State regulators are weighing open access for both ISPs and BPL providers as they grapple with the regulatory issues for the broadband over power line (BPL) industry. That became evident at a NARUC BPL task force meeting Sun. in Washington, where state regulators sought views from the FCC, the Federal Energy Regulatory Commission (FERC), industry officials and others on how they should balance spurring BPL deployment against handling issues specific to legacy electric infrastructure.

State regulators are weighing open access for both ISPs and BPL providers as they grapple with the regulatory issues for the broadband over power line (BPL) industry. That became evident at a NARUC BPL task force meeting Sun. in Washington, where state regulators sought views from the FCC, the Federal Energy Regulatory Commission (FERC), industry officials and others on how they should balance spurring BPL deployment against handling issues specific to legacy electric infrastructure.

Ten state commissions have 17 seats up for election on Nov. 2. Most campaigns have been relatively low key -- but not Mont., where a telecom carrier has involved itself in a heated PSC race. The contests in Mont., N.M. and La. are wide open with no incumbents in the running.

Telecom companies and other parties offered a wish list of changes to the rural high-cost universal service program, in comments to the Federal-State Joint Board on Universal Service that were due late Fri. SBC urged modification of the definition of “rural” carriers to include all carriers serving rural and high cost areas. It also recommended limiting the universal service support available to competitive ETCs to the lesser of their own costs or the costs of the incumbent carrier. Western Wireless, one of those rural competitors, recommended adopting a new unified rural high-cost support mechanism that would be based on forward-looking, rather than embedded, costs. Western Wireless said the unified system would fund competitive and incumbent carriers alike. “Maintaining different funding systems for different sizes or types of carriers violates competitive and technological neutrality, undermines competition and harms consumers,” Western Wireless said. NTCA, USTA, OPASTCO and AllTel, on the other hand, urged retaining the system of providing high-cost support to rural carriers based on embedded costs. NTCA included a white paper to back up its view that “a shift to a forward-looking standard is unlikely to achieve the efficiency that those who support that model portray it can.” Said OPASTCO: “Alteration of the mechanism for rural ILECs is neither necessary nor desirable. Where reform is needed is in the portability rules for competitive ETCs.” These rules are causing limited universal service resources to be wasted” and are causing strain on the high-cost universal service program. USTA said “the current system of providing high-cost support to rural carriers is not necessarily broken” and the FCC instead should concentrate on related issues of: “Problems with ETC designations, contributions to the Universal Service Fund and intercarrier compensation, all of which should be addressed holistically, rather than separately as is currently the case.” AT&T said the FCC shouldn’t move on the issue now but focus first on intercarrier compensation. The National Assn. of State Utility Consumer Advocates recommended a forward-looking economic cost test for rural carriers with 50,000 lines or more. Sprint said the FCC should continue using actual costs until an accurate and appropriate forward-looking mechanism is created.

BOSTON -- State regulators had a mixed reaction to the FCC Wireline Bureau proposal on VoIP jurisdiction expected to be sent to the 8th floor this week (see separate story, this issue), with some questioning whether the proposal would get enough votes from the Commission in light of the upcoming presidential election. Though disagreeing on many issues, most state commissioners at the VON Conference agreed states should play a significant role at least on consumer protection.

LAS VEGAS -- Whether VoIP’s success is due to “regulatory arbitrage” or “superior technology” remains a key question, according to state PUC commissioners speaking Tues. at the USTA convention here. Commissioners said improper regulation could increase regulatory arbitrage. Meanwhile, other speakers predicted state retail rate regulation would largely fade out by decade’s end.

Las Vegas -- If Congress goes through with the expected rewrite of the Telecom Act, the FCC’s top priority should be for a clear definition and regulatory framework for advanced services, said 3 FCC commissioners speaking here Wed. “The biggest challenge at the FCC is dealing with new technologies that are absent from the Telecom Act, trying to create a regulatory environment that assures investment certainty,” FCC Comr. Abernathy told the audience at USTA’s conference. She and Comrs. Martin and Adelstein said it was difficult dealing with the current law’s separate regulatory regimes based on types of companies and technologies, with none of the choices ideally suited to converging broadband technology. New broadband rules would be “nirvana,” Abernathy told reporters after the speeches.

Level 3 CEO James Crowe called on regulators to rewrite policies and regulatory frameworks in response to “fundamental” changes in the information technology industry. Speaking Wed. at a CEO luncheon sponsored by Progress & Freedom Foundation in Washington, he said: “Even the words we use -- ‘Telecom Act’ -- are incorrect… It’s time to rewrite the Communications Act. Telephone services is only a part of much broader networking capabilities.”

It might make sense to have a separate universal service regime to encourage the buildout of broadband, but there would be litigation risk without congressional action, Mathew Brill, FCC Comr. Abernathy’s aide, said Sun. Speaking at the USTA conference, Brill said the Telecom Act’s Sec. 254 doesn’t target broadband services for universal service support. Sec. 706 of the Telecom Act encourages advanced services such as broadband, but if the FCC initiated a universal service regime under that section, the courts might view the action as setting up a “parallel universal service regime,” he said. A court could say the authority is in Sec. 254, so a parallel regime under Sec. 706 would create risk and uncertainty, Brill said. “We need to think not about universal service but universal access to networks,” said MCI Vp Richard Whitt. “We need to build out broadband platforms,” he said. “We need a separate fund to support broadband providers.” Trying to give Skye a universal service bill probably is impossible, so rather than concentrate on universal service, “the real issue is building actual networks,” he said. The industry needs to be more creative about how to support broadband, a task that perhaps could be dealt with in the Telecom Act rewrite, he said. Ken Pfister, vp of rural telco Great Plains Communications, said he agreed: “USF in an IP world needs to look entirely different.” Mont. PSC Chmn. Bob Rowe said regulators “have to figure out how to support networks” and not concentrate just on services, because without a network there can be no services. The problem is that the Telecom Act talks about supporting services not networks, said Brill. “It’s almost backward.” However, “any major shift in universal service will probably need Congress” to act, Brill said. Meanwhile, Mont. PSC Chmn. Bob Rowe asked whether providing universal service support to wireless companies based on their own costs -- rather than on the costs of the incumbent rural telco -- might be worth considering. Of all the carriers receiving some sort of universal service support, “wireless is the only one with no cost model, he said. Western Wireless Vp Gene DeJordy said it would be “misguided,” adding that depending on how you measure it, wireless carriers might have higher costs. At the very least, it would “be difficult from a practical standpoint” because it’s hard to measure those costs, Brill said. Pfister of Great Plains said a separate universal service fund for wireless makes sense. It would be better than “being at each others’ throats,” he said. Wireless carriers often are cited as responsible for the growth in the universal service fund, but payments to all segments have increased over the past 3 years, DeJordy said. The overall fund has increased $1.8 billion, with rural ILECs responsible for $650 million of the increase, the Schools & Libraries Fund growing by $780 million, Lifeline growing $180 million and competitive carriers such as rural wireless companies getting $225 million more, he said. Nonetheless, Brill said, a recent study showed “astronomical” growth in competitive carriers: “The amount of support appears to be doubling every 6 months or so.”

Las Vegas -- Western Wireless CEO John Stanton came before an audience filled with hundreds employed by rural ILECs -- his company’s traditional enemies -- to tell them he thought wireless technology can serve rural areas better than wireline carriers and to urge them to work with him to get rid of unproductive regulation. “We're all a part of the same industry,” he said at the opening Tues. session of USTA’s Telecom 04 conference, adding that “wireless communications can provide a more economic way to meet telecommunications needs in rural areas.” Stanton also told them his company provided service in Pine Ridge, S.D., because it wasn’t served well by its rural ILEC. “It’s essential to have wireless for rural communities to get on the information superhighway,” he told the ILECs: “Businesses are making critical decisions on whether to locate in rural areas. Without wireless, businesses won’t come and jobs won’t come.” Western Wireless has aggressively sought eligible telecom carrier (ETC) status in order to get universal service support in rural areas over the past few years, presenting the first competition for some rural telcos.