Coop Assn., OPASTCO and USTA -- urged FCC to adopt it as it was written because it “best meets the Commission’s multiple policy goals for rural and insular areas.” However, several state regulatory bodies opposed plan, as did several groups representing consumers and business users. NARUC expressed concern Tues. when its Telecom Committee adopted resolution urging FCC to refer MAG plan to Federal-State Joint Board on Universal Service for further review (CD Feb 28 p6).

Top federal telecom policymakers warned state regulators to be cautious as federal govt. and states evaluate telecom policy 5 years after Telecom Act’s passage. In speech to NARUC Winter Committee Meeting in Washington Wed., new FCC Chmn. Powell said state and federal policymakers needed to “focus on new rules for a new network” rather than policies based on “legacy costs.” Senate Communications Subcommittee Chmn. Burns (R-Mont.) said main task facing regulators was “to square the business world with the consumer world,” securing both consumer benefits and business investment opportunities in telecom. House Commerce Committee Chmn. Tauzin (R-La.) cautioned against making politically expedient policies that distorted utility service markets by concealing true costs.

Group representing wireless providers criticized Multi-Assn. Group (MAG) plan for reforming rural telephony regulation Mon. but gave slightly more favorable review to another plan proposed by Rural Task Force (RTF). In comments to FCC Mon., Competitive Universal Service Coalition (CUSC) said much of MAG plan failed to “satisfy the access charge and universal service guiding principles of competitive neutrality, economic efficiency and transparency.” CUSC said 2 parts of MAG were consistent with those principles -- proposed increase in subscriber line charges in rural areas and plan to make universal service funding portable. However, most parts of MAG proposal raise “policy pitfalls that the Commission should avoid,” CUSC said. On other hand, it said it “generally supports the RTF recommendations which will advance the goal of competitive neutrality and will prevent excessive growth in the size of the fund.” However, CUSC said some parts of RTF plan should be rejected, such as “safety value” adjustment that would permit increases in amount of funding in some study areas. FCC took comments on 2 plans separately but on same schedule.

Wyo. Senate committees cleared for floor action House-passed bill (HB-52) that would make wireless mobile phone providers eligible to receive subsidies from state universal service fund if they provided flat-rate local calling services. Customer bills would have to be reduced by amount of subsidy carrier received. PSC would determine wireless carrier eligibility. Senate committees also sent to floor House-passed sales tax bill (HB-259) that would authorize state Revenue Dept. to enter into regional tax collection compacts that would establish central merchant registry and sales tax administrative system to allow painless collection of sales taxes by out-of-state merchants that sold to Wyo. customers via Interinnet or catalogs.