Source: The ILEC Advisor

The Senate Commerce Committee held a hearing on October 12 to discuss Universal Service Fund and Intercarrier Compensation reform, in what may have been the last big USF/ICC event before the final rules are released in the coming weeks. The Senators who participated in this hearing asked many challenging questions about the ABC Plan, RLEC Plan, FCC plan, and state efforts. Overall there was a focus on fairness, equality, and compromise; and the Senators were particularly concerned with how the different plans may impact consumers. Witness panelists included Michael Powell (NCTA), Shirley Bloomfield (NTCA), Kathleen Abernathy (Frontier), Mary Dillon (US Cellular), and Philip Jones (Washington Utilities and Transportation Commission). Cassandra Heyne covers several of the hearing's interesting debates.

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Source: The ILEC Advisor

Following FCC Chairman Julius Genachowski's October 6 announcement about the yet-released draft rules for USF/ICC reform, spokespersons from across the telecom industry issued statements in response; even though the announcement was slim on actual details. The reactions varied and were mostly consistent with the stakeholders' ongoing arguments in this proceeding, but one message was clear throughout: we need more information. Cassandra Heyne summarizes reactions from different industry groups to Thursday's big announcement on USF/ICC reform.

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Source: The ILEC Advisor

Today FCC Chairman Julius Genachowski finally revealed some details about the highly anticipated USF/ICC Reform rules, which will be voted on by the Commission at the Oct. 27 Open Meeting. Genachowski described the importance of reforming the current system so that all Americans can experience the benefits of broadband, and he reiterated the FCC's negative sentiment towards the current rules. Genachowski provided few precise details about the rules, but he explained that the new Connect America Fund subsidies will be distributed via reverse auctions in price-cap ILEC areas. The FCC will take a hard line to curb ICC arbitrage, and the "recovery mechanism" funds for lost access revenue will be limited and only available to some companies. Cassandra Heyne summarizes Genachowski's big announcement.

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