Start of FCC USF Overhaul Likely Pushed to Next Year
The FCC no longer appears likely to take on Universal Service Fund and intercarrier compensation proposals at its Dec. 15 meeting, FCC officials said last week. With USF likely off the agenda until the new year, it’s unclear what will be on the agenda at the last open meeting of 2010.
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A final data roaming order is one possibility, though it’s unclear that will be ready in time to circulate Nov. 24, which is three weeks before the meeting, agency officials said. (See separate story in this issue.) Another possibility is that the FCC could act on the Comcast-NBC Universal deal, sending a pro-business signal, a commission official said. But mergers are usually handled on circulation, with a vote outside the open meeting. Another possibility for the December meeting would be an order addressing so-called traffic pumping, though the FCC is expected to address that as part of broader USF overhaul.
There’s still talk inside and outside the commission about a December vote on a rulemaking for consumer electronics devices to be able to connect to any pay-TV provider (CD Oct 18 p3). A vote next month is still possible for such an item -- generally backed by CE companies and opposed by pay-TV -- though FCC Chairman Julius Genachowski hasn’t made clear when he wants action, FCC and industry officials said.
Since the November meeting is so late in the month, Nov. 30, orders for December will have to circulate the week before the November meeting. “Until we circulate the December agenda, rumors about timing are pure speculation,” FCC spokeswoman Jen Howard said Friday.
The November meeting is scheduled to focus on rule changes designed to lift technical barriers so spectrum licensed to broadcasters can be used more easily for fixed or mobile broadband, as well as a proposed rulemaking seeking comment on additional use of experimental licensing and a notice of inquiry on ways to accelerate “opportunistic use” of spectrum.
Genachowski started the media blitz for the November meeting early, conducting interviews with Communications Daily and other news organizations more than a month before the meeting (CD Oct 21 p1).
Free Press would be “deeply disappointed” if USF overhaul is not on the December agenda, said Research Director Derek Turner. “Universal Service reform is a complex policy problem that most certainly cannot be solved by an agency worried primarily about politics,” he said. “The FCC appears to be on track to miss nearly half of the National Broadband Plan implementation milestones it set for itself to achieve by the end of the year. The commission has moved only the most non-controversial items, while kicking the can down the road on key pieces of [President Barack] Obama’s technology agenda."
"It’s no secret USF and intercarrier compensation reform are among the hardest issues facing the FCC,” said John Nakahata of Wiltshire Grannis, a former FCC chief of staff. “The fact that it takes a little longer just to get the proceedings started is really no surprise.” Other industry sources said Genachowski’s media outreach strategy makes sense, especially in light of changes in the new Congress, with Republicans taking over the House.
"Given significant Republican gains in the midterms, I think it’s especially important for Chairman Genachowski to lay a solid foundation for policy proposals before their official rollout,” said Jeff Silva, analyst at Medley Global Advisors. “An aggressive approach to selling policy initiatives can help build momentum for them, while enabling the chairman and his staff to ascertain where support is lacking at an early stage so that adjustments can be made to strategy and/or policy itself. While the substance of given policy proposals will continue to take precedence, the manner in which the chairman executes his agenda will likely carry greater weight in the new political environment.” Silva predicted that “Genachowski’s political skills will be tested like no time before when the new Congress gets down to business” net year.
"The telecom policy space is pretty noisy and controversial, so it makes a lot of sense for the chairman to help frame the debate by clustering related items,” said Paul Gallant, analyst at MF Global. Gallant said former Chairman Reed Hundt “was media savvy about messaging on big-ticket decisions, but this approach by Chairman Genachowski in some ways is more comprehensive.”