A hefty increase in the amount of money telecom carriers, and ultimately consumers, must contribute to the Universal Service Fund beginning in April has triggered renewed calls by industry groups for USF reform. The FCC late Thurs. raised the so-called “contribution factor” -- the proportion of interstate and international revenue that telecom carriers must donate to the fund -- to 11.7% from 9.7% for the 2nd quarter, starting in April. The industry money goes to USF subsidies.

Mass. consumers will benefit if the FCC shifts universal service contributions from a revenue base to phone numbers, a pro-numbers group said Fri., challenging predictions of harm to consumers by the Mass. Consumer Coalition and the Keep USF Fair Coalition (CD March 9 p10). Opponents used “incorrect data and ‘funny math,'” said the USF by the Numbers Coalition. The opposing group “exaggerates how high numbers- based assessments would be” and overstates what Mass. customers now contribute to USF, said USF by the Numbers, composed of AT&T, CTIA, NCTA, USTelecom, Verizon, VON Coalition, DSL.Net, GCI and IDT Corp.

Mass. consumers stand to lose $158 million a year if proposals to shift federal universal service contributions from a revenue base to a numbers or connections base are adopted, according to the Mass. Consumer Coalition and the Keep USF Fair Coalition. The groups, at a news conference in Boston, said the shift would hurt most the rural, minority, low-income and elderly phone customers who make few long distance calls. They said universal service contributions from Mass. would jump to $266 million a year on a connection- based assessment, from $108 million under the current system based on long distance revenues, assuming a fee of $1.50 a connection. The groups said those who use little long distance would suffer mammoth increases in their USF contributions, with the result that those who don’t make long distance calls will be subsidizing those who use lots of long distance.

Some industry groups are using an FCC notice of proposed rulemaking on USF contribution methodology to argue for moving to a number-based method of calculating payments -- a question the FCC never raised, NASUCA claimed. The VON Coalition, CTIA and other groups said tweaks to current methodology will fall far short of needed reform.

Deregulating the Bells’ broadband transmission services would hurt rural telephone companies that rely on them for Internet backbone service, the National Telecom Co-op Assn. told the FCC in comments filed Thurs. The Bells are the only Internet backbone providers available to rural telephone companies in many areas, NTCA said: “NTCA is concerned for its members who will rely on BellSouth and Qwest for access to the IP backbone.”

Deregulating the Bells broadband transmission services would hurt rural telephone companies that rely on them for Internet backbone service, the National Telecom Co-op Assn., told the FCC in comments filed Thurs. The Bells are the only Internet backbone providers available to rural telephone companies in many areas, NTCA said: “NTCA is concerned for its members who will rely on BellSouth and Qwest for access to the IP backbone.”

More interim changes to the Universal Service Fund (USF) contributions system simply will delay reform, VoIP providers and others told the FCC in comments filed Wed. The FCC in a June order making interim fixes (CD June 22 p1), asked if more temporary changes were due. Commenters told the FCC not to waste time on interim fixes but to replace the revenue- based system.

Broadband Internet access providers “over all platforms” should contribute to the Universal Service Fund, 3 groups representing rural telecom companies told the FCC in an Aug. 4 ex parte. A recent FCC vote to raise the safe harbor for wireless USF contributions and to add VoIP providers to the USF contributions pool was “positive and necessary” but not enough to assure the fund’s “sustainability,” OPASTCO, the Independent Telephone & Telecom Alliance and Western Telecom Alliance said Aug. 4. As of Aug. 14, facilities-based DSL providers operating as non-common carriers no longer must contribute. Wireless and VoIP contributions might offset this drop in contributions, but “there is no assurance this will occur,” the groups said.

Broadband Internet access providers “over all platforms” should contribute to the Universal Service Fund, 3 groups representing rural telecom companies told the FCC in an Aug. 4 ex parte. A recent FCC vote to raise the safe harbor for wireless USF contributions and to add VoIP providers to the USF contributions pool was “positive and necessary” but not enough to assure the fund’s “sustainability,” OPASTCO, the Independent Telephone & Telecom Alliance and Western Telecom Alliance said Aug. 4. As of Aug. 14, facilities-based DSL providers operating as non-common carriers no longer must contribute. Wireless and VoIP contributions might offset this drop in contributions, but “there is no assurance this will occur,” the groups said.

A collection system for the Universal Service Fund (USF) based on telephone numbers gained the support of a new telecom alliance called the USF by the Numbers Coalition. The coalition - made up of groups such as NCTA, CTIA and USTelecom and its members AT&T and BellSouth -- held a news conference call Tues. to “set the story straight” on misconceptions about the plan, it said.