ORLANDO -- The telecom industry still is divided on how to revamp intercarrier compensation, indicated speakers at a CompTel panel on the topic. The FCC appears to be teeing up the topic for a Nov. 4 vote. But in a late Monday panel, officials from AT&T, XO Communications the VON Coalition and the National Association of State Utility Consumer Advocates disagreed not only on overhaul proposals, but on whether the current system even needs fixing.

The FCC seems to be setting up intercarrier compensation and Universal Service Fund overhaul proposals for its Nov. 4 meeting. Whether Chairman Kevin Martin will propose a complete overhaul there was still fluid, sources said. A court order gave the commission until Nov. 5 to explain the statutory basis for its ISP-bound traffic compensation regime. Industry officials said the Wireline Bureau is soliciting comments on several comprehensive proposals.

The FCC needs a long-term overhaul policy for the Universal Service Fund, FCC Commissioner Deborah Tate told an OPASTCO conference Monday in Quebec, Canada. It’s “critical” that a revamp “strikes a balance between the costs of advancing our national telecommunications infrastructure and the costs consumers are willing to bear,” she said. The current USF surcharge on interstate calls is 11.4 percent, she said.

LAS VEGAS -- FCC Chairman Kevin Martin told CTIA attendees he expects to move quickly to adopt a cap on payments to competitive eligible telecom carriers (CETCs), now that Commissioner Robert McDowell is a likely third vote in favor (CD April 1 p1). Martin said he still plans an en banc hearing of the commission to look more closely at early termination fees (ETFs) often imposed by wireless carriers and other regulated companies. Martin also said he was starting to circulate an order dismissing a Skype petition seeking Carterfone rules for wireless.

A federal court declared it “unlawful” for Nebraska to force Vonage to pay into a state universal service fund. The U.S. District Court for Nebraska slammed the Nebraska PSC with a preliminary injunction, saying the PSC’s “authority to regulate the nomadic interconnected VoIP service provided by [Vonage] is preempted by the FCC, and Vonage need not comply with the [Nebraska USF order].” The order applies only to Nebraska, but will “send a signal” to other states, said Stifel Nicolaus analyst David Kaut.

More than 70 percent of Americans polled back capping the high-cost portion of the Universal Service Fund, and 62 percent oppose using USF subsidies to widen broadband access in rural areas, said Cap the Fund, a group opposing more USF spending. “This program requires us to trust the government not to throw money to services that could be better provided by non-subsidized companies,” said Mac Haddow of the Seniors Coalition, a Cap the Fund member.

An FCC vote on whether to cap universal service subsidies to competitive rural telecom companies “hopefully” will occur in the “very, very near future,” FCC Commissioner Deborah Tate said Monday at a conference on Universal Service Fund reform. Asked to specify the timing, Tate said only FCC Chairman Kevin Martin can answer more definitively. She co- chairs the Federal-State Joint Board on Universal Service, which earlier this year recommended the interim cap to the FCC. Tate said she’s still pushing for a Nov. 1 deadline for the Joint Board to make another recommendation to the FCC on longer-term changes in the USF.

The House today (Wednesday) is set to debate an appropriations bill (HR-2829) that would give the FCC $2 million to design a program explaining the shift from analog to digital TV. The FCC originally sought $1.5 million, but the Financial Services Subcommittee upped the sum out of concern about “low” public awareness about the transition. The overall bill could face a veto, since it contains provisions dealing with pay raises for members of Congress.

House Telecom Subcommittee Chmn. Markey (D-Mass.) is waging an effective oversight campaign over the FCC, NTIA and DTV transition issues, according to interviews with industry sources and analysts. Markey presides today (Tues.) over a 4th hearing on broadband, examining how the U.S. policy compares with those of other countries. Controversy is likely given new rankings that show that the U.S. slipping even further behind in broadband deployment.

The Senate shut down for Aug. recess early Fri. without passing the telecom bill (HR-5252), despite Commerce Committee Chmn. Stevens’ (R-Alaska) week-long drive to round up the 60 votes needed to avoid a filibuster. On Tues. Steven was somewhat optimistic, he told reporters after the Republican policy lunch. “I think I've got them, but I'm not sure yet.”