At least 3,000 consumer letters were filed in the FCC’s universal service docket (96-45) Wed. urging the FCC to reject a proposal to move to a flat fee for universal service fund (USF) contributions by carriers. The letters, all the same, appear to be written by a lobbyist group. At our deadline, its identity couldn’t be confirmed. However, one of the letters indicated a link to a website -- http//keepusffair.org -- sponsored by a consumer coalition that includes the Telecom Research & Action Center (TRAC). Signed by individuals from throughout the country, the letters told the FCC: “I do not want to pay more for my telephone service! I urge you to reject a flat fee proposal that would change how contributions are made to the Universal Service Fund… Under the flat fee you are considering, people who make few long distance calls would pay the same as people or businesses that make many calls… This is unfair.” The letter also makes reference to wireless service: “I use my wireless phone for safety, security and convenience. I don’t want to lose those benefits so big businesses can pay less than their fair share.”

Senate Commerce Committee Chmn. Stevens (R-Alaska) had strong words for AT&T, which he said was skirting its universal service fund (USF) obligations by not applying the fee to its prepaid calling cards. AT&T has argued that since the cards also feature an ad, it’s an information service rather than a long-distance service. Stevens’ anger was also directed at AT&T’s efforts to use these calling cards to direct complaints to members of Congress, who he said were inundated with calls from constituents concerned about the issue.

Chmn. Powell announced Fri. he will leave the FCC in March. With key issues pending for all communications sectors, sources agreed the next chmn. is likely to maintain Powell’s policies in the broadest sense, including an emphasis on competition and on promoting new technologies.

Telecom Act revision should be legislation of few words and fewer regulations, BellSouth Chmn. Duane Ackerman told an American Enterprise Institute/Brookings Institution forum Tues. If Congress concludes competition between multiple facilities-based networks works better than traditional regulation -- which Ackerman believes it will -- telecom reform “could be dealt with in a very short bill in a matter of months, not years. This is not complicated.” Ackerman emphasized that telecom reform must be simple, to avoid lengthy litigation like that over the Telecom Act of 1996.

The Senate sent telecom legislation to President Bush on Wed. evening in a literal 11th-hour vote. By approving HR-5419, the Senate approved 3 legislative measures and ended weeks of political infighting about everything from Congressional Budget Office scoring to appropriators’ authority and boxing regulation. Sources said the White House would sign the act, which includes the spectrum relocation trust fund, E-911 funding and a temporary fix to accounting problems in the E-rate program. The junk fax bill, HR-4600, was the only legislation that had a reasonable chance to pass and didn’t. “The legislation brings needed changes that will promote homeland security and increase wireless broadband opportunities,” FCC Chmn. Powell said.

Several important communications-related items could pass Congress this week as it returns for a brief lame- duck session, industry and congressional sources said. The loudest buzz is on the universal service fund (USF) and the controversy over the FCC’s change in accounting mechanisms that could slow some E-rate payments and possibly lead to a rise in contributions, and several sources expected some efforts to push a legislative solution.

More groups are urging Congress to pass legislation that would exempt the universal service fund (USF) and E- rate programs from Anti-Deficiency Act (ADA) account requirements. Several groups joined NTCA -- which sent letters Mon. -- in sending letters to the Hill urging a legislative fix in the lame-duck session scheduled to start Nov. 16. By applying the ADA rules to USF, the FCC forced the Universal Service Administrative Company (USAC) to withhold millions in E-rate funds until cash flow issues can be corrected. These groups also said the accounting change could affect USF programs and force USAC to raise USF contribution levels. NARUC told Senate Commerce Committee Chmn. McCain (R-Ariz.) that USAC already has been forced to hold $460 million in E-rate funding. “It is our strong view that applying the accounting standards contained in these acts does nothing to stabilize the fund or promote the goals of universal service, and in fact jeopardizes the stability of the fund,” NARUC said. These groups urged action before the congressional session’s end. NARUC also said USF should also be exempted from the Miscellaneous Receipts Act, even though the Office of Management & Budget ruled that the Act’s not applicable to USF. NARUC noted that the Federal Highway Fund and Fish & Wildlife Service were also exempt from ADA. Joining NTCA and NARUC were OPASTCO, the Independent Telephone & Telecom Alliance, the Rural Telecom Group and the Western Telecom Alliance.

USTA is urging Senate Appropriations Chmn. Stevens (R-Alaska) and Sen. Inouye (D-Hawaii) to include language in omnibus appropriations legislation that would exempt the Universal Service Administrative Corp. (USAC) from the Anti-Deficiency Act. Stevens and Inouye will likely be next session’s Senate Commerce Committee chmn. and ranking Democrat. Congress will return for a lame-duck session next week, where completion of the remaining appropriations bill will be a top priority. The anti- deficiency act (ADA) provision will cause USAC to “radically change the timing” for distributing USF funds, USTA said. In a letter sent Mon., USTA Pres. Walter McCormick said the ADA requires USAC to have funds on hand before committing them to particular programs. The FCC’s ruling has already caused USAC to delay new E-rate funding commitments, McCormick said. To make future commitments, USAC may need to raise USF contributions to 12.5% of interstate revenue from 8.9%, he said. “Of deep concern to USTA is the fact it is possible that a similar interpretation of the applicable rules could be applied to the high cost, low income and Link Up programs. If that occurs, USAC would likely have to suspend the High Cost program for three to six months to collect adequate funds going forward. In addition, the first quarter Contribution Factor could climb to 25% of interstate revenues, significantly impacting our members and customer bills,” McCormick said: “Unless Congress acts quickly, this situation could further undermine the stability of the nation’s universal service fund. Meanwhile, OPASTCO sent an alert to its members urging them to ask congressmen and senators that serve their communities to support legislation to exempt the universal service program from the ADA. OPASTCO is part of a coalition of groups trying to resolve the issue. Another coalition member, the Alliance for Public Technology (APT), circulated a letter to other public interest groups, asking them to sign it. The letter asks for swift action by the House and Senate Commerce Committees to solve the problem. “This problem will have widespread consequences if it is not addressed immediately,” APT told other groups in urging them to sign: “We must not allow unintended administrative flaws to get in the way of a program as vital to our country as E-rate.”

The Universal Service Administrative Co.’s (USAC’s) outside board members are trying to get a legislative fix to solve an accounting problem (CD Oct 6 p1) that caused the $6.5 billion universal service program to lose money and jeopardized not only to the E-rate program but also high-cost rural telephony support. Although USAC can’t lobby Congress, its board has been meeting with state regulators, telecom industry associations, education groups and others to seek help in gaining legislation during the lame-duck session of Congress beginning Nov. 15. “The USAC board is reaching out to constituents, talking to people about a solution, trying to do as much as we can,” said USAC Chmn. Frank Gumper, a Verizon consultant: “We've got to do something to get the situation under control, to get the program back to normal.”

The Internet Innovation Alliance (IIA) officially kicked off Mon., as its leaders said “promoting VoIP services” and “educating people” were top goals of the new group. Unlike other VoIP organizations, such as the VON Coalition, the IIA will focus primarily on regulatory and economic rather than social policy VoIP issues, its leaders said.