The FCC should implement updates to the existing high-cost rules “as soon as possible” to strike a balance between preserving and advancing universal service in areas served by rural rate-of-return regulated LECs, NTCA told aides to every commissioner except the chairman Wednesday, said an ex parte filing (http://bit.ly/1sNJzoX). “Such updates must ensure that predictable and sufficient support is available both for recovery of prior investments consistent with rules in place at the time those investments were made, and also for the additional future investments that are essential to ensure access by rural consumers to reasonably comparable services at reasonably comparable rates going forward.” The commission should proceed with “substantial caution” with respect to consideration of policies that might be based on the “purported presence of an ‘unsubsidized competitor,'” NTCA said.

AT&T has begun working with special access customers to migrate them from legacy time-division multiplexing services to IP services. The carrier said Thursday it has negotiated multiple agreements enabling TelePacific Communications to “accelerate” its migration to IP-based services like Ethernet data and IP voice. AT&T asked the FCC to approve its tariff revision in December eliminating long-term discounts for special access services. After the FCC suspended the tariff for investigation (CD Dec 10 p1), AT&T withdrew it and announced it would refile soon with “more evidence” (CD Jan 9 p1). The company hasn’t yet refiled, a spokesman said. TelePacific CEO Dick Jalkut praised AT&T’s “flexibility,” in a statement. TelePacific is a California CLEC catering to business customers. An AT&T spokesman declined to disclose the terms of the contract. “Generally speaking, wholesale customers are at different stages on their migration path to IP,” he said. “Although many customers are already moving to replace TDM services with IP-based services, we understand that others may be on a longer migration path to IP and that, as a result, may want to continue to purchase TDM services in the near term. As our discussions continue, we will be flexible to ensure we are meeting the needs of our customers throughout the course of the entire TDM-to-IP transition. There isn’t a one-size fits all approach.” Willkie Farr attorney Thomas Jones, who represents CLECs, said without appropriate FCC regulation “designed to constrain AT&T’s market power” over wires connecting to business customers, “AT&T will always have the power to dictate the terms of sale for local transmission facilities purchased by its competitors.” Regardless of which electronics are connected to AT&T’s wires, “AT&T has powerful and understandable incentives to use its market power over wireline connections to businesses to slow roll innovation and diminish competition,” Jones told us. That ultimately leaves AT&T “in charge of the transition to IP and packet-based services,” Jones said. “This is, for all of us, the inconvenient truth of telecommunications policy.”

The FCC Wireline Bureau approved average schedule formulas as proposed by the National Exchange Carrier Association, it said in an order Thursday (http://bit.ly/1oR27VI). NECA proposed to revise the formulas for average schedule interstate settlement disbursements in connection with provision of interstate access services for July 1 through June 30, 2015. Formula changes will decrease settlement rates by about 1 percent, at constant demand, the order said.

Unregistered IP Relay users are making fraudulent calls to 911 “in an attempt to trick Public Safety Answer Points” into dispatching emergency services based on false reports, Sprint told FCC officials Wednesday, an ex parte filing said (http://bit.ly/1si915L). “Due to the risk of life and safety to first responders and the public,” the commission should “provide immediate relief on this matter” by “waiving the requirement to handle calls to 911 from unregistered IP Relay users,” Sprint said.

"The transition to fiber is already well underway,” Verizon’s David Young said in a blog post Friday (http://vz.to/1si8513). About 70 percent of Verizon’s footprint will soon be “fiberized,” said the vice president-federal regulatory affairs. Only 6 percent of homes in those areas still get service over copper lines, and keeping the copper network running is very expensive, he said. “Unfortunately, there are some who for a variety of reasons are trying to put the brakes on fiber upgrades, and by extension, fiber deployment,” Young said. “They think that the old copper networks should be kept indefinitely.” No existing telco will be able to invest in fiber if it’s forced to keep the old “redundant” and “costly” copper network up too, he said. “The social benefits of a transition to fiber must outweigh the preference that a few holdouts might have for a more familiar technology,” Young said, urging policymakers to be “courageous."

The E-rate program must recognize the “unique role of libraries in the broadband social landscape,” the Urban Libraries Council told FCC officials Monday, an ex parte filing said (http://bit.ly/1i4Lf4Y). It must also recognize the “structural differences” between libraries and schools, ULC said. “Libraries play a critical role for the 90 million adult Americans not currently in the workforce. These individuals cannot access broadband at work or through schools, and many either do not have broadband at home or do not have reliable access to broadband in a home,” ULC said. More than 60 percent of libraries report they are the only free public Internet access location in their communities, it said. The FCC should “define a desired state of library access for high-speed circuits to each library building and internal wireless broadband connectivity,” ULC said, citing a goal of 4-5 Mbps downstream and 1 Mbps upstream for each Wi-Fi user during peak hours.

Nearly 200,000 customers of eligible telecom carriers receiving high-cost USF support had rates below the $14 rate floor as of Jan. 2, an FCC Wireline Bureau analysis found (http://bit.ly/1i4EkIY). Of those, about 150,000 were price cap carrier lines, and 50,000 were rate-of-return carrier lines. It’s a decrease from 220,000 lines that had rates exceeding the rate floor on July 1, the analysis showed. The change represents a monthly reduction of about $290,000 in support, the analysis said.

Vonage wants another extension in the deadline to comply with FCC rules banning fake ringing tones. “Vonage has made substantial progress” toward complying with the new rules, it said in a petition Wednesday (http://bit.ly/1i4C8B5). But “problems in the software” made it unable to meet the requirements by the April 2 deadline, it said. Another 15 days is all the VoIP provider needs, it said. It’s the third time Vonage has asked for an extension (CD March 4 p14).

ILECs have failed to report and demonstrate the consumer benefits of the lower pole attachment rates, as required by the FCC’s 2011 pole attachment order, Florida Power and Light told agency officials Monday (http://bit.ly/1i4EkIY). The order gave “explicit direction” that the cost savings from lower pole attachment rates accrue to consumers, the company said. After three years, “ILECs have never demonstrated that those specific consumer benefits have been achieved,” it said. “Based on research and general industry knowledge, the benefits very likely have not been achieved.” The company is “considering filing a petition for declaratory ruling” to determine whether ILECs have delivered the promised consumer benefits, it said.

Comptel submitted a proposed “managerial framework” to the FCC Wednesday as a way to best handle the IP transition (http://bit.ly/1i2DzA2). The proposal emphasizes the critical role of last-mile access and interconnection policies in ensuring retail business competition, drawing on recommendations in the FCC’s National Broadband Plan. The Comptel recommendations aim to guarantee just and reasonable rates, terms and conditions for TDM- and packet-based special access services; clarify rights and obligations with regard to IP interconnection; and provide a balance in copper retirement policies. The group also proposes a detailed timeline of FCC actions: By Q2 of 2014, the agency would initiate its special access data collection and reverse prior grants of forbearance from dominant carrier regulation. By Q3 it would address ILECs’ “anti-competitive, exclusionary special access discount plans” and adopt rules addressing copper retirement. By Q4 it would clarify the “duty” of ILECs to provide IP interconnection under Section 251 of the Communications Act. By Q2 of 2015, the agency would undertake comprehensive special access changes, and address access to packet-based last-mile facilities. The Broadband Coalition released a statement supporting Comptel’s plan. NTCA Senior Vice President-Policy Michael Romano also said his association welcomed Comptel’s focus on ensuring the technological evolution doesn’t become “an excuse to cast aside” important consumer protection rules. “While the members of our organizations may not agree on every substantive policy issue raised or how certain obligations should be interpreted and implemented, we certainly agree that a well-defined regulatory backdrop that provides clear rules of the road on things like interconnection of networks is essential to the functioning of communications markets and the advancement of enduring public policy values,” he said in a statement.