Congress, Industry Groups Call On FCC Chairman To Delay Vote
Some 75 members of Congress called on the head of The Federal Communications Commission to give proposed changes to revamp the current system of fees that phone companies pay to connect calls with other networks a public review.
Changes proposed by FCC Chairman Kevin Martin would change rates to become lower and more uniform.
The two largest phone companies, Verizon Communications Inc. and AT&T Inc. agree with the proposal on the grounds that the current ones are outdated and based on obsolete regulatory distinctions.
However, competing carriers and rural phone companies are opposed to the new proposal because it will decrease the money they get for completing phone calls to their subscribers. And consumer advocates warn that it could lead to higher phone bills – particularly for rural customers – as phone companies seek to recover lost access charges from other sources.
Martin is also seeking major changes to the $7 billion-plus Universal Service Fund, a federal program that subsidizes telecom service in rural and poor communities through a surcharge on phone bills. Among other things, Martin would require carriers to use Universal Service money to invest in broadband networks in parts of the country that lack high-speed Internet connections.
A vote has been set for Nov. 4, as the FCC faces a Nov. 5 deadline imposed by a federal court for reforming part of the complex access fee system.
In a letter sent this week, however, 61 House members called on the chairman to release the proposal for public review and comment for at least two months.
"The public deserves the opportunity to provide fully informed comments, and the commission stands to gain by understanding the positions of all parties interested in its potentially sweeping decision," the letter says. It was written by Virginia Democrat Rick Boucher and Nebraska Republican Lee Terry, who have sponsored legislation to reform the Universal Service Fund.
Additional letters came to the same conclusion. One was signed by 10 senators who expressed concerns that the details of Martin’s proposal could end up hindering the construction of rural broadband networks.
Robert Kenny, Martin’s spokesman, insisted that the proposal will not necessarily lead to higher phone bills and will help expand high-speed Internet connections in underserved parts of the country.
"Chairman Martin continues to work with the other commissioners on what we know is a very complex and complicated proposal that we hope will bring meaningful reform for the benefit of consumers," Kenny said.
Martin also intends to move ahead with a vote on another contentious item on the Nov. 4 agenda: a proposal to open up unused portions of the television airwaves known as "white spaces" to deliver wireless broadband services, Kenny said.
Public interest groups and many of the nation’s biggest technology companies, including Google Inc. and Microsoft Corp. hope the plan will lead to universal, affordable broadband.
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