Small and mid-sized wireless carriers, cable operators and competitive local exchange carriers all criticized parts of the America’s Broadband Connectivity (ABC) plan for making major changes to the Universal Service Fund and intercarrier compensation regimes. The plan, a compromise among major telecom carriers and rural local exchange carriers, is unlikely to be approved without some changes, said industry and FCC officials. The trick for the FCC will be keeping ILECs on board while accommodating other interests (CD Aug 25 p1). The FCC also asked for comment on a “complementary” filing by rural carriers as well as proposals by the Federal-State Joint Board on USF, also discussed in many of the comments.

The adoption of the America’s Broadband Connectivity Plan (ABC Plan) for Universal Service Fund and intercarrier compensation revamp would “send us to the nearest federal court of appeals,” James Cawley, state chairman of the USF Federal/State Joint Board, told us. Most of the state commissions that filed with the FCC on the agreement oppose preemption of state role in determining USF eligibility. But Wisconsin regulators support some limited preemption of state authority and unified access charge rates.

CTIA questioned whether the $300 million dedicated annually to support of mobile broadband services by the USTelecom-brokered agreement on Universal Service Fund and intercarrier compensation regime reforms is enough to meet the nation’s needs. CTIA filed comments late Wednesday on the plan and USF overhaul. (See related story in this issue.) “CTIA applauds the recognition of the need for on-going support for mobile services, however, this funding level appears insufficient to meet the needs of mobile broadband consumers in high-cost areas,” the group said (http://xrl.us/bmbduq). “This is particularly true given that CTIA submitted a cost study in 2008 demonstrating that it would require an investment of approximately $22 billion to bring ubiquitous 3G service to unserved areas.” As it decides the proper allocation to wireless, the FCC should “take account of the fundamental nature of mobile networks, which must be available wherever Americans live, work, and travel,” CTIA said.

For the second time in three years, the FCC could be on the cusp of making major changes to the Universal Service Fund and intercarrier compensation regimes. In late 2008, those efforts fell flat when then-Chairman Kevin Martin appeared to have support lined up for a reform order, but pulled an item prior to a vote. All signs this time around are that Chairman Julius Genachowski would like to succeed where the former commission fell short.

NCTA and the American Cable Association jointly raised concerns about a USTelecom-brokered compromise proposal on Universal Service Fund and intercarrier compensation reform, in a letter to FCC Chairman Julius Genachowski sent Tuesday. Cable operators, as key competitors to telecom carriers for voice and data, are expected to be key players as the commission looks at changing its rules for USF and intercarrier comp. Comments are due Wednesday at the FCC on the so called “consensus” agreement.

The FCC should take “swift and decisive” action to “promote universal broadband connectivity and advanced Internet protocol (IP) networks” as it moves forward on Universal Service Fund and Intercarrier compensation reform, Google, Skype, Vonage, the Ad Hoc Telecommunications Users Committee and Sprint Nextel said in a filing to the commission (http://xrl.us/bmasxm). The filing proposes its own principles for reform, starting with an argument that the legacy USF should eventually be eliminated, in favor of a new fund that pays for broadband.

Building a national wireless broadband network for public safety is the top telecom priority this fall for the Senate Commerce Committee, committee aides said. House Democratic and Republican staff, meanwhile, have continued discussions on spectrum legislation through the August recess, House officials said. Senate Commerce Committee Chairman Jay Rockefeller, D-W.Va., also is closely watching the FCC as it attempts to overhaul the Universal Service Fund and the committee may have a hearing on the AT&T/T-Mobile deal, his spokeswoman said. Senate Republicans, meanwhile, are poised to move their Congressional Review Act rebuke of the FCC’s net neutrality order.

The Rural Cellular Association seconded an op-ed by ex-Sen. Byron Dorgan, D-N.D., on the FCC’s proposed overhaul for the Universal Service Fund. Dorgan, now senior policy adviser at Arent Fox, said earlier this week that the current USF proposal could undermine phone and broadband service in rural areas (CD Aug 18 p8). “Sen. Dorgan’s concern for rural America is well-documented and well-founded,” RCA President Steve Berry said Thursday. “Many of the reforms currently under consideration would rob these Americans of any real choice in their broadband selection by largely cutting wireless companies out of the picture, and undermining the ability of those wireless companies to maintain and extend rural coverage. These kinds of reforms are wholly irrational considering the obvious consumer preference for mobility."

Recovery funding for price cap carriers necessary as a result of the plan filed by a USTelecom-organized group of carriers (CD Aug 1 p1) “will be relatively small and will fit easily within the overall budget set out in the Consensus Framework.” That’s what leading members of the group told Wireline Bureau Chief Sharon Gillett and other FCC officials. The group “committed to file information showing year-by-year modeling of the transition from current USF to a reformed system focused on supporting broadband,” it said in a filing (http://xrl.us/bk97hv). “That modeling will include both the ... plan and Joint Rural Association filing as modified by the Consensus Framework.” The group “also discussed the likelihood that there are a significant number of locations without broadband service that are in areas that are not modeled as high-cost, and what solution the” plan would provide for such locations,” it said. The “plan is focused on supporting the delivery of broadband in high-cost areas and does not directly address unserved locations in areas that are not high-cost,” the filing said. The “plan would account for new service locations in areas that receive broadband support,” it said “Under the plan, new service locations within supported areas would be included in the support recipient’s broadband network obligations or through operation of the alternate technology provisions of the plan."

The National Conference of State Legislatures approved a resolution at its 2011 Legislative Summit, urging Congress, the FCC and state regulators and legislators to review and address the requirements and goals for universal service by adopting policies that promote universal mobility and universal competition. Any federal USF revamp shouldn’t impact or hinder innovation at the state level or interfere with the administration of state USF, the resolution said. While investments in communications infrastructure have received considerable national attention, the federal government must recognize that states have unique priorities that require state and regional specific solutions, the resolution said. NCSL urges Congress to work with states in developing an integrated broadband strategy to ensure universal deployment and affordable access to every constituent, regardless of geography or economic status. NCSL supports the creation of a national advisory board, including state, federal and local policymakers, as well consumer and industry representatives, to develop principles to facilitate deployment of advanced broadband communications services. NCSL urges the FCC, in conjunction with state, federal and local policymakers, to reevaluate the distinction between telecom and information services and gather additional information on the state of advanced broadband and communications services. Meanwhile, NCSL will oppose any effort to authorize or prohibit the establishment of municipal or state created public agencies broadband networks through congressional or federal regulatory action. Should Congress or the federal government take such action, NCSL will challenge the constitutionality of such action. NCSL also urges state and federal policymakers to work together to ensure that industry targeted consumer protections can be applied within a national framework that ensures the continued ability of the state attorneys general to enforce such consumer protections. In order to preserve the states’ sovereignty, NCSL endorses state action to enhance the use of collocation of cell antennas and the streamlining of the current tower siting process. Collocation of antennas should not be subject to additional zoning, land-use or regulatory approval process beyond the initial process for siting the wireless facility. NCSL also believes government should not levy discriminatory fees for the siting of wireless facilities or the application for collocation. Application fees levied on the siting as well as taxes on the wireless facility must not be higher than fees or taxes applied to other general business. While NCSL acknowledges the historic role of states as the primary regulator of intrastate telecom, state legislators also recognize that the historic distinctions between intrastate and interstate communications is fast becoming irrelevant in today’s global marketplace. Services like VoIP that involve integrated functionalities that cannot even be characterized as jurisdictional, it said. NCSL calls upon the Congress and the FCC to partner with states in a national framework for communications policy that ensures minimal regulation but guarantees “all Americans with a choice of mediums and service providers.”