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.

Even if it’s VoIP, telecom is “an essential public service” and local govts. will want to make sure reliable service is available to the public, said Marilyn Showalter, chmn. of the Washington Utilities & Transportation Commission. NATOA Pres. Coralie Wilson said govts. “simply cannot let technical standards lapse” just because of VoIP: “We need assurance the network will continue to operate.” Speaking on the same local govt. panel here, Neb. PSC Comr. Anne Boyle said “consumer protection goes beyond CALEA and E911.” She said VoIP providers need to comply with best practices, as well as with good customer service, and consumers are “who the government is there to protect.” At a later panel of FCC bureau chiefs, Wilson raised the question of mandating technical standards for new telecom services. He got little response, other than from Robert Pepper, FCC chief of policy development. Pepper indicated only that the Network Reliability & Interoperability Council would deal with such issues, and that the diversification of telecom into wireless and IP-based services increases diversity of the overall network. Local govt. officials spent much of their time talking about how to assure Universal Service Fund (USF) funding with the arrival of new technologies. Cal. PUC Comr. Susan Kennedy endorsed a per-number USF fee. Showalter agreed that’s probably “pretty reasonable,” though she said in the long term telephone numbers won’t be needed. Fla. PSC Comr. Charles Davidson, however, said USF “needs a business plan… It shouldn’t be a program that just expands and becomes a new tax.” Showalter suggested broadband will be necessary in the future and if people can’t afford it “government must assure that it gets there.” Kennedy, however, said Internet and video services “clearly” don’t qualify for USF. -- MF

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.”

Inflexion Communications asked the FCC to rule that the VoIP services it provides for underserved markets are exempt from the access charges applied to circuit switched telephone toll calls. “The petition is specifically focused on underserved market segment,” Inflexion CEO Dwayne Goldsmith said in a conference call Mon. with reporters.

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.