FCC is expected to act by mid-Dec. on interim changes aimed at improving way carriers make contributions to Universal Service Fund (USF). Sources said Commission had planned to act by end of Nov. but decided to delay action until Comr.-Designate Jonathan Adelstein was sworn in.
Broadcasters and cable operators appear to have most to fear from tentative agenda announced by Sen. McCain (R- Ariz.), who will become Senate Commerce Committee Chmn. in next term of Congress (CD Nov 22 p1). He said committee would “assess whether broadcasters are meeting their public interest obligations.” Commerce Committee also will also examine cable rates.
Coalition for Sustainable Universal Service (CoSUS) urged FCC to raise wireless safe harbor for universal service contributions to 40% from 15% of end-user telecom revenue if it chose to keep revenue-based contribution plan. CoSUS told FCC in Nov. 19 ex parte letter that “current revenues-based Universal Service Fund contribution mechanism is broken, cannot be fixed and should be replaced with a connection- based contribution mechanism.” However, if FCC adopts interim proposal based on revenue while gathering more evidence, it then should increase wireless safe harbor, letter said. Unless safe harbor is high enough, it will become cap on wireless contributions instead of safe harbor, which is situation now, group said. Coalition members include WorldCom, Level3 and eCommerce & Telecommunications Users Group (eTUG).
FCC Spectrum Policy Task Force released recommendations Fri., including legislative “blueprint” for working with Congress. Legislative proposals cover receiver standards, possible users fees and potential authorization for 2-sided auctions. Proposals include reassessing Orbit Act to consider permitting, but not requiring, FCC to use competitive bidding to resolve mutually exclusive applications for spectrum for international satellite services.
Dynamics of the FCC are likely to change now that Jonathan Adelstein was confirmed by the Senate late Thurs. for the open Democratic seat on the Commission, sources tell us. Those who know Adelstein were reluctant to predict direction the FCC would take now that it once again had full complement of 5 members. Many expect Adelstein usually to vote with Comr. Copps, Commission’s other Democrat. But others said he would think independently and wouldn’t necessarily follow form on every issue. Even rural advocates said Adelstein, touted for his concerns of rural issues, could break from rural lobby on some issues.
EchoStar swung to $168 million 3rd-quarter loss from $3 million profit year earlier as result of cost of rights granted to Vivendi Universal, which bought 10% stake in satellite service provider earlier this year. EchoStar posted 19.6% gain in revenue to $1.22 billion, helped by addition of 320,000 net new subscribers, to bring total at quarter’s end to 7.78 million. It gained 360,000 net new subscribers year ago.
Advocates for minority and low-income groups are researching ways to challenge alleged electronic redlining by cable and telecom operators when they roll out new advanced services such as high-speed Internet in low-income and minority neighborhoods, sources said. Minority Media & Telecom Council (MMTC) will take up issue at March board meeting and will decide whether to mount FCC or court challenge, Exec. Dir. David Honig told us. Civil Rights Forum on Communications Policy (CRFCP) said it was actively seeking ways to raise $25,000-$35,000 to conduct study of electronic redlining in Boston, D.C., N.Y.
EchoStar swung to $168 million 3rd-quarter loss from $3 million profit year earlier as result of rights granted to Vivendi Universal, which bought 10% stake in satellite service provider earlier this year. EchoStar reported 19.6% gain in revenue to $1.22 billion, helped by addition of 320,000 net new subscribers to raise total at quarter’s end to 7.78 million. It gained 360,000 net new subscribers year ago.
U.S. Chamber of Commerce adopted broadband policy that urged “concerted effort between government and business to promote awareness of broadband products, applications and services and to support the development of advanced applications.” Chamber said joint activities should include establishment of collaborative pilot programs, exhibits and related research. Chamber’s policy document added that: “Incentives can be an effective tool to spur broadband deployment. Government should develop a targeted strategy to encourage investment and availability of broadband services and applications.” On regulatory policy, Chamber said: “When a marketplace is governed effectively by market dynamics, the government should seek to minimize regulatory burdens… The federal government should seek regulatory predictability and parity, and should refrain, to the maximum extent possible, from regulating broadband services so as to provide certainty in the marketplace and foster investment in broadband technology… Federal regulation should preempt state regulation of broadband rates, services and infrastructure.” On spectrum management, Chamber said federal govt. should develop “comprehensive, unified, national spectrum management strategy” that relies on market forces “to determine the most efficient and effective uses for commercial spectrum while providing for other uses of spectrum in the public interest.” On universal service, Chamber statement recommended against expanding current universal service funding to broadband services: “Government mandates to deploy broadband in underserved, high cost areas of the country should be funded either from general appropriations or by incentives to industry to provide services to these populations.”
Protection of universal service will be top priority for NTCA in next session of Congress, but bankruptcy and spectrum management also will be on its agenda. In news conference Wed., NTCA officials said Assn. would lobby for “fair and stable contribution methodology” for universal service fund (USF) and modifications of portability and identical support rules to prevent competitive carriers from claiming funds to detriment of local rural incumbents.