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Oct. 30, 2008

Members of Congress are putting pressure on the FCC to delay yet another matter on its ambitious Nov. 4 agenda.

Congress wants the Federal Communications Commission to postpone its vote on intercarrier compensation and the USF (Universal Service Fund) until at least the end of December 2008.

Overall, 61 members of Congress have sent a letter to the FCC saying that its proposal would result in higher costs to wireless users and that it would even hinder broadband investment across the U.S.

They’re concerned the FCC hasn't yet released a full proposal for public review and suggest that Congress, not the FCC, decide how the USF gets changed and by whom.

For the past four years, USF reform has been a serious problem and now interested parties are wondering why the FCC chose Nov. 4 (Election Day!) to make a ruling on such an issue...

John Rooney, CEO of U.S. Cellular says "we don’t know what they’re planning to do, which will inevitably lead to unintended consequences, which is exactly what we DON'T want."

Wireless operators such as U.S. Cellular receive subsidies to install equipment in areas where there’s little or no justification for investing in equipment, simply because the population is sparse and that there's not enough subscribers to pay for the service.

The way it works out is this: U.S. Cellular executives sit down with state public utility commissioners and map out a two or three-year plan to determine what a specific area needs. The subsidies then help build and maintain wireless sites, so even if no new sites were built, the company would still lose out on maintenance funds.

However, from what was learned, the latest plan is to take subsidies away from rural operators, which would effectively bring them to a halt in what they are doing in the more rural parts of the areas they serve. Some observers say "it’s a rush to judgment on a day when most people will be focused on the Presidential election."

Earlier this week, the FCC said that it will make efforts towards a reform of both intercarrier compensation and universal service.

CTIA supports the draft framework – with some proposed modifications, such as a 5-year transition period during which support currently provided to competitive eligible telecom carriers would be phased out in equal increments and funding provided under any successor mechanisms would be phased in.

Congress also wants the FCC to seek comment on an appropriate universal service mechanism focused on the deployment and maintenance of advanced mobile wireless services in high-cost and rural areas.

Yesterday, the AARP and the Communications Workers of America (CWA) independently sent letters to the FCC voicing their concerns regarding the Commission's proposed order.

Along with members of Congress, each group separately urged the FCC to postpone its vote in order to allow for public input and to ensure a sufficient review period for FCC commissioners.

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Source: The Wi-Fi Alliance.