Proposals to overhaul the Universal Service Fund mechanism including eliminating funding for voice-only networks will involve 10 years of transforming the high-cost fund into the Connect America Fund, the FCC said Friday. That’s intended to extend broadband service and provide ongoing support in certain areas without increasing the overall USF $8 billion cap, the agency officials told reporters. The proposed change is an attempt to transition from supporting voice telephone services to using funds to deliver broadband networks, said Omnibus Broadband Initiative Executive Director Blair Levin.
Small rural telcos must answer questions about practices that large carriers call traffic pumping to increase access revenue, Democratic leaders of the House Commerce Committee told the companies in 24 letters sent late Tuesday. The inquiries follow up on October letters (CD Oct 15 p13) to AT&T, Verizon, Qwest and Sprint Nextel. An attorney for addressees of the new letter said he expects the rural carriers to be eager to cooperate.
Congress is watching the planned merger of Comcast and NBC Universal closely, and members are expected to weigh what it means to consumers and competitors, said Hill and industry figures. “This is one of the larger consolidations in the telecom/media space in history, and it is a matter of public interest, [and] it’s a matter of interest to those of us involved in telecommunications policy,” said House Communications Subcommittee Chairman Rick Boucher, D-Va., in an interview. Boucher also outlined his legislative priorities for the new term, including work on a spectrum inventory, Internet privacy and the Universal Service Fund.
The Telecommunications Industry Association asked the FCC to remake the Universal Service Fund into a broadband fund, in comments on National Broadband Plan Public Notice #19, on USF and intercarrier compensation issues. Five mid- sized incumbent telcos offered a proposal for revamping both. Most filers agreed that USF and ICC overhauls should be included in the plan, due to be submitted to Congress in February. Many comments built on those filed in previous comment rounds.
CTIA weighed in for the first time on Local Switching Support. The association called for comprehensive changes in the Universal Service Fund and opposed what it called a “backward-looking petition” by the Coalition for Equity in Switching Support. FCC Chairman Julius Genachowski circulated a draft notice of proposed rulemaking that tentatively concluded incumbent local exchange carriers should get additional universal service support under the LSS mechanism if they lose a significant number of access line customers (CD Oct 13 p8). But the commission asked for more data before it makes a final decision.
Libraries face a “broadband crisis” because of increased demand from their patrons and the growing number of bandwidth-intensive applications, combined with limited resources to meet growing needs, the American Library Association said in a filing at the FCC, on National Broadband Plan Public notice No. 15, on broadband access in education. ALA urged the FCC to increase the current $2.25 billion cap on the E-rate program, which it said is a necessary step if libraries are to continue to provide broadband access to the communities they serve.
Libraries face a “broadband crisis” because of increased demand from their patrons and the growing number of bandwidth-intensive applications, combined with limited resources to meet growing needs, the American Library Association said in a filing at the FCC, on National Broadband Plan Public notice No. 15, on broadband access in education. ALA urged the FCC to increase the current $2.25 billion cap on the E-rate program, which it said is a necessary step if libraries are to continue to provide broadband access to the communities they serve.
Libraries face a “broadband crisis” because of increased demand from their patrons and the growing number of bandwidth-intensive applications, combined with limited resources to meet growing needs, the American Library Association said in a filing at the FCC, on National Broadband Plan Public notice No. 15, on broadband access in education. ALA urged the FCC to increase the current $2.25 billion cap on the E-rate program, which it said is a necessary step if libraries are to continue to provide broadband access to the communities they serve.
Libraries face a “broadband crisis” because of increased demand from their patrons and the growing number of bandwidth-intensive applications, combined with limited resources to meet growing needs, the American Library Association said in a filing at the FCC, on National Broadband Plan Public notice No. 15, on broadband access in education. ALA urged the FCC to increase the current $2.25 billion cap on the E-rate program, which it said is a necessary step if libraries are to continue to provide broadband access to the communities they serve.
Draft universal service reform legislation announced Friday would cover broadband, expand the contribution base and cap high-cost support, said House Communications Subcommittee Chairman Rick Boucher D-Va., and Rep. Lee Terry, R-Neb. This is the third round of legislation the two lawmakers have worked on, and comes after months of negotiations among industry and regional regulators. “The Universal Service Fund is broken,” said Boucher and Terry. Consumers will pay more than 14 percent of long-distance revenue into the fund next year, up from 12 percent in 2009, they said. A hearing on the draft is planned for Nov. 17.