The “fundamental problem” with E-rate is “the perennial under-funding of networks within schools due to the existing system of prioritizing services,” Cisco told FCC officials Tuesday, an ex parte filing said (http://bit.ly/1fkKGpT). “Broadband connections to the school are only useful to the extent that students and teachers can access them in the classroom, particularly as educators move towards a one-to-one ratio of students to connected devices,” Cisco said. The networking provider suggested a “whole network” approach to E-rate funding, which would eliminate the distinction between priority one and priority two services. That approach should also recognize that “internal networks require basic maintenance” to perform properly, and schools and libraries should have the funding to purchase such contracts.

The American Cable Association doesn’t oppose collection of data to examine special access markets, but certain aspects of the proposed data collection “are excessive for smaller cable operators” and violate the Paperwork Reduction Act, ACA told an aide to FCC Chairman Tom Wheeler Thursday, an ex parte filing said (http://bit.ly/MBf8Br). ACA proposed that the collection only require those operators to provide data they collect in the normal course of business. On Phase II of the Connect America Fund, ACA said the program shouldn’t provide support to price-cap LECs in areas where unsupported competitive providers have built qualifying broadband service. Competitive providers should also “be given the opportunity to receive support in eligible areas in states where price cap LECs refuse support since competitive providers often can deploy broadband service more efficiently and effectively than the price cap LECs,” ACA said.

CLECs opposed a CenturyLink petition for forbearance of dominant carrier and Computer Inquiry tariffing requirements on enterprise broadband services. In comments filed Thursday in WC docket 14-9, the competitive providers said CenturyLink’s petition only confirmed the importance of wholesale last-mile access policies to provide choice for business consumers. The telco had sought forbearance from dominant carrier regulation of packet-based special access services offered by legacy CenturyTel and legacy Embarq. It’s the second time in a year CenturyLink has asked for such forbearance, and the commission “must put a stop to this wasteful gamesmanship,” said tw telecom, Level 3, Integra, EarthLink and Cbeyond (http://bit.ly/1cmV0fO). The competitive providers urged the commission to use the “traditional market power framework” to evaluate CenturyLink’s petition. Under that framework, or any other “reasonable standard,” the ILEC has failed to demonstrate sufficient competition in the relevant markets to justify forbearance, they said. The correct policy response to CenturyLink’s petition is to reform last-mile access policies for all providers, Comptel said (http://bit.ly/1cmXfjp). Commission forbearance grants have generally put “next generation competition at risk,” the association of CLECs said. Reforming last-mile access will promote investment, and CenturyLink’s claim that no advantages come from “incumbency in fiber deployment” is false, Comptel said. Sprint also opposed the petition. “Nothing has changed since the last time CenturyLink requested forbearance,” the carrier said (http://bit.ly/1cmXQSb). “It retains market power in the provision of enterprise broadband services because of its control of critical last-mile facilities in its service areas, and it has failed to demonstrate that its requested relief is justified.” CenturyLink had asked to be treated like other major providers of enterprise broadband service, which it said are uniformly regulated as nondominant. The widely varying regulation that applies to CenturyLink services undermines its ability to compete, the ILEC said in its December petition: “About the worst mistake a regulatory agency can make is to treat similarly situated competitors unequally” (http://bit.ly/1cnb01r).

Rural telco Nex-Tech met with FCC Commissioners Ajit Pai and Mike O'Rielly and an aide to Chairman Tom Wheeler to discuss the need for stand-alone broadband support (http://bit.ly/1cn2ks0). “Providing support for loops that are used to provide standalone broadband services would promote and accelerate the ongoing IP evolution,” it said Wednesday. Nex-Tech also discussed “continuing concerns” with regression analysis-based caps on high-cost loop support, and urged the commissioners “to ensure that greater visibility and predictability can be obtained as soon as possible.”

Vonage has been seeking to negotiate direct IP interconnection agreements with ILECs, but “those agreements have been hampered by AT&T’s misinterpretation of the Commission’s VoIP access charge rules,” Vonage told FCC Wireline Bureau officials Feb. 11, said an ex parte filing posted online Tuesday (http://bit.ly/1cn0YNP). “Vonage seeks IP interconnection agreements because the exchange of traffic in IP delivers substantial public interest benefits including cost reduction, improved service quality, and the ability to deliver advanced services such as HD voice.” But “at least one incumbent LEC is unwilling to enter into a direct IP interconnection arrangement unless that arrangement imports the asymmetrical compensation structure that AT&T has argued, incorrectly, was adopted by the Commission” in its 2011 USF/intercarrier compensation order, Vonage said. It said it generally prefers to seek bill and keep arrangements when signing direct interconnection agreements with other IP providers. Vonage urged the bureau to take “swift action to enforce the symmetrical compensation provisions” adopted by the FCC, lest an “asymmetrical approach to VoIP intercarrier compensation” give ILECs “perverse incentives to perpetuate legacy TDM technology."

More than 25 percent of Windstream’s Lifeline customers have not been accepted by the National Lifeline Accountability Database, the telco told FCC Wireline Bureau officials Wednesday, an ex parte filing said (http://bit.ly/1cmZDXq). That’s about 15,000 customers, most of whom are rejected because of problems with addresses, the carrier said. Frequently, however, the error messages “do not guide Windstream to the actual reason for the rejection,” and the addresses often come up valid when put into the U.S. Postal Service database, it said. Windstream asked the bureau to delay the deadline for migration of Lifeline customers into the national database “so companies have time to begin address reconciliation.” Windstream also asked the bureau to work with Universal Service Administrative Co. “to develop more specific and accurate error messages” for the national database, and to delay Lifeline audits until after migration is complete.

The FCC’s proposed reduction in USF rate-of-return support “would negatively impact Big Bend’s operations at a time when the impacts of USF-[intercarrier compensation] reforms are still being implemented and the full impacts are not known,” the Texas telco told officials from several commissioners’ offices and the Wireline Bureau last week, an ex parte filing said (http://bit.ly/1ghtkKO). The bureau’s May staff report recommended reducing the rate of return to between 8.06 and 8.72 percent; that would be “a threat to financial stability” and would harm Big Bend’s ability to get new loans to build out broadband, the telco said. “Service and customers in rural, remote, and high-cost areas like Big Bend’s service area will suffer due to lack of ability to maintain and invest in new network.”

Newest FCC Commissioner Mike O'Rielly took to the official agency blog Wednesday to share his thoughts on E-rate changes (http://fcc.us/1nwynre). There’s widespread agreement that the program is “due for an overhaul,” and O'Rielly supports that effort, he said, with six provisos: E-rate “must not increase costs on consumers” by increasing USF contributions; it “must be offset by reductions elsewhere” within the fund. E-rate “must be refocused on broadband access.” E-rate matching requirements must be consistent with other federal programs; the current local match of as little as 10 percent is “much lower” than other federal programs and “can distort decision making,” O'Rielly said. E-rate funding must leverage private sector networks, “not overbuild them.” E-rate funding “must not over supply,” but rather give schools flexibility to “choose the speeds that best meet their needs.” Finally, O'Rielly said, E-rate program administration must be revised. “By streamlining processes, requiring productive oversight, and providing significant outreach, we can make school participation in E-Rate easier, stretch program dollars, and ultimately benefit more students.”

"Consumers should cheer the recent appeals court decision voiding the FCC’s net neutrality rules,” said a report published by the Heritage Foundation Wednesday (http://herit.ag/1nwzasd). “Despite the Chicken Little claims of its supporters, broadband consumers were hurt, not helped by the agency’s restrictions,” said the report, written by senior research fellow James Gattuso. “Rather than guarding against market abuses by dominant firms, the rules have been invoked in attempts to hinder innovation, impede competition, and block consumer price protections.” The report urged congressional lawmakers and FCC officials to “not restore these unnecessary and harmful regulations."

Comments are due March 13 on the proposed transfer of AT&T’s Connecticut wireline assets to Frontier, the FCC Wireline Bureau said in a public notice Tuesday (http://bit.ly/1aVKuh9). The relevant licenses and authorizations are held by AT&T’s wholly owned subsidiaries, the Southern New England Telephone Co. (SNET) and SNET America. The operations there include about 900,000 access line customers, 415,000 broadband customers and 180,000 video customers. Reply comments or oppositions are due March 28 in docket 14-22.