A markup on Universal Service Fund legislation may still be a ways off, telecom industry officials said after the House Communications Subcommittee set plans for a USF hearing next Thursday. The subcommittee plans to discuss but not mark up HR-5828 by Chairman Rick Boucher, D-Va., and Rep. Lee Terry, R-Neb., the subcommittee said Thursday. “The hearing could make a potential markup in subcommittee an easier lift,” but “I'm not sure there’s enough days left on the calendar,” said Vice President Paul Raak of the Independent Telephone & Telecommunications Alliance. “The hearing will provide a good opportunity for members of Congress and the FCC to hear the broad industry support the legislation has.” Boucher wants a subcommittee markup and probably will try to get one before the mid-term elections recess starting Oct. 8, but it’s unclear if there’s enough time, said another telecom industry official. The hearing is scheduled for 10 a.m. in Room 2322, Rayburn House Office Building. It’s a hearing rather than a markup because the bill differs from a draft that got a hearing last December, a House staffer said. Getting the legislation to markup remains a priority for Boucher, but no date is set, the staffer said.

Wireline and wireless carriers said the FCC should back away from the controversial finding in its most recent Section 706 report that the commission couldn’t conclude broadband is being deployed to all Americans in a “reasonable and timely” way (CD July 21 p1). But Free Press said the commission was on the right track when it approved its sixth broadband deployment report during the summer and the seventh report should have the same finding. CTIA said the sixth report put too much emphasis on the speed of connections, to the detriment of wireless.

Rural Cellular Association President Steve Berry said he’s disappointed in Friday’s FCC decision on Universal Service Fund payments to eligible telecommunications carriers (CD Aug 7 p1). “The FCC just doesn’t seem to understand that a few million dollars in the right places for the right reasons will help bring mobile broadband to the most difficult and most costly areas in the U.S.,” Berry said. “That is where USF can and is supposed to make a difference. Doing the right thing might not be as easy -- but that is why they are there.”

A draft FCC order ties the E-Rate index to inflation and lets schools and libraries lease dark fiber from utility companies other than telcos, advisors to three commissioners said. The proposed order circulated Thursday by Chairman Julius Genachowski would also make permanent a temporary provision that allows communities to use schools’ and libraries’ systems after hours, the aides said. Genachowski is seeking a vote on the order at the Sept. 23 meeting.

There’s no reason for the FCC to delay approval and release of an order that would allow states to require providers of nomadic VoIP service to contribute to state universal service funds, NARUC said in an FCC filing. Some providers seek a rulemaking to further delay their “obligations” to pay -- as their competitors pay -- to support state programs, NARUC said. They have raised as an issue -- “the unlikely scenario that one or more consumers -- in theory -- might actually pay into two state programs,” it noted. Currently, at least one state requires the in-state USF revenue identification to be based on billing addresses and at least one other State requires revenue identification to be based on primary service address. However, this “unlikely scenario” provides no basis for delay or a drawn out rulemaking, NARUC said, saying there’s no evidence in the record that this circumstance has actually occurred or “even likely to occur.” The group cited Sandy Reams, managing auditor for the Kansas Corporation Commission, saying Kansas is the only state currently assessing nomadic interconnected VoIP providers for state USF purposes. So no conflict between the revenue-identification methods currently exists. Reams also noted once the FCC issues an order and Nebraska and New Mexico implement the assessment on providers of nomadic interconnected VoIP service, it will be rare for a carrier to be assessed on the same revenue by two different states. The nomadic carriers have raised “an unsupported allegation as a fact” -- that a significant quantum of customers may be subject to overlapping state assessments -- as a defense to complying with what the FCC has found to be clear Congressional intent that Vonage contribute to state programs, NARUC said. Vonage (or other nomadic carriers) are the only parties to this proceeding in a position to demonstrate if the claim is true, it said. Vonage has provided no evidence a single customer in any state is in a position to be actually harmed based on the methods suggested by the Nebraska and Kansas commissions (or any other actual State commission rule or proposed rule), NARUC said. Additionally, if it actually does happen, the states will assure the affected customer “is made whole.” Two of the states involved have already specified, in the unlikely case that such a circumstance rises, they will work together to assure the consumer is not harmed. “In the unlikely event that a double assessment actually does occur,” the states can provide a credit to a carrier that is assessed twice on the same revenue,” it said. Meanwhile, states have successfully worked together on the issue for wireless providers, and that’s strong evidence that to the extent that any double billing issue arises, it will be readily resolved by the states’ collaboration, NARUC said.

The FCC should move quickly to end the debate over net neutrality, International Brotherhood of Electrical Workers International President Edwin Hill said in a written statement. “In response to the FCC’s call for public input to clarify the complicated issues regarding net neutrality, I urge a resolution of this sometimes thorny debate that has stalled efforts to build out and expand broadband access,” he said. “The telecommunications industry has for too long faced an unstable regulatory environment over these issues, threatening needed investment and job creation.” Hill also urged Congress to pass “narrowly-targeted legislation that protects the right of free speech on the Internet, allows federal Universal Service funding to be used to encourage broadband build-out in low-income and rural areas, and ensure that consumers will continue to have free access to the Internet content of their choice.” The commission made the right move in seeking additional comment as it considers net neutrality rules, said state Rep. Calvin Smyre, a Georgia Democrat and president of the National Black Caucus of State Legislators. “A fact-based discussion on these difficult, yet critical issues will bring us closer to ensuring an open, universal Internet for the future."

Parties have until Sept. 21 to comment on plans to increase Idaho’s universal service surcharge, the Utilities Commission said Thursday. The rise, from 10 to 12 cents per month per residential line and from 17 to 19 cents per business line, was ordered by the commission under a 1988 state law. Under the proposal, the surcharge for in-state toll calls also would rise -- from $0.003 per minute to $0.0035 per minute. Through June 30 the surcharge amassed $1.73 million, against payments from USF totaling $1.82 million to eight companies -- Albion Telephone, Cambridge Telephone, Direct Comm of Rockland, Inland Telephone, Fremont Telecom, Midvale Telephone Exchange, Rural Telephone and Silver Star Telephone, said the commission. Disbursements were $1.94 million in 2009. Cellphones’ popularity is resulting in customers taking out residential and business landlines, the commission said. As of May 1, carriers counted 328,592 residential lines in the state, down nearly 11 percent from a year before. Business lines fell 2 percent to 219,752. Long-distance billed minutes shrank 6 percent.

Competitive eligible telecommunications carriers won’t be able to help themselves to money left over from the surrender of Verizon Wireless’s and Sprint Nextel’s high-cost universal service funds, the FCC said. In an order and rulemaking notice released late Friday, the commission said the money should be kept “as a potential down payment on proposed broadband universal service reforms … including to index the E-rate funding cap to inflation.” The commission sought comment on whether it should amend its rules permanently “to facilitate efficient use of reclaimed excess high-cost support” and on a proposed rule change that would “reclaim legacy support surrendered by a competitive ETC when it relinquishes ETC status in a particular state."

Washington’s Utilities and Transportation Commission seeks comment on an update of a “concept paper” proposing how the state should restructure its universal service fund, the commission said Thursday. The extensive document, submitted Wednesday by the Washington Independent Telecommunications Association, reflects revisions to a July proposal and goes into significant detail in recommendations. The commission tentatively set Oct. 4 for a third workshop on the document and related matters. Comments are due Sept. 17.

FCC Chairman Julius Genachowski is taking flak for not moving as quickly as many had expected to carry out the National Broadband Plan, released in March to much fanfare. The August commission meeting included votes on only two items, concerning wireless backhaul and hearing-aid-compatible phones. The July meeting included votes on three. Even some Democrats have started to question why the FCC isn’t moving faster on the massive broadband plan and whether Genachowski is reluctant to make tough policy calls.