The DTV transition is among 13 priorities the new White House must confront immediately, the Government Accountability Office said Thursday. Nearly a third of U.S. households are at “some risk” of losing TV service Feb. 17, GAO said, and many Americans are confused about what to do. NTIA likely will see coupon demand rise as the transition nears but “has no plan to address the increased demand,” the agency said.

Four members of the FCC pledged to work together on broad intercarrier compensation and Universal Service Fund reform, for a vote at the Dec. 18 FCC meeting. The four cited growing consensus on several issues teed up for decision, in a statement they all signed. But FCC Chairman Kevin Martin questioned whether his colleagues will really be ready to reach a decision in December. The letter was released just before midnight Wednesday, as the FCC responded to a writ of mandamus by the U.S. Court of Appeals for the D.C. Circuit addressing the so-called ISP remand (CD Nov 6 p1).

A new Universal Service Administrative Co. report proves the FCC needn’t revamp Universal Service Fund contribution, the National Association of State Utility Consumer Advocates said Monday. In the report, USAC projected it would need to collect $1.6 billion in Q1 2009. “If the revenues subject to assessment for the first quarter are consistent with prior quarters, the USF assessment factor for the first quarter will likely be at its lowest since the end of 2006,” NASUCA said. That shows that “the current revenue-based mechanism is not in crisis,” said David Bergmann, chair of NASUCA’s telecom committee. “There is no need for a switch to a numbers-based, connections-based, or hybrid system.”

Failing to win colleagues’ support, FCC Chairman Kevin Martin deleted an overhaul of the Universal Service Fund and intercarrier compensation from Tuesday’s meeting agenda. The order remains on circulation, but the agency will vote on no items related to USF or intercarrier compensation at the meeting, an FCC spokesman said. In a joint statement, the other four commissioners laid the blame on the chairman.

The FCC seems near agreement on imposition of roaming extensions on Verizon Wireless as a merger condition following the carrier’s acquisition of Alltel. The merger is set for a vote Tuesday, though discussions continue at the FCC. The key issue is how long Verizon Wireless extends roaming agreements small carriers primarily have with Alltel after the merger is finalized. Verizon Wireless agreed to a two-year extension to win Department of Justice clearance of the merger.

Other commissioners have rejected FCC Chairman Kevin Martin’s proposal for a revised spectrum screen as part of the order approving the Sprint Nextel-Clearwire WiMAX transaction, we've learned. An order circulated by Martin proposed adding EBS/BRS holdings to the types of spectrum the FCC includes in its screen, but the other four commissioners oppose that, FCC officials said. As a result, a revised screen likely won’t be part of a final order on the deal, set for a vote Tuesday.

Hill opposition to intercarrier compensation proposals continued Thursday, with letters from House and Senate members sent to FCC Chairman Kevin Martin. Legislators complained about a lack of openness about the process in addition to criticisms over substance. “Fundamental fairness suggests that the public at least have the chance to read the full proposed order prior to Commission consideration,” said Rep. Joe Barton, R-Texas, ranking member of the House Commerce Committee. “It is clear that the FCC process … falls short of what is required,” said a letter signed by Senate Commerce Committee members from both parties. Federal law requires agencies to provide for public participation “through adequate notification and the opportunity for interested parties to provide comment,” said Sens. Olympia Snowe, R-Maine, Clair McCaskill, D-Mo., and Amy Klobuchar, D- Minn. The proposals for intercarrier compensation and universal service could “dramatically change the landscape of the telecommunications industry,” the letter said. “It would be negligent on the FCC’s part to introduce such regulatory uncertainty when the country is facing such uncertain economic times.” Barton said the USF proposal “misses the mark,” although the cap on high-cost spending is a “good start.” But it “locks in incumbent providers rather than bring competition to rural America,” Barton said. Based on an FCC briefing, Barton said, the suggested order would require only an incumbent rural wireline provider to face a competitive auction if it declines the subsidy to provide broadband throughout its study area. “This means the rural provider could continue to get the subsidy even if another provider could offer service more efficiently,” he said. He also criticized the proposal as failing to overhaul “inappropriate voice subsidies.” There’s “no end in sight” to a program that has cost Americans $51 billion over 10 years, Barton said.

Universal service revenue should go to expand broadband services, former FCC Chairman Reed Hundt said Thursday. Speaking on behalf of Sen. Barack Obama’s presidential campaign at a New America Foundation briefing, he unexpectedly had the floor to himself when the technology adviser for Sen. John McCain’s campaign canceled. Hundt said the USF program needs to shift gears in line with new modes of communication. Spectrum policy would be a major focus in an Obama administration, he said. Obama has no position on whether to auction government-held spectrum, he said. Net neutrality rules also would be an Obama priority, he said. Hundt wouldn’t give a list of candidates for FCC chairman, but said he wouldn’t take the job again.

FCC Chairman Kevin Martin’s push to act on a complex Nov. 4 agenda has fueled intense lobbying, letter writing, phone calls and meetings with advisors, according to interviews with analysts, lobbyists and Hill staffers. The activity level, common in administrations whose ends are near, is heightened by high-profile issues affecting a wide array of players. The “order of magnitude” is big in a compressed time period, said Stifel Nicolaus analyst Blair Levin.

Two trade association for small rural carriers said they back the FCC’s overhaul plan for the Universal Service Fund and intercarrier compensation, after FCC Chairman Kevin Martin agreed to several concessions for rate-of-return carriers. The Western Telecommunications Alliance and the Organization for the Promotion and Advancement of Small Telecommunications Companies approved the plan after “numerous direct conversations” with Martin, including a conference call Tuesday night ending around 7:45 p.m., directly before the start of sunshine. The National Telecommunications Cooperative Association called the endorsement “very risky and dangerous.”