Were the FCC to base the universal service contribution system on telephone numbers, elderly and low- income people would suffer financially, a coalition of public interest groups said Thurs. Emphasizing FCC Chmn. Martin’s support for a numbers-based plan, members of the Keep Universal Service Fund Fair Coalition said at a news conference the plan would hike phone charges paid by “the most vulnerable of Americans.” The current revenue-based collection plan only charges when long distance calls are made, but the numbers-based plan would charge a fixed $1 or $2 a month, said Linda Sherry, Consumer Action dir.- national priorities: “One of the most alarming aspects of the numbers-based proposal is that no one has yet produced an estimate of the effect of the change on low-income consumers… It does not make sense for the FCC or Congress to change the collection of USF funding without first taking a long, hard look at who would pay the piper for the so-called ’simplicity’ of a numbers-based plan.” The coalition released a report it said offers “the first public estimate of the number of vulnerable consumers… and the extra dollars they would be forced to pay” whether directly through higher USF costs or indirectly through higher phone rates. According to the report, about 16 million households, mostly low-income or elderly individuals, that generally make no long distance calls, would pay up to $383 million more “under the Martin scheme.” Another group of 27 million low-volume users would pay up to $324 million more, the report said. The FCC is considering several ways to reform the contributions system, which now collects from carriers about 10% of revenue that long distance calls generate. Carriers pass the costs on to consumers. The coalition offered a “compromise” plan in which the current revenue- based system would continue but with VoIP revenue added. The plan would cap contributions at 12-15% of interstate revenue. If that didn’t collect enough money to support the USF program, a small numbers-based contribution -- “cents rather than dollars” -- would take effect as a “fall back,” Sherry said. The FCC now uses a “pay as you use it” system and shouldn’t move to a numbers-based “pay as you don’t use it” plan, Sherry said. FCC officials didn’t comment on the groups’ analysis because a contributions reform plan hasn’t been proposed yet.

Universal service fund (USF) support would be used for broadband deployment, under a discussion draft released Thurs. of a bill by Reps. Terry (R-Neb.) and Boucher (D-Va.). The bill would expand the USF base by requiring payments into the fund by service providers that use telephone numbers or IP addresses or sell network connections. “To change USF, I believe that all who play must pay,” said Terry. He called the draft a vehicle for reform that would remedy “inequities that exist today.” Boucher said he’s seeking comments on the draft by Dec. 23 and plans to introduce a bill next year.

Clearer rules and procedures would go far to improve management of the universal service fund (USF), the FCC was told by a variety of organizations. USF management can be confusing and inefficient for contributors and recipients, according to some comments, but many said the problems don’t stem from the Universal Service Administrative Co. (USAC) the non-profit that administers USF. The agency had sought comments on the entire USF program, including the high-cost fund, E-rate and smaller programs (CD June 15 p8).

Four rural telecom bodies have allied to strengthen their lobbying power as Congress eyes policy changes on issues such as universal service. At a news conference Thurs., members of the Coalition to Keep America Connected said the impending Telecom Act revision spurred creation of the group, made up of the Independent Telephone & Telecom Alliance, NTCA, OPASTCO and the Western Telecom Alliance.

The “digital divide” is a growing problem that Congress must not ignore as it takes up DTV legislation and a rewrite of telecom laws, civil rights groups said at a panel Tues. “The digital divide is clearly large, and it’s not disappearing soon, and it’s much larger for children than adults,” said Robert Fairlie, prof., U. of Cal.-Santa Cruz. Blacks and Latinos are much less likely than white, non-Latinos to have access to home computers (50.6% and 48.7% compared to 74.6%), Fairlie said, citing a recent study he did for the Leadership Conference on Civil Rights Education Fund. They're also less likely to have Internet access at home (40.5% and 38.1% compared to 67.3%).

The “digital divide” is a growing problem that Congress must not ignore as it takes up DTV legislation and a rewrite of telecom laws, civil rights groups said at a panel Tues. “The digital divide is clearly large, and it’s not disappearing soon, and it’s much larger for children than adults,” said Robert Fairlie, prof., U. of Cal.-Santa Cruz. Blacks and Latinos are much less likely than white, non-Latinos to have access to home computers (50.6% and 48.7% compared to 74.6%), Fairlie said, citing a recent study he did for the Leadership Conference on Civil Rights Education Fund. They're also less likely to have Internet access at home (40.5% and 38.1% compared to 67.3%).

The “digital divide” is a growing problem that Congress must not ignore as it takes up DTV legislation and a rewrite of telecom laws, civil rights groups said at a panel Tues. “The digital divide is clearly large, and it’s not disappearing soon, and it’s much larger for children than adults,” said Robert Fairlie, prof., U. of Cal.-Santa Cruz. Blacks and Latinos are much less likely than white, non-Latinos to have access to home computers (50.6% and 48.7% compared to 74.6%), Fairlie said, citing a recent study he did for the Leadership Conference on Civil Rights Education Fund. They're also less likely to have Internet access at home (40.5% and 38.1% compared to 67.3%).

State lawmakers from across the U.S. will tackle telecom and technology issues this week at the National Conference of State Legislatures’ annual conference in Seattle. Proposed state and national telecom law rewrites and wrangles over municipal Wi-Fi are among the hot topics at the 5-day conference, which begins today (Tues.). About 7,000 state legislators, policy experts, advocates, govt. leaders and media are expected to attend.

State lawmakers from across the U.S. will tackle telecom and technology issues this week at the National Conference of State Legislatures’ annual conference in Seattle. Proposed state and national telecom law rewrites and wrangles over municipal Wi-Fi are among the hot topics at the 5-day conference, which begins today (Tues.). About 7,000 state legislators, policy experts, advocates, govt. leaders and media are expected to attend.

The FCC voted at its open meeting Fri. to reduce regulation of wireline broadband service by reclassifying it as an “information service,” in line with the FCC’s treatment of cable modem service. The U.S. Supreme Court in June upheld the agency’s cable modem classification in the Brand X case, triggering action on the wireline companion piece which had been placed on hold during the litigation.