The FCC Wireline Bureau seeks comment on its proposed data specifications for collecting study area boundaries to implement reforms that are part of the USF/intercarrier compensation order (http://xrl.us/bnabtn). The bureau proposed to collect boundary data from all ILECs using the same data specifications, and seeks comment on the proposal. The data collection is in response to concerns over the accuracy of Tele Atlas wire center data used to determine benchmarks to limit recovery of capital costs and operating expenses for high-cost loop support, a public notice said. Accurate service area boundaries will also be necessary in order to implement the Connect America Fund Phase II reforms, which will use a combination of competitive bidding and a forward-looking cost model to provide USF money in areas served by price-cap carriers. The bureau sought comment on a voluntary process for state commissions to resolve overlap claims. Comments are due July 2 in docket 10-90, replies July 17.

Recent FCC changes to USF subsidies for rate-of-return ILECs are “modest and overdue,” CTIA and NCTA argued Friday in oppositions to several requests for commission-level review of new rules designed to limit reimbursable capital and operating costs. They said a stay would harm competing providers if the ILECs were “allowed to continue receiving excessive and inefficient amounts” of high-cost loop support (HCLS) in areas where the support is unwarranted. The NTCA, OPASTCO and others petitioned for review of the Wireline Bureau’s HCLS Order in late May, arguing the quantile regression methodology imposes unreasonable burdens on rural LECs, applies support limits randomly and will fail to provide incentives for efficient operations (CD May 29 p7).

U.S. Agriculture Secretary Tom Vilsack thinks the new FCC rules on high-cost loop support make the USF less predictable, and that the Wireline Bureau’s waiver process uses the wrong standard, he told FCC Chairman Julius Genachowski last week. The commission has received several petitions for review of the Wireline Bureau’s HCLS Benchmarks Order setting out a regression methodology for determining reimbursable support on capital expenditures. Six companies have filed waiver requests of the various rules adopted in last fall’s USF/intercarrier compensation order, an FCC spokesman said.

The National Telecommunications Cooperative Association is still concerned about “the many questions still swirling” regarding implementation of the changes made last fall to reimbursable capital costs through the USF, it told an aide to FCC Chairman Julius Genachowski Wednesday, according to an ex parte filing (http://xrl.us/bm9yfi). NTCA urged the commission to take the time to evaluate “through a data-driven process” the impact of those changes on rural customers, “and the fundamental objectives of universal service."

The FCC Wireline Bureau Thursday granted four petitions seeking temporary waivers of a June 1 deadline to implement new Lifeline eligibility rules (http://xrl.us/bm9yxb). The bureau gave USTelecom a six-month extension for 13 of the states indicated in its petition, as well as the eligible telecom carriers in those states that rely on the state to sign someone up for Lifeline. It also granted extensions for California to transition to a new third-party vendor and enable collection of partial Social Security information and dates of birth; and to Oregon and Colorado, which need to change their state laws to reflect new federal rules.

Representatives from Dickey Rural Telephone Cooperative met with FCC Wireline Bureau officials and an aide to Commissioner Jessica Rosenworcel last week to discuss how the company might “salvage” its efforts to continue broadband service “in light of USF reforms and the resulting curtailment of universal support that DRTC had been receiving,” according to an ex parte notice (http://xrl.us/bm9ph8). Dickey will have to suspend its free Internet classes and “Rural PC Project,” which subsidizes computers for those in Dickey’s rural service area, the coop said, “thus ending ... successful broadband adoption initiatives."

New intercarrier compensation and USF reform measures adopted in last fall’s FCC order and further notice create too much uncertainty to support future investment in network upgrades, representatives of the Iowa Telecommunications Association told an aide to Commissioner Mignon Clyburn Wednesday (http://xrl.us/bm9axr). They provided examples of Iowa companies that have “delayed or halted” plans to upgrade broadband networks to their customers because of this uncertainty. They also urged the commission to develop a “reasonable” waiver process, and to take strong action on the ongoing call completion problems faced by rural customers.

BOSTON -- State telecom regulators took a largely dim view of the FCC’s ability to regulate state and local policy matters, as they grappled with the potential components of a prospective 2013 Telecom Act. Speaking on a Cable Show panel on public utility commissions late Tuesday, state regulators generally agreed that any proposed broad new telecom law should have the FCC set fewer specific rules while allowing them more leeway to regulate local issues as they see fit. Speaking earlier at the conference, aides to legislators had said the 1996 Telecom Act may be updated, though it could take years (CD May 22 p5).

BOSTON -- Usage-based data pricing can spur competition in broadband, FCC Chairman Julius Genachowski said of ISPs’ moves to systems not always charging flat prices regardless of consumption. NCTA CEO Michael Powell asked Genachowski about the practice in a Q-and-A Tuesday at The Cable Show, noting ISPs of all sorts, including cable operators, are starting to charge based on consumption. “Business model innovation is very important, particularly in new areas like broadband,” Genachowski replied. The commission’s 2010 net neutrality order allowed such practices. Nonprofits that backed the order criticized Genachowski’s remarks, while AT&T supported the comments.

BOSTON -- Updating the Telecom Act or 1992 Cable Act is on the radar screens of aides from both parties on the House and Senate Commerce committees, they told a panel Monday at the Cable Show. They generally agreed that any update to the 1996 law could take years, and some said a more piecemeal approach could move on Capitol Hill more quickly but still would take time. Representatives from both parties said their bosses backed the FCC’s approach to reforming the USF, with an aide to Sen. Roger Wicker, R-Miss., saying that if the commission doesn’t keep up its momentum on the contribution side, the Hill could eventually step in.