VoIP providers are forming the Global IP Alliance to demonstrate to state, national and international regulators that the industry is capable of self-governance. The alliance, expected to be formally announced in the next several weeks, will be led by Pulver.com and consist of ILECs, CLECs, IXCs and pure VoIP providers from around the world. “We want to make sure we represent all points of view globally,” said Pulver.com Gen. Counsel Jonathan Askin, who will be exec. dir. of the alliance. He said the group has attracted “a lot of” U.S. VoIP providers and “a couple of” European ones, but he said “we need to get more Asian” companies. The initial members will include SBC, Global Crossing, Skype, KMC, Volo and Pulver.com.

Rural carriers urged the FCC to deny AT&T’s prepaid calling card petition,(CD Aug. 4 p4) saying their customers would be affected because the petition would decrease access charge revenue and the Universal Service Fund (USF). The letter to FCC Chmn. Powell was sent Mon. by the Independent Telephone & Telecom Alliance, NTCA, OPASTCO and Western Telecom Alliance. AT&T is seeking a ruling that its card is an information service, so its revenue shouldn’t be subject to access charges or USF. Noting AT&T hasn’t been paying the fees for several years, the letter said: “AT&T’s unauthorized self-deregulation disproportionately harms rural carriers and their consumers. Rural carriers rely on access revenues and universal service support to provide consumers in their regions with high quality, affordable telecommunications services… Additionally, AT&T’s claim that adding a recorded message transforms a traditional voice call into an enhanced service is illogical.” The group asked the FCC to act quickly and require AT&T to make retroactive payments: “Based on AT&T’s May 2004 10-Q filing, we calculate every month that goes by, AT&T is avoiding as much as $10 million in access charges and $2.3 million in universal service contributions. The FCC should not allow AT&T to chart its own course while it continues to deliberate these important issues.” The FCC reportedly has put the item on hold until after the election.

One of the few surprises at Wed.’s FCC mostly well scripted meeting was a strong statement from Comr. Copps warning that the FCC is still falling short on homeland security. Shortly after the session’s start, Copps -- responding to an FCC report on post-Sept. 11 communications changes that led off a meeting largely focused on homeland security -- addressed at length Commission shortcomings. Sources involved with emergency communications said Thurs. that issues remain, echoing in part Copps’ statements. Copps, sources said, delivered what he viewed as a moderate speech.

Wireline and wireless carriers alike opposed reseller TracFone Wireless’s request for universal service funding in N.Y., saying it would add pressure on the Universal Service Fund (USF) without benefits. But public interest groups said the entry of TracFone, which offers prepaid service, would help low-income consumers. TracFone had asked the FCC to give it eligible telecommunications carrier (ETC) status, needed to receive USF support, and to forbear from rules that require a carrier to have facilities of its own to receive that USF support.

Congress faces a choice between acting quickly to preempt states from regulating VoIP or taking more time to tackle the Internet service in a broader rewrite of the Telecom Act, House Telecom Subcommittee members said Wed. At a hearing on VoIP, industry witnesses disagreed. The preference seemed to be what some committee members considered impossible: A more comprehensive Telecom Act rewrite done quickly. House Commerce Subcommittee on Commerce Chmn. Stearns (R-Fla.) told us after the hearing, however, that the debate is more complicated than that. “Some of them [Commerce Committee members] don’t want to do anything at all,” he said. Full Committee Chmn. Barton (R- Tex.) didn’t take a position on the best approach, but he did predict “VoIP is going to be huge. I think it’s going to make cell phone expansion look like wagon trains.” Barton told the witnesses Congress will preempt states on VoIP regulation: “There should be only one, federal set of rules that apply to VoIP.”

Supported by at least 2 Bell companies, USTA urged the FCC in comments to leave the IP-enabled services market free of economic regulation. But some consumer groups argued the Commission should subject VoIP to Title II regulation to protect consumers, and use its authority to exempt such services from unnecessary regulations. The Local Govt. Coalition reminded the FCC it had “no power to adopt a comprehensive scheme for regulating information services independent of Title II, Title III or Title VI” of the Communications Act. Meanwhile, states pressed for a technology-neutral functional approach to VoIP oversight. “Regulators should not be choosing technology winners and losers,” NARUC Gen. Counsel Brad Ramsay told us. More comments were expected after our deadline Fri.

Year-long talks aimed at working out an agreement on access charges through the Intercarrier Compensation Forum (ICF) have collapsed for now, with the formal departure Wed. of several key members -- including BellSouth, which initiated discussions with AT&T last year. Many of the discussions had been at BellSouth’s Washington office.

Advanced telecom capabilities such as broadband are being deployed to all Americans in “a reasonable and timely fashion,” telecom and cable operators said in comments to the FCC Mon. The comments were filed in response to the 4th inquiry launched by the Commission under Sec. 706 of the Telecom Act earlier this year (CD March 12 p6). The Act requires that the Commission conclude the inquiry and report to Congress within 180 days.

Hours before the Senate took up legislation seeking to ban Internet access taxes, President Bush promoted the ban as a way to stimulate broadband deployment (see separate story, this issue). The Senate late Mon. was prepared to take a procedural vote as the first step toward consideration of S- 150 by Sen. Allen (R-Va.). S-150’s main opponent, Sen. Alexander (R-Tenn.), said Senate Majority Leader Frist (R- Tenn.) has been urging compromise for months, but said talks appeared to have failed: “We simply have a difference of opinion.”

Giving VoIP a “new voice in Washington and in states,” several VoIP providers led by the VON Coalition officially announced a group to encourage a public policy that refrains from applying traditional telecom regulation to Internet voice communications. The group, called The Voice Over Internet Coalition, includes AT&T, Callipso, Convedia, iBasis, Intel, Intrado, ITXC, MCI, PointOne and Texas Instruments. The group, which has unofficially operated a few weeks (CD Dec 10 p4), announced new members and expanded principles Mon.