The North Carolina Utilities Commission should rule it has authority to require wireless carriers and VoIP providers to contribute to a proposed Universal Service Fund, AT&T North Carolina, the RLEC Coalition and the North Carolina Telephone Membership Corporations said. The commission has the authority to mandate such contributions and that “any fund that exempts these technologies will create a mechanism that is not technologically and competitively neutral and will impose a disproportionate burden on certain consumers, which is greater than necessary,” they said in a joint filing. The decision regarding whether certain parties can be legally required to participate in a USF that’s related to a comprehensive intrastate access revamp isn’t ripe for a decision and “must not be addressed at this time,” said the North Carolina Cable Telecom Association (NCCTA). Should the commission decide that the matter is “ripe,” NCCTA asked the commission to issue an order concluding that the agency doesn’t have the legal authority to establish a “revenue recovery” fund as commended by the Movants, the group said. Verizon agreed, saying “not only is this issue not ripe for review, but the requested ruling would violate North Carolina law, which exempts these categories of services from Commission regulation.” Even if the issue were ripe for decision, the commission doesn’t have the authority to require wireless carriers, VoIP providers and interexchange carriers to pay into a universal service fund, Verizon said. The state’s General Assembly has exempted wireless, VoIP and interexchange services from commission jurisdiction, the telco said. The commission initiated the proceeding in 2009 when Sprint Nextel petitioned to reduce intrastate access rates of ILECs, requesting that the commission reduce ILECs’ access rates to cost, or alternatively, to parity with the ILECs’ corresponding interstate access rates. Commission staff said in a filing that the issue of whether the commission has the authority to compel wireless carriers, interconnected VoIP providers, and IXCs to contribute to a state USF is ripe for adjudication. A decision by the commission on the issue would determine the parties to any further proceeding and frame and narrow the issues, the staff said.

A broad state role is critical to modernize and streamline Universal Service and Intercarrier Compensation policies, state members of the Federal-State USF Joint Board told an FCC workshop Thursday. Speakers debated proposed changes in fund size.

President Barack Obama’s broadband stimulus program was “vindicated” by new NTIA findings that up to two-thirds of America’s schools can’t get broadband at speeds they need, NTIA Administrator Lawrence Strickling. Thursday, the agency unveiled its new broadband map. The map indicated that up to 10 percent of Americans can’t get broadband. The map is based on more than 125 million searchable records in the new mapping database, with information from some 1,600 broadband companies. “All of these records can be analyzed in countless ways,” Strickling said. “But the data continues to show that a digital divide continues to exist."

The FCC took its first steps toward remaking the Universal Service Fund and the intercarrier compensation system Tuesday with a 5-0 vote in favor of a broadly worded rulemaking notice. The commission also voted to adopt a notice for a separate rulemaking that commission officials said will “streamline its data collection program” and eliminate “unneeded data collections that impose unnecessary burdens on filers.”

FCC Chairman Julius Genachowski is taking an aerial view of revamping universal service and intercarrier compensation in a new rulemaking notice. It takes up in general the necessity of subsidizing and deploying high-speed broadband but leaves contentious questions like the contribution factor for another day, commission and industry officials said. As expected, the FCC circulated a rulemaking notice late Tuesday for the commission meeting Feb. 8. The commission wants to use “market-driven, incentive based policies and increased accountability” to shift universal service money to “near term support for broadband deployment in unserved areas,” the agency said in a news release. It seeks to adopt measures to address intercarrier compensation (ICC) “arbitrage, as well as a long-term transition from current high-cost support and ICC mechanism to a single, fiscally responsible Connect America Fund,” the FCC said.

FCC Chairman Julius Genachowski is taking an aerial view of revamping universal service and intercarrier compensation in a new rulemaking notice. It takes up in general the necessity of subsidizing and deploying high-speed broadband but leaves contentious questions like the contribution factor for another day, commission and industry officials told us. As expected, the FCC circulated a rulemaking notice late Tuesday for the commission meeting Feb. 8. The commission said in a news release that it wants to use “market-driven, incentive based policies and increased accountability” to shift universal service money to “near term support for broadband deployment in unserved areas” and adopt “measures to address ICC arbitrage, as well as a long-term transition from current high-cost support and ICC mechanism to a single, fiscally responsible Connect America Fund.”

A GOP wave claimed longtime telecom heavyweight Rep. Rick Boucher, D-Va., and other Democrats in rural states, as Republicans seized control of the House Tuesday. The Republicans also won seats in the Senate, but the Democrats maintained power there. The GOP gain is seen as bad news for net neutrality supporters, while the loss of House Communications Subcommittee Chairman Boucher is a setback for rural telcos who supported his efforts to overhaul the Universal Service Fund.

Small carriers need money to build out their networks and the Corr Wireless order was wrong to not redirect surrendered funds back to other competitive eligible telecommunications carriers (CD Sept 7 p1), the Rural Telecommunications Group said in a filing at the FCC. In the order and notice of proposed rulemaking, the FCC declined to redistribute reclaimed high-cost support to other CETCs and proposed amending its Interim Cap Rule so that a state’s interim cap would be adjusted if a CETC relinquishes funds, as Verizon Wireless and Sprint Nextel did through merger commitments. In September, the commission ruled that the Universal Service Administrative Co. can’t modify the interim cap by deducting Verizon’s and Sprint’s contributions, but ruled that other eligible telecommunications carriers aren’t entitled to divvy up the left-over cash. The commission has since opened up to comments on how to handle surrendered USF funds (CD Sept 7 p6). “Existing wireless CETCs will use additional support to deploy advanced networks, cover unserved areas, and make available mobile broadband, ensuring that consumers in all regions of the nation have access to affordable services,” RTG said. “The Commission has recently acknowledged that while some areas lacking 3G coverage have some level of mobile voice service, other areas have no mobile wireless service at all.”

Wireline and wireless carriers said the FCC should back away from the controversial finding in its most recent Section 706 report that the commission couldn’t conclude broadband is being deployed to all Americans in a “reasonable and timely” way (CD July 21 p1). But Free Press said the commission was on the right track when it approved its sixth broadband deployment report during the summer and the seventh report should have the same finding. CTIA said the sixth report put too much emphasis on the speed of connections, to the detriment of wireless.

There’s no reason for the FCC to delay approval and release of an order that would allow states to require providers of nomadic VoIP service to contribute to state universal service funds, NARUC said in an FCC filing. Some providers seek a rulemaking to further delay their “obligations” to pay -- as their competitors pay -- to support state programs, NARUC said. They have raised as an issue -- “the unlikely scenario that one or more consumers -- in theory -- might actually pay into two state programs,” it noted. Currently, at least one state requires the in-state USF revenue identification to be based on billing addresses and at least one other State requires revenue identification to be based on primary service address. However, this “unlikely scenario” provides no basis for delay or a drawn out rulemaking, NARUC said, saying there’s no evidence in the record that this circumstance has actually occurred or “even likely to occur.” The group cited Sandy Reams, managing auditor for the Kansas Corporation Commission, saying Kansas is the only state currently assessing nomadic interconnected VoIP providers for state USF purposes. So no conflict between the revenue-identification methods currently exists. Reams also noted once the FCC issues an order and Nebraska and New Mexico implement the assessment on providers of nomadic interconnected VoIP service, it will be rare for a carrier to be assessed on the same revenue by two different states. The nomadic carriers have raised “an unsupported allegation as a fact” -- that a significant quantum of customers may be subject to overlapping state assessments -- as a defense to complying with what the FCC has found to be clear Congressional intent that Vonage contribute to state programs, NARUC said. Vonage (or other nomadic carriers) are the only parties to this proceeding in a position to demonstrate if the claim is true, it said. Vonage has provided no evidence a single customer in any state is in a position to be actually harmed based on the methods suggested by the Nebraska and Kansas commissions (or any other actual State commission rule or proposed rule), NARUC said. Additionally, if it actually does happen, the states will assure the affected customer “is made whole.” Two of the states involved have already specified, in the unlikely case that such a circumstance rises, they will work together to assure the consumer is not harmed. “In the unlikely event that a double assessment actually does occur,” the states can provide a credit to a carrier that is assessed twice on the same revenue,” it said. Meanwhile, states have successfully worked together on the issue for wireless providers, and that’s strong evidence that to the extent that any double billing issue arises, it will be readily resolved by the states’ collaboration, NARUC said.