The GOP overcame Democratic opposition to FCC process reform proposals, approving two bills Wednesday in the House Communications Subcommittee. On a party line vote, the subcommittee voted 14-9 on HR-3309, which requires rulemaking shot clocks, cost-benefit analyses and a variety of other process changes. However, Democrats supported HR-3310, a bill that would consolidate many FCC reports and eliminate others. The subcommittee approved that bill by voice vote but said more work needs to be done before the next markup in the full committee.
Federal Universal Service Fund
The FCC's Universal Service Fund (USF) was created by the Telecommunications Act of 1996 to fund programs designed to provide universal telecommunications access to all U.S. citizens. All telecommunications providers are required to contribute a percentage of their end-user revenues to the Fund, which the FCC allocates for four core programs: 1. Connect America Fund, which subsidizes telecom providers for the increased costs of offering services to customers in rural and remote areas 2. Lifeline, which directly subsidizes low-income households to help pay for the cost of phone and internet service 3. Rural Health Care, which subsidizes health care providers to offer broadband telehealth services that can connect rural patients and providers with specialists located farther away 4. E-Rate, which subsidizes rural and low-income schools and libraries for internet and telecommunications costs The Universal Service Administrative Company (USAC) administers the USF on behalf of the FCC, but requires Congressional approval for its actions. Many states also operate their own universal service funds, which operate independently from the federal program.
ST. LOUIS -- Instead of taking the FCC to court, state regulators and consumer advocates should focus on working together with the FCC on implementing the Universal Service Fund revamp, FCC Commissioner Michael Copps said at NARUC’s annual meeting Tuesday. The FCC, which took many of the Federal/State USF Joint Board’s recommendations as it works to finalize the order, seeks to strengthen the federal/state partnership going forward, he said. Meanwhile, the outgoing commissioner said he plans to continue to advocate for media reform even after leaving the FCC.
ST. LOUIS -- While some panelists at NARUC’s annual meeting see a continuing state role in a broadband world, others urged regulators to be mindful of market changes that have resulted in loss of revenue. And while some said they can live with the FCC’s Universal Service Fund order, others find it unacceptable.
The telecom world largely responded cautiously as the FCC on Thursday adopted its Universal Service Fund and intercarrier compensation regime changes. But telecom officials and observers predicted lawsuits would begin pouring in after the 400-plus page order is published and digested. Meanwhile, the order itself hadn’t been finished, an FCC official told us. Staff were continuing to incorporate edits agreed upon by the commissioners late in the process but before the vote, and the order won’t be ready for release until at least the end of next week, the official said. Less-substantive changes are also still being made.
FCC Chairman Julius Genachowski proposed a new plan to support small business cybersecurity efforts, during a speech at the U.S. Chamber of Commerce Monday. The Small Business Cyber Planner is a free online tool to help U.S. small businesses increase their cybersecurity awareness and protections, and will be available on the FCC website in “a few weeks,” Genachowski said. The Department of Homeland Security endorsed the plan and encouraged small business owners to implement strong cybersecurity policies.
Telecom and consumer and states’ rights advocates were making final efforts to blunt the impact of the pending Universal Service Fund and intercarrier compensation system reforms on their interests. The FCC extended the open lobbying period to the close of business Friday. More than one critic accused FCC Chairman Julius Genachowski of being unnecessarily opaque with his intentions. “I think a lot of things are still in flux,” Free Press Political Adviser Joel Kelsey said Thursday. “The details are moving targets.” The proposed USF order is on the agenda for Thursday’s meeting.
Commissioner Mignon Clyburn is pressing other FCC members to look more closely at the appropriate size of a proposed Mobility Fund as the agency completes its Universal Service Fund proceeding, her wireless aide, Louis Peraertz, told a Federal Communications Bar Association lunch Thursday. Elsewhere, aides to the four commissioners mostly talked about spectrum, with several conceding that spectrum sharing will be the trend of the future.
FCC Chairman Julius Genachowski offered reassurance Thursday, in a speech at FCC headquarters as he prepared to circulate the FCC’s version of Universal Service Fund and intercarrier comp overhaul, most likely late Thursday evening. Genachowski’s speech was short on details on how his proposal differs from plans already before the commission, particularly the ABC plan. Instead, he reassured consumers they have nothing to fear and that the proposed reforms will, in the long run, drive down the size of their monthly phone bills.
The FCC confirmed that Chairman Julius Genachowski will circulate a proposed order that he hopes will lead to reform the universal service and intercarrier compensation regimes. The FCC called a briefing with reporters where agency officials spoke on the condition they not be named and said Genachowski will deliver a speech Thursday laying out some of his proposals. FCC officials declined to discuss specifics in Tuesday’s briefing, set for Thursday at 10:30 a.m. at FCC headquarters, instead reiterating their talking points about why reform was necessary.
Rural telcos and state regulators worry the pending universal service and intercarrier compensation regime reforms will result in consolidation in their sector. Earlier this week, ex-FCC commissioner Harold Furchtgott-Roth accused the agency of pushing rural telcos toward consolidation in the Universal Service Fund rulemaking notice (CD Sept 26 p13).