State PUCs will have a major say in the eligible telecom carrier (ETC) question in AT&T’s plan to buy T-Mobile (CD March 22 p1), said Brian O'Hara, NARUC legislative director. ETC issues might not derail the deal, but could make it slightly less profitable for the combined company if there’s reduced or eliminated USF support, he said. Based on further discussions with many states, it appears that states are trying to determine their role as well, he said. Most state regulators require carriers to submit transfer of asset applications that must be approved, but “that is a far cry from full blown merger review,” he said.

EchoStar’s purchase of Hughes could lead to a policy shift by the second company on the Universal Service revamp because the acquiree has voiced different positions on the issue from the acquirer, FCC filings show. Hughes, which has previously said satellite broadband should be left out of the USF and Connect America fund, could change its position if EchoStar takes over. A united satellite broadband front would “be a big positive for the industry and provide a very strong response to the FCC” General Counsel Lisa Scalpone of WildBlue said in an interview.

FCC review of the proposed AT&T/T-Mobile deal (CD Bulletin March 21) could take at least a year because the commission will review not only the deal’s impact on the national market but will go through individual markets around the country to assess the costs and benefits of the merger, an agency official said Monday. The commission is already trying to build up staff in the Wireless Bureau for the review, the official said. One name that has already surfaced is FCC economist Susan Singer, who had been detailed to the Office of Strategic Planning and may well be recalled to the Wireless Bureau to lead its review, the official said.

ORLANDO, Fla. -- Regardless of what deals may be struck that reconfigure the wireless industry, carriers will need more spectrum, said Rick Kaplan, senior advisor to FCC Chairman Julius Genachowski. Kaplan declined to comment on AT&T’s proposed purchase of T-Mobile. (See separate story in this issue). The deal soon will be pending before commissioners. Genachowski did not release a statement on the merger after it was announced Sunday, but is slated to keynote at CTIA Tuesday.

The FCC went on the defensive Wednesday, saying it had implemented 80 percent of the National Broadband Plan, countering media reports that more than half of the plan’s recommendations were lingering in the agency’s backlog. Of the action items released in April, 80 percent have been completed, a commission spokesman said Wednesday. The broadband plan’s first anniversary is Thursday. The plan carried 218 recommendations with it, but only about half involved the FCC’s jurisdiction, the spokesman said. Another quarter involved Congress and the rest went to state and local regulators, the spokesman said.

The FCC’s order reducing high-cost Universal Service Fund support to competitive eligible telecommunications carriers violated the Administrative Procedure Act (APA) and the telcos’ Fifth Amendment protection against illegal takings, 13 of the CETCs said in a petition released Friday. In language that suggests the carriers are considering seeking an injunction, the telcos said they “are each adversely affected” by the Wireline Bureau’s “decision to retroactively modify the cap level.” The petition’s signers were AST Telecom, Bluegrass Cellular, Cellular South Licenses, Union Telephone, Corr Wireless, East Kentucky Networks, Illinois Valley Cellular, Cellular One, Commnet Wireless, MTPCS, PR Wireless, Georgia RSA #8 Partnership and Allied Wireless.

Rep. Greg Walden, R-Ore., is undaunted by a likely presidential veto of any bill to overturn FCC net neutrality rules, he said in an interview for C-SPAN’s The Communicators. The House Communications Subcommittee chairman isn’t worried about the lack of industry support either, he said. Walden outlined plans to aggressively pursue other communications issues once net neutrality is resolved.

National Broadband Plan architect Blair Levin said the speech by his old boss, FCC Chairman Julius Genachowski, announcing the plan was effective in winning short-term publicity but “muddied the waters for the universal service debate” because it focused on speed goals.

Sprint Nextel has lost its effort to stay an Iowa order requiring payment of intrastate access of interconnected VoIP. That may be the beginning of a series of battles over VoIP as the FCC moves ahead with its Universal Service Fund revamp, said state and industry officials. Meanwhile, the U.S. District Court for the Eastern District of Virginia recently ruled that by refusing to pay access charges for VoIP traffic, Sprint Virginia is in violation of 19 interconnection agreements with CenturyLink business units.

Even historically nonpartisan telecom issues have become political in an increasingly divided Congress, and it’s become increasingly difficult to pass substantive legislation, former Sen. Byron Dorgan, D-N.D., said in an interview Thursday with Communications Daily. The Commerce Committee alum urged the FCC to complete what Congress couldn’t: an overhaul of the Universal Service Fund. Dorgan blamed radio talk show hosts for politicizing the net neutrality debate, but he predicted demise for Republicans’ effort to overturn the FCC’s December order using the Congressional Review Act.