Lobbyists Blitz FCC With Views on Wireline Broadband Order
As FCC staff and commissioners continued negotiating over terms of the proposed wireline broadband order Thurs., lobbyists continued blitzing commissioners’ offices to make sure their views were reflected in the talks. At our deadline it still wasn’t known if the agency would get enough agreement on contested issues to place the broadband item on today’s (Fri.’s) agenda. The FCC had delayed its Thurs. meeting until today, reportedly to give it more time to reach consensus. The item would generally lessen regulation of wireline-provided broadband service by reclassifying it as an information service. However, judging from the continual discussions at the agency, there appeared to be many nuances within that general description of the proposed order.
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Much of the negotiating reportedly is centered on Comr. Jonathan Adelstein, who’s concerned the order might hurt the universal service program and thus rural carriers’ revenue, an issue targeted by an ex parte filing by the Rural Alliance. The Alliance filing, outlining a teleconference Tues. with an Adelstein advisor, said rural telephone companies are concerned that the order, in giving DSL providers regulatory parity with cable modem providers, would result in a drop in universal service payments. DSL providers now contribute to the Universal Service Fund (USF) while cable modem providers don’t. The fear is parity might mean neither would make contributions, the Alliance said. Instability in the USF could stymie the development of broadband services in rural areas, the Alliance said.
The Alliance said it “understands” the Commission is considering maintaining universal service assessments on DSL and other wireline broadband providers “for an interim period” while the Commission considers revising the universal service contributions system. The Alliance told Adelstein’s staff that while it “appreciates this proposal” it’s concerned it might be challenged legally “and result in instability in the Universal Service Fund.” The Alliance said the agency has to balance its desire to move quickly on parity with an “equally significant need” to make sure the rural industry can continue deploying broadband service.
Groups representing rural carriers also have pointed out that some small companies might not want the same degree of DSL deregulation as larger telephone companies. They've been pushing for language allowing rural carriers to continue receiving universal service support for their DSL service and to participate in National Exchange Carrier Assn. (NECA) tariffs and pools, an issue that reportedly is of particular concern to Comr. Michael Copps. GVNW Consulting, which represents many rural carriers, concluded in a filing Thurs. that “the Commission has the ability under its ancillary Title I authority to continue to permit small carriers to receive the current jurisdictional cost recovery for the provision of DSL services.” GVNW said “absent the continuation of these cost recovery rules and pooling options, rural carriers will be unable to economically provision DSL services to their customers.” NECA met with an Adelstein aide on Tues. to discuss “an option for rate of return carriers to continue providing broadband services, including xDSL transmission, under tariff if a carrier so chooses.”
The National Telecom Co-op Assn. submitted an ex parte paper Tues. outlining its position on these issues: (1) Rural ILECs should have the option of offering broadband transmission services through NECA tariffs and pools. (2) “If a rural ILEC chooses to offer its broadband transmission services though NECA tariffs, the costs associated with providing these services are regulated costs under the Commission’s rules.” (3) All broadband service providers, be they cable, wireline, wireless, satellite or something else, should contribute to the USF based on revenues derived from these services. (4) All VoIP providers should contribute.
Meanwhile, EarthLink representatives, meeting Mon. with aides to Adelstein and Copps, “stressed the importance of a reasonable transition period of 3 years, should the FCC decide to reclassify BOC wholesale DSL services as private carriage,” according to an ex parte filing outlining the meetings. “Such a period of time is consistent with the 3-year line sharing transition period the FCC provided in the UNE Triennial proceeding,” EarthLink said. The company said 3 years should be enough to make sure the DSL arrangements it has with Bell companies continue without end user interruptions.