Last week, we sat down with USTelecom’s Vice President for Policy David Cohen to talk about the current FCC proceeding on universal service reform.
Be sure to also check out this post by David Cohen, which talks more about the ongoing proceedings and USTelecom’s recent filing on the issue.
Ever looked at the telephone poles that run down your street or alley? To the untrained eye it may just look like a jumble of cables, wires, and boxes strapped onto a utility pole. But it actually reflects the intense - and growing - competition between the cable, telephone, and CLEC companies who deliver bundled voice, video and broadband services to consumers.
Yet despite delivering nearly identical bundled services, cable, telephone and CLEC providers each pay vastly different rates to the pole owners, usually the local electric company. For example, ILEC’s can pay more than 1,400% more for pole attachments than their cable counterparts; the disparity between ILEC and CLEC rates is also high, in some instances near 900%.
But that disparity is coming under increasing scrutiny. The FCC has initiated a rulemaking proceeding to determine whether broadband attachments by all classes of providers should be subject to one uniform rate. From a policy perspective, this makes sense. Why should providers of fundamentally identical services attaching fundamentally similar devices to the poles be charged remarkably different rates?The current rate disparity between ILECs, CLECs, and cable companies puts ILECs at a substantial competitive disadvantage with regard to the prices they can offer consumers. A broad internal survey of USTelecom members, which we cited in our initial comments in the pole attachment proceeding, highlighted the significant, consistent and widespread disparity in rates charged to various providers.
Yesterday USTelecom filed reply comments in the FCC’s ongoing proceeding on pole attachments, calling for parity in rates among the providers of similar services; as the first round of comments in the proceeding showed, there’s widespread support for rate parity. Specifically, we write:
The initial comments in this docket clearly demonstrate widespread enthusiasm and support among diverse groups for a uniform, reasonable rate formula for broadband attachments. Representatives from [ILECs], cable providers, wireless providers, [CLECs] and utilities expressed their support for such an approach.
We also noted in the comments that the FCC has ample statutory authority to establish a rate formula to cover broadband attachments for all manner of providers, including ILECs; we certainly hope that the Commission acts on that authority to level the playing field between broadband providers, regardless of platform.
Reforming the high-cost portion of the Universal Service Fund is critical in order to meet the program’s goal of bringing service to rural and remote communities at prices comparable to urban or suburban areas. While support for incumbent telephone companies has remained flat since 2003, the price tag for support to wireless CETCs has risen exponentially in recent years-from about $15 million annually in 2000 to almost $1 billion in 2006 .
Often those CETC allocations go to carriers that are operating in areas where there is already sufficient competition from unsubsidized providers. That means that in addition to putting unsustainable pressure on the fund, it’s far from clear that the money is actually supporting the objectives of the program.
FCC proceedings on USF reform have been ongoing, and late last week, USTelecom filed comments on three proposals the Commission was seeking comment on: the Joint Board’s proposal for separate mobility, broadband, and provider-of-last-resort funds; the FCC’s NPRM on getting rid of the identical support rule; and the FCC’s NPRM on using reverse auctions.
In the comments filed with the Commission, USTelecom laid out the following proposal for phasing-in reforms to the universal service system:
You can see a press release that we issued about the filing on our website, and USTelecom members can read an in-depth analysis of the issues at hand in last Friday’s edition of our members-only newsletter, Crossroads Express.
Today is Earth Day, and USTelecom is celebrating the occasion all week on our website, www.ustelecom.org. The video wall on our front page-which is usually dedicated to highlighting all the myriad benefits of broadband, from education to economic opportunity to e-health, and beyond-will specifically feature videos, facts, and figures about the environment and the ways using broadband can help protect it.
In addition to being tech-savvy, broadband consumers are increasingly more cognizant about minimizing their impact on our planet. So we’ve put together a list of ten ways broadband can help change the world, including:
To see the rest of the list, visit www.ustelecom.org and drag the “10 Ways Broadband Can Help Change the World” icon onto the video wall! You can find more fast facts about how broadband can help protect the environment here.
Patrick Brogan discusses the FCC Broadband Data.
As we previously mentioned, yesterday USTelecom’s Walter McCormick delivered a keynote address at the Telecom2008 Conference going on now as part of the NAB Show in Las Vegas. In discussing the state of broadband in the United States, McCormick called for sensible, clear broadband policies at every level of government to ensure that broadband companies can continue to offer “this vital infrastructure toward all Americans so no community is left behind.”
McCormick also made a very interesting point about the nature of America’s broadband infrastructure:
“[U]nlike virtually every other industrialized nation today, these primary arteries of our modern economy - the bridges, ports and highways of our increasingly digital nation - are being built not through massive taxpayer-financed public works projects, but through sensible policies that have unleashed vigorous private investment from diverse competitors.”
Just after McCormick’s address, USTelecom Executive Vice President Regina Hopper moderated a panel discussion on how leading broadband providers are bringing the broadband revolution to television, news and entertainment. The panel featured Dan York, Executive Vice President, Programming for AT&T, and Terry Denson, Vice President-Content Strategy and Acquisition for Verizon talking about their new, innovative fiber offerings, what they mean for the broadcasting community, and what the future may hold for consumers in a broadband world. The panel got great write-ups at both Telephony online and xchange Magazine online. Be sure to check them out.
Kevin Rupy, USTelecom’s director of policy development, recently sat down to talk with us about the FCC’s recent 700 MHz spectrum auction and what the future may hold for the auction’s winners–and their customers.
Last week, we mentioned that USTelecom President and CEO Walter McCormick and Executive Vice President Regina Hopper will be appearing at the Telecom2008 Conference, which will be taking place next week at the National Association of Broadcasters’ Annual Show in Las Vegas. I recently sat down with Regina to talk about USTelecom’s involvement in the conference and about the exciting new convergence between broadband and broadcasting.
Planning for NXTcomm08 is well underway, and the show has already announced a few keynote speakers for the event including AT&T Chairman & CEO Randall L. Stephenson, Verizon President and COO Denny Strigl, and Mark Burnett, the creator of a reality TV empire that includes Survivor. For more information and to register for the event, be sure to visit the NXTcomm site. And keep checking back on the USTelecom blog for more announcements about the speakers, presentations, and exhibits you’ll find at NXTcomm!
USTelecom President and CEO Walter B. McCormick and Executive Vice President Regina Hopper will address the Telecom2008 Conference at the annual National Association of Broadcasters Show in Las Vegas on April 14. McCormick will deliver a keynote address on the state of U.S. broadband and consumers’ entertainment experience and Hopper will moderate a session on the future of television, news and entertainment in the new world of broadband. The panel will also feature Dan York, executive vice president for programming at AT&T, and Terry Denson, vice president of programming and marketing for Verizon’s FiOS division. The panel will cover a range of issues on broadcasting and broadband, including business models, new technologies, consumer expectations, and more.
This is a very exciting opportunity, and it demonstrates just how much our industry has changed in the last five years. Consider it: five years ago, representatives from the telecom and broadcast industries may have had little to talk about if they found themselves in the same room, but with telecom companies and broadband providers offering an ever-wider array of services the future of entertainment and the future of broadband are inextricably linked. We’re very happy to be joining the discussion on how next generation networks can help deliver next generation entertainment products.
Be on the lookout on the USTelecom website next week for a vidcast discussion with Regina Hopper about the upcoming NAB show.
