Foes of cost-assignment forbearance for Bells slammed a Verizon compliance plan submitted last week. Verizon offered the plan to show how it will give the FCC usable accounting data at the agency’s request once an order granting Verizon forbearance on cost-assignment rules takes effect. Verizon said its approach “generally” follows one AT&T submitted two months ago (CD Sept 5 p7). AT&T’s plan hasn’t gotten Wireline Bureau approval. “Verizon’s compliance plan is, like AT&T’s plan, better described as a non-plan,” said James Blaszac, attorney for the AdHoc Telecommunications Users Committee. “If the [Wireline Bureau] were to accept these compliance plans, it would act contrary to its delegated authority because it would put the commission in a position in which [it] would be unable to satisfy the statutory obligations that it recognizes as still important. Approval of these plans would be irresponsible deregulation, and would harm customers.” A Sprint Nextel spokesman said Verizon copied AT&T’s proposal. “Just like AT&T, Verizon has simply told the commission, ‘Trust us,'” he said. “This approach is not sound public policy and we believe this plan, like AT&T’s, should be pronounced dead on arrival.” Verizon said it will maintain Uniform System of Accounts books, except for two sections on non-regulated activities and affiliate transactions. Verizon promised to maintain its most recent cost-assignment results. If the FCC needs more data, Verizon “will perform such a study to the extent it is not unreasonably burdensome.” Verizon will keep data and documentation about its accounting methods and cost- allocation procedures, such as its most recently filed Cost Allocation Manual, it said. And Verizon plans to record and price affiliate transactions in accordance with Generally Accepted Accounting Principles, and keep data and documentation on its present accounting methods and procedures for affiliate deals, it said. Once the bureau approves Verizon’s plan, the carrier plans immediate implementation of the proposed changes, it said. “Verizon expects a very short transition period,” it said.
Results of Canada’s recent AWS auction look to stir up competition, SeaBoard Group analysts said. Final payments on high bids in the sale, which brought C$4.25 billion, were due Sept. 2. The auction was dominated by Canadian incumbents Rogers, Telus and Bell Canada, which spent 61 percent of all money raised. But the sale also seems likely to stir new rivalries, SeaBoard said. New entrant Globalive, which got a 10 MHz national license, likely will pursue a prepaid model like that of MetroPCS in the U.S., the analyst firm said. Globalive suggests it will be operational in key markets in Q2 2009, they said. Globalive lacks coverage in southern Quebec, which shouldn’t be a problem given that the company has mandated roaming privileges on incumbent networks, they said. Globalive might consider partnerships to build a national brand, they said. Potential partners include Cogeco, Jaguar Wireless, SSI Micro and MTS Allstream. MTS is an “ideal partner” due to its large base of enterprise customers and a national fiber network with dense urban deployment, SeaBoard said. Cable companies also are angling to enter the wireless game, SeaBoard said. In particular, Videotron, with nearly a million cable phone customers, stands to benefit, analysts said. “Each cable telephone household represents a potential of three added Videotron wireless customers -- exciting times at Videotron,” they said. And the company’s ties to Canada’s largest French- language TV network, Quebec’s largest music distributor and the Sun Media newspapers create “significant” potential for synergies, they said. SeaBoard was intrigued by the extent of bidding for the G block, given that this spectrum range is unique to Canada, Denmark and the U.S. No equipment ecosystem exists for the spectrum, which doesn’t work with new AWS handsets deployed for T-Mobile and MetroPCS U.S. networks, analysts said. SeaBoard believes the spectrum could best be used for cellular backhaul, it said.
FCC commissioners probably will vote on an order related to a Freedom of Information Act request ahead of this week’s agenda meeting, a commission official told us. Commissioners probably will vote 5-0 to reject Fusion Telecommunications’ challenge to an order granting an FoIA request by Wall Street Journal reporter Mary O'Grady, the official said. O'Grady, researching Haitian President Jean Bertrand Aristide’s finances, asked the FCC for international traffic-tariff material on Fusion. When the FCC found it didn’t have the information, it asked Fusion to file it. Fusion complied but asked the agency to keep the material confidential. The FCC gave O'Grady the information, saying it should be public.
Keep interconnected VoIP eligible for Universal Service Fund E-Rate schools and libraries support, a cross section of industry and E-Rate applicants said in Thursday comments on a rulemaking. But commenters differed on funding year 2009 eligibility for filtering software, dark fiber and other new services.
Recent talk of overhauling intercarrier compensation and USF has sparked fevered telecom industry debate. On a Thursday FCBA panel, officials and lawyers representing AT&T, Sprint Nextel, Windstream, OPASTCO and competitive local exchange carriers reviewed recent proposals by Verizon and others advocating a uniform $0.0007 terminating access rate for all traffic. USF contribution was among few items on which they appeared to agree.
Private submarine cable operators support a regulatory fee structure proposed by AT&T and Verizon for submarine cable systems, FCC and industry officials told us Wednesday. The two sides are working on language and implementation issues, but are near formal agreement, we're told. The FCC has promised to act by Sept. 29 on the issue (CD Sept 5 p8). Level 3 and the other submarine cable operators, which earlier pitched a collective proposal, now believe the AT&T- Verizon plan, while likely to mean higher fees, is more fair, said an industry official close to the proceeding.
Legislation requiring pre-paid calling card companies to accurately disclose terms of service unanimously passed the House Commerce consumer protection subcommittee Tuesday. Work on a package of amendments was deferred to the full committee at an afternoon markup session, giving lawmakers more time to resolve disagreements over sections of the bill. Subcommittee Chairman Bobby Rush, D-Ill., suggested in comments he supports the FTC’s request to allow it authority over telecom carriers in policing pre-paid calling card fraud.
Consumer groups for people with speaking disabilities supported stricter rules for speech-to-speech telecom relay services, in comments last week on an FCC notice of proposed rulemaking. Relay providers resisted some of the changes being considered. The sides agreed that Internet-based STS service should get Interstate TRS Fund support.
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.
A bill aimed at curbing call center outsourcing got mixed reviews in a Thursday House Subcommittee on Commerce, Trade, and Consumer Protection hearing. The call center bill (HR-1776), sponsored by Rep. Jason Altmire, D-Pa., would require call centers to give their physical locations at the start of a call.